Answer:
The after tax real interest rate of interest is 2%
Explanation:
The after tax real interest rate is computed as follows:
Given,
Nominal interest rate is 5%
Inflation rate is 2%
Computing before tax real interest rate as:
Before tax real interest rate = Nominal interest rate - Inflation rate
= 5% - 2%
= 3%
Computing tax:
= 20% tax on nominal interest rate
= 20% × 5%
= 1%
Now, computing after tax real interest rate as:
After tax real interest rate = Before tax real interest rate - Tax
= 3% - 1%
After tax real interest rate = 2%
Answer:
Correct option is D
Explanation:
Variable cost remains constant for each single unit.
That means variable cost is defined per unit, therefore with this we know statement b is correct.
Also with change in production in number of units, the total cost varies and proportionately changes with change in level of output.
Therefore statement A is also correct.Thus on the conclusive part, Staement D is correct.
Answer:
5.01%
Explanation:
The bond nominal yield to call is 5.01%
Answer:
Objective Theory
Explanation:
The Objective theory states that the intent to form a contract will be judged by outward objective facts such as the words and actions of the party instead of the secret, subjective intentions. This theory replaced the Subjective theory in the late nineteenth century. The former theory was of the opinion that the meeting of minds, which translates to the unexpressed intentions of the party would form a basis for interpreting the intent to form a contract.
The objective theory is important as it advocates freedom to a fair hearing, freedom of contract, and personal independence or sovereignty.
Answer:
Contribution per unit of scare resource (in hour) = $24 per hour
Explanation:
The question falls under the limiting factor analysis
<em>When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that </em><em>it maximizes the contribution per unit of the scare resource.</em>
Therefore Santario Company should allocate the machine hours to maximize the contribution per unit of machine hour.
Contribution per unit of scare resource is determine as follows:
Contribution per unit of scare resource for Model K-3
Contribution per unit of Model K-3 = $6
Machine time per unit = 15 minutes
<em>Contribution per unit of scare resource in minutes</em>
=Contribution per unit/Machine time per unit
= 46/15 minutes
= $0.4 per minute
Contribution per unit of scare resource (in hour)
$0.4 per minutes× 60
= $24 per hour
