Answer:The minimum number of bonds it must sell to raise the money it needs will be 73,242 bonds
Explanation:
Number of bonds = Amount need to expand business / Bond price
But
Bond price = $1,000 / [1 + (0.0575 / 2)^(15 × 2)
Bond price = $1,000 / 1.02875 ^ 30
Bond price = $1,000 /2.340
Bond price = $427.350
Therefore the Number of bonds = $31, 300,000 / $427.350
Number of bonds= 73,242 bonds
The minimum number of bonds it must sell to raise the money it needs will be 73,242 bonds
Given:
Marginal propensity to consume (MPC) = 0.8
Equilibrium real output = $500 billion
Full-employment output = $540 billion
Find:
Change in government spending ΔG = ?
Computation:
Change in output ΔY = Full-employment output - Equilibrium real output
Change in output ΔY = $540 billion - $500 billion
Change in output ΔY = $40 billion
Change in output ΔY = [1 / (1 - MPC)] × ΔG
$40 billion = [1 / (1 - 0.8)] × ΔG
$40 billion = [1 / (0.2)] × ΔG
$40 billion = [5] × ΔG
ΔG = $40 billion / 5
ΔG = $8 billion
Change in government spending ΔG = $8 billion.
Answer:
5.6%
Explanation:
Internal growth rate can be calculated as below:
Internal growth rate = (Return on asset x Retention Rate)/[1 - (Return on asset x Retention Rate)]
Retention rate = 1 - Payout ratio = 1 - 30% = 70%
Return on asset = Net income/Asset = 82,490/1,089,500 = 7.6%
Putting all the number together, we have:
Sustainable growth rate = (7.6% x 70%)/[1 - (7.6% x 70%)] = 5.6%
Answer:
A) a product's performance characteristics and attributes for which customers are willing to pay.
Explanation:
Only customers can assign value to a product. A manufacturer can set a product's price, but if the customers do not accept that price and assign a lower value to the product, then they will not purchase it. This applies to every single market situation (except for command economies) including monopolies, free markets, monopolistic competition, etc. Customers value a product depending on its performance characteristics and attributes, e.g. sports cars are value for being fast, Volvos for being safe, compared to other similar products. Customers do not value unique one of a kind characteristics, they value relative characteristics, i.e. the best product has a higher value.
Answer:
interest rate = 9.01%
Explanation:
given data
real risk-free rate = 2%
maturity risk premium = zero
year 1 Treasury bond yield r1 = 7%
year 2 Treasury bond yield r2 = 8%
solution
we get here year 1 interest rate expected for year 2 is that is express as
interest rate = 
interest rate = 
interest rate = 1.090093 - 1
interest rate = 9.01%
