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NeTakaya
3 years ago
6

The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home

because they are assuming government will bail them out of a bad mortgage as it has done before.
T & F
Business
1 answer:
DENIUS [597]3 years ago
7 0

Answer: True

                                           

Explanation: In simple words, moral hazard refers to the situation when one party do not take proper care while being in a risky event knowing the fact that some other  party will bear the future potential loss if something wrong happens.

Insurance policies is one the major examples of moral hazard as the insured sometimes do not take proper care knowing the loss will be borne by the insurance company.

Hence from the above we can conclude that the given statement depicts moral hazard as the owners are taking too much risk knowing government will bail them out.

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Shiffon Electronics manufactures music player. Its costing system uses two cost categories, direct materials and conversion cost
sattari [20]

Answer:

$932 per unit

Explanation:

The computation of direct materials cost per equivalent unit is shown below:-

Work in process ending 100% complete in material = 840 + 290

= 1,130

Total cost = Direct material + Direct materials costs added during March

= $346,000 + $707,500

= $1,053,500

Material Equivalent unit cost = Total cost ÷ Units to account for

= $1,053,500 ÷ 1,130

= $932 per unit

7 0
3 years ago
The aim of​ _____________ is to produce high customer equity​, the total combined customer lifetime values of all of the​ compan
alekssr [168]
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3 years ago
When short-term investments appear in the balance sheet at their current market values, it is an exception to the ______ princip
Semenov [28]
Cost Principle, 
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5 0
2 years ago
Read 2 more answers
LRQ Inc. issued bonds on April 18, 2006. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of
ankoles [38]

Answer:

$857

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Both of these cash flows discounted and added to calculate the value of the bond.

According to given data

Face value of the bond is $1,000

Coupon payment = C = $1,000 x 5.5% = $55 annually = $27.5 semiannually

Number of periods = n = (April 18, 2036 - April 18, 2020) years x 2 = 16 x 2 period = 32 periods

Market Rate = 7% annually = 3.5% semiannually

Price of the bond is calculated by following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond = 27.5 x [ ( 1 - ( 1 + 3.5% )^-32 ) / 3.5% ] + [ $1,000 / ( 1 + 3.5% )^32 ]

Price of the Bond = $524.29 + $332.59 = $856.98 = $857

8 0
2 years ago
Liam, the photography editor of a national magazine, is looking through a series of pictures to find a model who seems strong an
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Liam should select a model whose face has an angular chin because in the given research of snap judgement about appearance angular chin conveys strong and competent. participants rated a large number of faces along different personality dimensions these two dimension are trustworthiness and dominance. 

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