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3 years ago

What is a substitute good

Business

1 answer:

nasty-shy [4]3 years ago

4 0

Answer:

What is a substitute good?

substitute good is a type of good that has an alternative i.e another good can be used to compare with it

Explanation:

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Which of the following bonds would have the lowest interest rate? All of the bonds have 10 years to maturity

Rashid [163]

Answer:

C. Mortgage bond rated AAA is the correct answer.

Explanation:

4 0

3 years ago

A broker was paid a commission of 6% of the first $120,000 of a sale price and 4% of all over $120,000. What would the sale pric

sergey [27]

The sale price be if the total commission was $9,000 would be $165000.

<h3><u>What is commission?</u></h3>

A type of variable-pay compensation for goods or services sold are commissions.
Salespeople are frequently encouraged and rewarded with commissions.
Additionally, commissions can be created to promote particular sales habits.
For instance, commissions may be decreased while providing significant discounts.
Or commissions might be raised when promoting particular goods that the company wishes to sell.
The framework of a sales incentive programme, which may comprise one or more commission plans, is where commissions are normally administered (each typically based on a combination of territory, position, or products).

As a strategy for businesses to try to realign employee interests with those of the company, payments are sometimes calculated as a proportion of revenue.

The broker's 6% commission came to $7,200 (.06 x $120,000). Subtracted from the total commission of $9,000, it leaves an additional balance of $1,800.

Since that portion was paid at the rate of 4%, dividing $1,800 by .04 yields the home's second cost component of $45,000. Add that to $120,000 and the home's total selling price was $165,000.

Know more about commission with the help of the given link:

brainly.com/question/20987196

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8 0

2 years ago

Consider a 11-period binomial model with r=1.02r=1.02, s_0 = 100s

FromTheMoon [43]

The value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694

<h3>European call option</h3>

Given:

R=1.02

S0 = 100

u=1/d= 1.05

Strike(k) = 102

First step

Upside Price = u × S0

Upside Price = 1.05 × 100

Upside Price = 105

Downside Price = S0/u

Downside Price= 100×1/1.05

Downside Price= 95.238

Upside Payoff = upside price - strike rate

Upside Payoff =(105 - 102)

Upside Payoff = 3

Second step

Upside probability=(r - q) / u - d

Upside probability=1.02- (1/1.05)÷ 1.05- (1/1.05)

Upside probability=0.0676190/0.0976190

Upside probability=0.692

Probability of downside = 1 - p(upside)

Probability of downside = 1 - 0.692

Probability of downside = 0.30731722

Third step

European call option=[0.692×3+0.30731722×0]×1/100

European call option=2.03529

Let B represent the Dollar to invest

105D -1.05B=3

95.238D-1.02B=0

Solving for B

B=$28.694

Therefore the value of a European call option on the stock with strike k=102k=102 is: 2.03529 and the amount of dollar to invest in the cash account is $28.694

Learn more about European call option here:brainly.com/question/16998902

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4 0

2 years ago

The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility

Dima020 [189]

The marginal utility of the third Pepsi is 8 units of utility

Explanation:

Marginal utility attempts to measure the additionally fulfilled use of extra products or services by a customer.

Economists use the idea of marginal demand to assess how much a individual good is likely to pay.

The complete utility of that first two Pepsi is equal to 30(= 18 + 12).

Thus, the marginal value of the third Pepsi is equal to 8 (= 38-30).

5 0

3 years ago

Mills Corporation acquired as a long-term investment $290 million of 8% bonds, dated July 1, on July 1, 2021. Company management

kow [346]

Answer:

Journal Entries are given below

Explanation:

Mills Corporation-journal Entries

Date Particulars Debit (In Miln) Credit (in Mln)

01-Jul-21 Bond Investment $290.00

Investment premium $50.00

Cash $340.00

Investment recorded

31-Dec-21 Cash ($290 * 8% * 6/12) $11.60

Premium bond investment $1.40

Interest revenue ($340*6%*6/12) $10.20

Revenue recognized for bond interest and amortization of discount.

31-Dec-21 Unrealized holding gain or loss $8.60

Fair value adjustment ($340 - $330 - $1.40) $8.60

investment recorded at fair value.

02-Jan-19 Fair value adjustment Dr $8.60

Reclassification adjustment - $8.60

Fair value adjustment at the time of sale

02-Jan-19 Cash $290.00

Loss on sale of investment $48.60

bond investment premium $48.60

Investment in Bond $290.00

Sale of investment.

3 0

3 years ago