Answer:
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
Explanation:
Current price of gold=$1,400 per ounce
Forward price=$1,500
The arbitrageur can either pay the forward price or borrow $1400 and pay the interest of 4% in a year. Consider option 1 paying the forward price of 1500
Option 1
Since there are no additional costs, the total cost for buying the gold=forward price=$1,500
Option 2
If the arbitrageur borrows the 1400 to pay for the gold now, then pay the interest in 1 year;
The total cost=Amount borrowed+interest accrued in 1 year
Total cost=1400+(4%×1400)
1400+((4/100)×1400)
1400+56=$1456
Since there are no additional costs, option 2=$1456
If we compare option 1 to option 2, we notice that option 2 is slightly cheaper than option 1 by $44
(Option 1-Option 2)=(1500-1456)=$44
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
Answer: a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs.
Explanation:
When the cost of production report is being used to analyze change in direct materials cost per equivalent unit when compared to the conversion cost per equivalent unit, we should note that an investigation may end up showing that the fluctuation in the the direct materials costs which then brings about an increase or a decrease.
Therefore, the correct option is A "may increase while conversion costs decrease because the two are separately calculated and depend on separate costs".
Answer:
The correct answer is option a.
Explanation:
The willingness to pay for a product can be defined as the maximum amount an individual is willing to procure or obtain a product. The price of a product lies between a consumer's willingness to pay and a seller's willingness to accept.
The willingness to accept is the minimum amount a seller is willing to accept to let go of a product. Willingness to pay indicates how valuable good is for the buyer.
Manufacturing more than there is demand means that the day when the demand stops, you will be left with a bunch of inventory you cant sell or get rid of
Answer:
Democratic leadership style
Explanation:
She can develop a democratic leadership style within her which can help her accomplish her tasks as a manager and also help her inculcate this very leadership style which can be beneficial for her to go higher the ladder in organizations management.
Democratic leadership style would help her show the inexperienced employee some route out to get skilled and follow subordinates to improve work. Collaborative working with the employees provides managers with much needed team dynamics. Also, democratic leadership styles makes managers gather much needed skills which are essential for the leaders of the organization.
