Answer:
true
Explanation:
Junk bonds can be defined as the bonds that require a higher default risk than most corporate and government issued bonds. A bond is indeed a debt or promise to pay interest payments to investors in return for purchasing the bond and the return of the invested principal.
Junk bonds depict debt issued by financially struggling companies with a significant risk to defaulting or failing to pay even their own monthly payments or reimbursing the principal to lenders. Thus, from the above we can conclude that the given statement is true.
Answer:
A) 30
Explanation:
to determine in how many years the economy will double with an 8% growth rate, we can use the rule of 72. The rule of 72 basically works by dividing 72 by the compounding growth rate to determine the number of years it will take an investment to double.
The rule of 72 works well when growth rate is between 6-10%, at 8% it is quite exact. For lower growth rates you should use the rule of 70 which is basically the same but instead of using 72, you use 70. For growth rates over 10% you should use 69.3.
the number of years for the economy to double = 72/8 = 9 years, so 9 plus 20 = 29 years. Since the question asks at what age the economy should have more than doubled, it would be a little over 29, and in this case it is 30.
You can always check which number is more exact calculating 1.08⁹ = 1.999
Answer:
Please see answers below
Explanation:
A. For break even point
= fixed expenses - Contribution margin per unit
Where,
Contribution margin per unit = Sales per unit - Variable cost per unit
= $11 - $4
= $7
Therefore,
Break even points in unit = $58,800 ÷ $7
= 8,400 pizzas
B. Target profit
The break even point = Fixed costs expenses + Target profit / Contribution margin per unit
= ($58,800 + $54,000) / $7
= $112,800 / $7
= 16,114 pizzas
C. Margin of safety in dollars
= (Total sales - Break even in sales) * Selling price per unit
= ( 9,900 - 8,400 ) * $11
= 1,500 * $11
= $16,500
D. Contribution margin in lay man's term.
Contribution margin is when a firm makes or produces a product and then sold it, the difference that is left after deducting variable costs(costs associated with the sales like cost of raw materials used in producing the product) from the the sales of such product is the contribution margin.
Answer:
Explanation:
a)
It is known that,
P(Sat) = 0.35
P(Sun) = 0.30
P(no rain on Sat) = 1 - 0.35
P(no rain on Sun) = 1 - 0.30
So P(rains on the weekend) = 1 - P(no rain on Sat) P(no rain on Sun) =
= 1 - (1-0.35)(1-0.30) = 0.545
b)
P(Sat Sun) = P(rains on Sat) P(rains on Sun) + P(rains on Sat) P(no rains on Sun) = 0.35*0.30 + 0.35*(1-0.30) = 0.35
