Answer:
The correct answer is "12,500 units" and "$100 per unit".
Explanation:
Given:
Selling price,
= $10 per unit
Variable cost per unit,
= $6 per unit
Fixed cost,
= 30,000
Desired profit,
= 20,000
Now,
The contribution margin per unit will be:
= 
= 
= 
($) per unit
The required units will be:
= 
= 
= 
= 
Now,
The contribution margin per composite unit will be:
= 
= 
= 
($) per unit
Answer:
a. Financing for public corporations must flow through financial markets.
FALSE, it can flow through financial markets or financial intermediaries.
b. Financing for private corporations must flow through financial intermediaries.
FALSE, it can flow through financial markets or financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
FALSE, they are traded in many different markets around the world.
d. Derivative markets are a major source of finance for many corporations.
FALSE, the major source of financing for corporations are stock markets.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
Answer:
5.925%
Explanation:
For computing the cost of debt, first we have to determine the YTM by using the Rate formula that is shown in the attachment
Given that,
Present value = $1,050
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% = $80
NPER = 20 year - 1 year = 19 year
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 7.50%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.50% × ( 1 - 0.21)
= 5.925%
Answer:
a. Jenna and Mary are both frictionally unemployed.
Explanation:
Frictional unemployment is short-term in nature and arises as workers search for their first jobs or are moving between jobs. An example of frictional unemployment is a fresh graduate searching for their first employment. Frictional unemployment is the natural unemployment in the economy. It is caused by factors that lead to economic under-performance.
Shifts in the economy cause structural unemployment. It occurs when the skills available are not suited for the current job openings. Jenna and Mary have not been affected by changes in the economy. Their unemployment is natural and temporally.
C) They are income distributed only to retirees who have worked a certain amount of years. A pension plan provides for future retirement income based on the employee's earnings and length of service with the company. This type of pension plan is termed as a defined benefit plan.
