Answer:
1. Real risk-free rate.
2. Nominal risk free-rate.
3. Inflation premium.
4. Liquidity risk premium.
5. Liquidity risk premium.
6. Maturity risk premium.
Explanation:
Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;
1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*
2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.
3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.
4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.
5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.
6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.
Answer:
Unitary cost= $46.4 per unit
Explanation:
Giving the following information:
Direct materials $9.60 per unit
Direct labor $19.60 per unit
Overhead costs for the year:
Variable overhead $9.60 per unit
Fixed overhead $121,600
Units produced 16,000 units
Under absorption costing, the fixed overhead is allocated to the cost of the product. Therefore, we need to calculate the unitary fixed overhead.
Unitary fixed overhead= 121,600/16,000= $7.6
Now, we can calculate the unitary cost of production:
Unitary cost= direct material + direct labor + total overhead
Unitary cost= 9.6 + 19.6 + 9.6 + 7.6= $46.4 per unit
Answer:
opinion leaders
Explanation:
Since in the question it is mentioned that the Fitwear Inc i.e. a footwear of sporting products and apparel company also it established a new line of football cleats. In addition to this, they also believes that celebrities could influence the buying decision of the customers so here the football stars would be represent as an opinion leaders as they are considered as an individual that influence the people in general
Grant. A grant, is a form of financial aid that doesn’t have to be repaid.
