Answer:
Explanation:
a)
Year percentage increase
2011 21.21162
2012 14.35054
2013 20.62696
b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to; Decline
c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X
d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.
Answer:
d. a monopoly firm reducing its price in an attempt to maintain its monopoly.
Explanation:
In a competitive system, a firm practices predatory pricing when it charges prices below its costs in order to eliminate competitors. When the prevailing system is a monopoly, the firm is the only company providing the good and it can practice predatory pricing in the short term to prevent a competitor from entering the market. Thus the firm remains monopolistic.
Externality is divided into 2 parts:
External Cost or External Benefit.
It is either a cost or benefit incur to someone who did not choose to incur that cost or benefit
For eg:A stone crusher incur external cost which is pollution that affect people living nearby.
Answer:
Bond Price= $26,042.12
Explanation:
Giving the following information:
Coupon= (0.044/2)*30,000= $660
YTM= 0.068/2= 0.034
Time to maturity= 7*2= 14 semesters
Face value= $30,000
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 660*{[1 - (1.034^-14)] / 0.034} + [30,000 /(1.034^14)]
Bond Price= 7,256.14 + 18,785.98
Bond Price= $26,042.12
Answer:
The cash flow from assets is 4,789
The cash flow to creditors is - 530
The cash flow to stockholders is 15
Explanation:
Please kindly note that I will calculate the increase and decrease as followings:
Increase = ending – beginning
Decrease = beginning - ending
The cash flow from assets = increase in net fixed assets – increase in depreciation = (77,850 - 72,953) – (2,564 - 2,456 ) = 4,789
The cash flow to creditors = decrease in payables + decrease in short-term notes payable = (6,317 - 6,880) + (1,754 - 1,721) = - 530
The cash flow to stockholders = increase in dividends = 2,394 - 2,379 = 15
