Net sales is computed by? taking:

When the demand curve for a good is vertical, it indicates that the demand for the good is perfectly inelastic ; a change in price has no effect on the quantity demanded.

Goods with perfect inelasticity usually have no or little close subsituites.

I hope my answer helps you

6 0

3 years ago

Your company currently has $ 1 comma 000 par, 6 % coupon bonds with 10 years to maturity and a price of $ 1 comma 078. If you w

Stella [2.4K]

Answer:

The next coupon rate that is needed to set is 5.00%

Explanation:

Solution

Recall that:

Your company presently has =$1,000 par

Coupon bonds = 6%

Maturity = 10 years

The next step is to find the coupon rate that is needed or required to set.

Now,

The number of semi annuals to maturity, NPER = (10 YEARS * 2)= 20

Semiannual coupon payments, PMT = ($1000 * 6%/2) = $30

The current selling price per bond (FV) = $1078

The maturity value at the end is = $1000

The semiannual compound type, = 0 (It is 0 if compounded at the end of each semiannual and is 1 if compounded at the start of each semiannual)

Semi annual interest rate is = 2.5%

Thus,

The number of semi annuals in a year is = 2

The annual coupon rate of bonds (new) = 2/50 % * 2

= 5.00%

It is important to note that the semi annual coupon rate is computed suing the excel function rate (nper, pmt, pv, fv, type),

Whereby

PV =1078

NPR = 20

PMT =30

FV = 1000

TYPE = 0.

3 0

3 years ago

Jarrod receives a scholarship of $18,500 from Riggers University to be used to pursue a bachelor's degree. He spends $12,000 on

kodGreya [7K]

Answer:

Jarrod exclude from his gross income of $13,500

Explanation:

The following items which are excluded from the gross income are:

1. Tuition = $12,000

2. Books and supplies = $1,500

The total amount would be equal to

= $12,000 + $1,500

= $13,500

These items would be excluded because the deduction is allowed for these items. Whereas, the room and personal expenses are taxable. Hence, it would be included in the gross income

8 0

3 years ago