Answer:
a) 15.33%
b) 16.4%
Explanation:
Data provided in the question:
Annual interest rate = 10 percent
Additional cost of maintaining a field warehouse = $16,000 per year.
Now,
Annual financing cost
= [ ( Interest cost + Additional cost ) ÷ Usable funds ] × 100%
For a) Amount borrowed = $300,000
Annual financing cost
= [ ( 10% of $300,000 + $16,000 ) ÷ $300,000 ] × 100%
= 15.33%
For b) Amount borrowed = $250,000
Annual financing cost
= [ ( 10% of $250,000 + $16,000 ) ÷ $250,000] × 100%
= 16.4%
Answer:<u><em>If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. </em></u>
Explanation:
If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. In the case of higher MR , the maximum profit will come about at the level of where MR is equal to the MC. So in this case to increase the profit, MR i,e, also the price can be lower to the level of MC to sell more commodity and earn higher profits.
Answer:
The maturity risk premium is 1.0%.
Explanation:
The maturity risk premium or the 2-year security can be calculated as follows:
Maturity Risk Premium = Yield of the treasury note - Nominal risk free Interest rate
Nominal risk free Interest rate = Real risk-free rate of interest + Expected inflation = 3% + 2% = 5%
Therefore;
Maturity Risk Premium = 6.0% - 5.0% = 1.0%
Therefore, the maturity risk premium or the 2-year security is 1.0%.
Answer:
A) $102,000
Explanation:
The computation of the amount used today for preparing the operating budget is shown below:
= Contract value × forward rate
= $100,000 × $1.02
= $102,000
For computing this, we consider the forward rate and the same is multiplied with the contract value so that the correct amount can come.
All other information which is given is not relevant. Hence, ignored it
Answer: Task Identity
Explanation:
Task identity is referred to as or known as an overall extent that a task is done from its start point to the finish point. The overall degree to which result is visible or predicted. Task identity is known to be a critical and an important element of the job satisfaction. Task identity is referred to as a vital element of a job characteristic alongside skill variety, task significance, feedback. and autonomy.