Answer:
The 1-day rate of return on the index = 5.36%
Explanation:
Index Value = Sum of (Outstanding Shares*Share Price)
q p mv q1 p1 mv1
640,000 16 10240000 640000 20 12800000
540,000 24 12960000 540000 22 11880000
240,000 55 <u>13200000</u> 240000 57 <u>13680000</u>
<u>36400000 </u> <u>38360000</u>
Note: q/q1 = no of shares, p = price per share, mv/mv1 = market value, p1 = changed price per share
Return = (Index Value Today - Index Value Yesterday)/Index Value Yesterday
Return = (38360000 - 36400000) / 36400000
Return = 0.05385
Return = 5.36%
Answer:
LIFO Periodic method
Explanation:
The LIFO means Last In First Out this means that item that have been stocked today would be sold first although there’s still some inventory from previous periods.
Using LIFO would result in lower ending inventory because closing inventory would be valued at low price which they had been bought assuming that there’s now a hick in price and goods in the warehouse were stocked when prices were low.
LIFO is used for the manipulation of profit.
Answer:
Economies of scale
Explanation:
Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.
Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.
Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.
Answer:
with the new rate we will pay in 58 months.
if there is 2% commision charge: 59.35 = 60 months
Explanation:
Currently we owe 10,000
This will be transfer to a new credit card with a rate of 6.2%
We are going to do monthly payment of 200 dollars each month
and we need to know the time it will take to pay the loan:
We use the formula for ordinary annuity and solve for time:
C $200.00
time n
rate 0.005166667 (6.2% rate divide into 12 months)
PV $10,000.0000
We arrenge the formula and solve as muhc as we can:
Now, we use logarithmics properties to solve for time:
-57.99227477 = 58 months
part B
If there is a charge of 2% then Principal = 10,000 x 102% = 10,200
we use that in the formula and solve:
-59.34880001 = 59.35 months
Answer:
true
Explanation:
tarrifs raise the price of foreign goods
