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3 years ago

Which of the following is generally true about savings vehicles? A

1 answer:

8 0

If you're likely to be dipping into some of that money to fix the house, take a vacation, or buy holiday presents, don't put too much into a long-term CD. Like savings, checking, and money market accounts, CDs are FDIC insured for up to $100,000

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The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP

Mrac [35]

Answer:

Explanation:

The chart below gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP for both years. Use 2017 as the base year.

Year 2016 2017

Price Quantity Price Quantity

Ice Cream $7.00 600 $3.00 400

Blue Jeans $70.00 20 $20.00 90

Laptops $300.00 5 $300.00 5

2016 nominal GDP = $_(7 x 600) + (70 x 20) + (300 x 5)_ = $7,100

2017 nominal GDP = $_(3 x 400)+(20 x 90) + (300 x 5)_ = $4,500

2016 real GDP = $__(7100-4500)/ 4500)) / change in ice cream price of 50%+ change in blue jean price of (70-20/20) 250%_______

= 0.57/3 = 0.19% growth. Technically the economy was better in 2016 than in 2017.

2017 real GDP = will be same as nominal, hence no growth since this is the base year

4 0

3 years ago

The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $

diamong [38]

Answer:

5375

Explanation:

Given that:

Initial Fixed assets costing = $962000

Annual fixed costs = $403400

Variable cost per unit = $123.60

Sales price per unit = $249.00

Discount rate = 14%

Tax rate = 21%

The contribution per unit = Sales price - Variable cost

= $(249.00 - 123.60)

= $125.40

The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.

Assuming that the sales level = p

i.e.

NPV = PV(of inflows - of outflows)

Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate

= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate

where;

depreciation = initial fixed assest cost/ lifetime of the project

= (125.4p - 403400)*0.79 + (962000/6)*0.21

= (125.4p - 403400)*0.79 + (160333.33)*0.21

= (125.4p - 403400)*0.79 + 33670

Now, the PV of the inflows =PV factor(6 years, 14%) * inflows

$= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}$

$= inflows * 3.8887$

Replacing the value for inflows, we have:

$=((125.4p - 403400)*0.79 + 33670)* 3.8887$

The PV of the outflows = Initial Fixed asset cost = $962000

∴

Equating both together using:

PV(of inflows - of outflows) = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 = 962000

(99.066p - 318686 + 33670) * 3.8887 = 962000

(99.066p - 285016) * 3.8887 = 962000

385.24p - 1108341.72 = 962000

385.24p= 962000 + 1108341.72

385.24p= 2070341.72

p = 2070341.72 / 385.24

p ≅ 5375

6 0

3 years ago

He contract that contains provisions for surface leases related to a property is the _____.

vfiekz [6]

The contract that contains provisions for surface leases related to a property is the Farm and Ranch contract.

A void contract is a contract that fails a validity test and is therefore not a contract. A void contract is a contract that initially appears valid but may be terminated by a party deemed to have interfered in some way.

After a reasonable period of time, the contract is considered accepted and can no longer be objected to. Other examples include real estate contracts, attorney contracts, etc. If a contract is concluded without the free consent of the parties, it will be considered a void contract.

A voidable contract is a formal agreement between two parties that can be made unenforceable for a variety of legal reasons, including Errors, Misrepresentations, or Fraud. Excessive influence or coercion.

Learn more about contracts here brainly.com/question/984979

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8 0

2 years ago

firm has 2,000,000 shares of common stock outstanding with a market price of $2 per share. It has 2,000 bonds outstanding, each

Yuki888 [10]

Answer:

A Firm

The firm's WACC is:

= 12.16%

Explanation:

a) Data and Calculations:

Common Bonds

Stock

Outstanding shares/bonds 2,000,000 2,000

Market price per unit $2 $1,200

Total market value $4,000,000 $2,400,000

Total value of debt and equity = $6,400,000

Weight 62.5% 37.5% ($2,400/$6,400*100)

Cost of bonds (coupon rate) = 10%

Tax rate = 34%

Firm's beta = 1.5

Risk-free rate = 5%

Market risk premium = 7%

After-tax cost of bonds = 6.6% (1 - 0.34) * 10%

Cost of common stock =

Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 5% + 1.5 x (7%)

= 5% + 10.5%

= 15.5%

WACC = 15.5% * 62.5% + 6.6% * 37.5%

= 0.096875 + 0.02475

= 0.1216

= 12.16%

7 0

3 years ago

Describe how a small business might use innovation to create new jobs

bezimeni [28]

Answer:

they work hard and dedication

Explanation:

8 0

3 years ago