Answer:
The multiple choices are :
a.$8
b.$20
c.$22
d.$45
The correct option is C.$22
Explanation:
The earnings accruing to the selling group is the selling concession of $22 per $5,000 per bond.
Option A is obviously wrong as there is nothing in the questions that suggest earnings of $8 per bond for the selling group.
Option D is wrong as well because $45 per bond is the spread which is the extra yield to bondholders when compared to investment in government securities
Answer: I am right, the increased demand represents a rightward shift of the aggregate demand curve.
Explanation:
The increase in aggregate demand by foreigners occurred as a result of a fall in the value of the US dollars and aggreagrate price level stayed the same. Therefore, the change in aggregate demand didn't occur as a result of a change in price.
If agregrate demand changed as a result of a change in the aggregate price levels, there would be a change in quantity demanded and a movement along the demand curve.
It's only a change in price that result results in a movement along the aggregate demand curve.
Other factors that leads to a change in demand either shifts the aggregate demand curve to the left or to the right.
Therefore, an increase in aggregate demand as a result of the fall in value of US dollars causes the aggregate demand curve to shift to the right.
The shift in the aggregate demand curve to the right shows that demand has increased but aggregate price hasn't changed.
Answer:
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
Explanation:
In order to calculate the the futures price of the pound for a one-year contract be to prevent arbitrage opportunities we would have to make the following calculation:
futures price of the pound for a one-year contract=Spot rate*(1+United Kingdom risk free rate)/(1+United States risk free rate)
futures price of the pound for a one-year contract=$1.60/BP*(1+6%)/(1+4%)
futures price of the pound for a one-year contract=$1.63/BP
The futures price of the pound for a one-year contract be to prevent arbitrage opportunities would be $1.63/BP.
Answer:
Perpetual batteries has 2 options in order to meet its ethical responsibilities:
- Try to make sure that their system is 100% leak proof, but that would be very hard to do (systems are rarely perfect) and the public might not believe them. If the public does not believe them, they might still suffer form lower sales.
- Change the design of their batteries so that they no longer need to use the harmful chemical, and instead use environmentally friendly processes. This option is better because this change can be used to both solve environmental issues and helps to promote the company's image as green or environmentally friendly which can increase their sales volume.
Answer:
Peridot should report net cash outflows from investing activities of $26 million
Explanation:
Prepare a Cash flow from Investing Activity Section as follows :
<u>Cash flow from Investing Activity </u>
($ in millions)
Purchase of Machinery (31)
Proceeds from Sale of land 92
Purchase of Office Equipment (87)
Net Cash Flow from Investing Activities (26)
The Section only includes Activities relating to Capital Expenditure
