Which example envolves a real world restriction that can affect your decision making process?

New investors may want to consider _______ funds, which are mutual funds that invest in one particular kind of stock or a partic

Bond [772]

Answer:

B. index

Explanation:

New investors may want to consider to invest in index funds because they focus on a particular sector of the market or a particular type of bond, or indexes may follow and try to reciprocate the market for eg the. The purpose of an index fund is to copy and reciprocate the performance of a market index .

3 0

3 years ago

According to the classical theory of inflation, an increase in the money supply would cause _____ to shift to the _______. Outpu

ASHA 777 [7]

Answer:

According to the classical theory of inflation, an increase in the money supply would cause aggregate demand curve to shift to the right. Output would increase and price level would increase. However, in the long run, would shift to the left. Output would reduce and the price level would continue to increase.

Explanation:

Inflation occurs in an economy when the overall price level increases and the demand of goods and services increases.

the classical theory of inflation explains how the aggregate price level gets determined through the interaction between money supply and money demand.

Tn the classical theory of inflation:

Money is considered the asset which is utilized by people to purchase goods and services on a regular basis.
Their view is that the general price is determined by the total demand for and total supply of goods just as the price of any good is determined by the forces of demand and supply for it.
According to them inflation is a situation caused by excess demand, in which the total demand for goods as measured by the volume of money offered is in excess of supply of goods at prevailing prices.

5 0

3 years ago

Read 2 more answers

The number one reason for failure of new business is

Ipatiy [6.2K]

The number one reason for failure of a new business is poor management.

Hope that helped! (:

4 0

3 years ago

Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labo

dolphi86 [110]

Answer:

Part a. What is the variable cost per unit?

Variable Cost per Unit is $ 11.13+ $ 7.29 = $18.42

Part b. What are the total costs for the year?

Production for the year is 190000 units

Calculation of Total Production = Variable costs + Fixed Costs

= 190000 units × $18.42 + $875,000

=$ 4,374,800

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

The Company Breaks Even when

Total Sales Revenue = Total Production Costs

Total Sales Revenue = $44.99 × 190000

= $ 8,548,100

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

Total Production Costs = $4,374,800+$435000

= $4,809,800

Therefore accounting break-even point is $4,809,800 Sales

Explanation:

Part a. What is the variable cost per unit?

Variable Cost are costs which Vary with the level of Activity.

Part b. What are the total costs for the year?

Calculation of Total Production Costs= Variable costs + Fixed Costs

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

Break-Even Point is the Point when the company neither makes a profit or a loss

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

In simple terms the break even point in Sales Revenue is equal to all Variable plus fixed costs

5 0

3 years ago

At the present time, Water and Power Company (WPC) has 5-year noncallable bonds with a face value of $1,000 that are outstanding

kicyunya [14]

Answer:

6.53%

Explanation:

For computing the after cost of debt we need to use the RATE formula i.e to be shown in attached spreadsheet. Kindly find it below:

Given that,

Present value = $1,050.76

Future value or Face value = $1,000

PMT = 1,000 × 10% = $100

NPER = 5 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying this above formula

1. The pretax cost of debt is 8.70

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 8.70% × ( 1 - 0.25)

= 6.53%

6 0

2 years ago