Answer:
$13000
Explanation:
There are two types of incomes; disposable income that is the income after paying income tax, and discretionary income that is the income after paying income taxes and necessities. Overall, the Manuel Acala made $28000; he paid $5000 in taxes.
Disposable income= $28000-$5000 = $23000
He spent $10000 on food
Discretionary income = $23000-$10000= $13000
Answer:
Additional premium is 3%
Explanation:
Without debt the shareholders' rate is computed thus:
Ke=Rf+beta*(Mrp-Rf)
Ke=4.5%+1.0*(5%)
Ke=9.50%
With debt financing added to the capital structure, the equity beta changes to 1.6,the shareholders' expected return is computed thus:
Ke=4.5%+1.6*(5%)
Ke=12.5%
The additional premium required is the increase in expected return of 3%(12.5%-9.5%)
The 3% is to compensate the equity shareholders for taking the risk of getting little or no dividends at all because the debt-holders interest must be paid first
The insurance coverage in a variable life insurance policy may vary based on the value of the invest subaccounts.
In a variable life insurance policy, the underlying cash value will increase or decrease depending on market conditions. The advantage of this approach is that the owner of the policy has a very good chance of making investment gains if they hold the contract for longer than a decade. The risk for the owner of the policy is that there is no guarantee in the stock market.
Answer:
B
Explanation:
The marginal cost of producing food is $25, which is greater than the price of selling the food.
At this point the firm is incurring a loss. In order to improve profit margins, the firm should reduce the amount of meals been produced, so that profit would increase