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2 years ago

A. How much would you pay for a Treasury bill that matures in 182 days and pays $10,000 if you require a 1.8% discount rate?

Business

1 answer:

Sonja [21]2 years ago

4 0

Answer: $9909

Explanation:

Let the amount that will be paid be represented by y. The question can now be solved as:

(10000 - y)/10000 × 360/182 = 0.018

(10000-y)/10000 = 0.018 × 182/360

(10000 - y)/10000 = 0.0091

10000-y = 0.0091 × 10000

10000 - y = 91

y = 10000 - 91

y = $9909

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A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 7 percent. Thi

Mrrafil [7]

Answer:

a. 9%

b. Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits

d. Rate of return of economy = 7%

Explanation:

a. Percentage rate of return = Earning ÷ Investment by founders × 100

= $18 ÷ $200 × 100

= 9%

b. Company rate of profit - Rate of profit of economy

= 9% - 7%

= 2% > 0

Yes, the firm earning an economic profit of 2%

c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.

d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.

Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%

4 0

3 years ago

The managers at Fazer Technologies Inc. prepared a report on the profits earned and the losses incurred by the company over the

HACTEHA [7]

Answer:

<u>external report</u>

Explanation:

Note that, the manager prepared a report which he later presented to the stockholders of the company; meaning he gave the report to an outside party.

Remember, external reports are usually given to investors to know the financial condition of the company. Thus, the shareholders would need the report in order evaluate the financial condition of Fazer Technologies Inc.

3 0

2 years ago

Break-Even Sales Currently, the unit selling price of a product is $7,520, the unit variable cost is $4,400, and the total fixed

-Dominant- [34]

Answer:

Current Break Even point = 6,500 units

Break Even point in Unit Sale = 7,500 units

Explanation:

The computation of break-even sales is shown below:-

Sale price = $8,000

Variable expense = $4,400

Contribution margin = Sale price - Variable expenses

= $8,000 - $4,400

= $3,600

Fixed expenses = $23,400,000

Current Break Even point = Fixed expenses ÷ Contribution margin

= $23,400,000 ÷ $3,600

= 6,500 units

Therefore for computing the break even point we simply divide contribution margin by fixed expenses

b. Sale price = $7,520

Variable expense = $4,400

Contribution margin =$7,520 - $4,400

= $3,120

Fixed expenses plus desired profit = $23,400,000

Break Even point in Unit Sale = Fixed expenses ÷ Contribution margin

= $23,400,000 ÷ $3,120

= 7,500 units

So, for computing the break even point we simply divide contribution margin by fixed expenses

5 0

3 years ago

You are given the following facts about a 40% owner of an S corporation, and you are asked to prepare her ending stock basis.

barxatty [35]

Answer:

$74,120

Explanation:

Preparation of her ending stock basis

ENDING STOCK BASIS:

Beginning stock basis $36,800

Add:Increase in AAA $12,800

(.40 * $32,000)

Add:Increase in OAA $2,520

(.40 * $6,300)

Add:Stock purchase $22,000

Total Ending stock basis $74,120

Therefore her ending stock basis is $74,120

6 0

2 years ago

An employee comes to work on time every day only because he knows that his pay will be docked if he is caught coming in late. Ho

Maru [420]

Answer:

The answer is: Postconventional moral development

Explanation:

At this stage of moral development, an individual´s morality is defined by more abstract principles and values. He or she may believe that some laws and rules are unfair and should be changed or eliminated. Individual realize that they are separate entities from societies and they may choose to not follow the rules of the organization.

7 0

2 years ago