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3 years ago

An increase in the riskiness of a particular security would not affect:______.

Business

1 answer:

kap26 [50]3 years ago

5 0

Answer:

Explanation:

Inflation is a persistent rise in general price level.

When inflation is expected, Investors ask for an increase in nominal interest rate in order to maintain the value of investments.

When a security becomes more risky, the chances of default of the security increases, so investors ask for an higher total return in order to compensate for the increased risk of default.

Risk premium increases with the increase in risk of a security

Investors are less willing to hold the bond because there is the risk that the security won't be able to make the contractual payments

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Wind Fall, a manufacturer of leaf blowers, began operations this year. During this year, the company produced 10,000 leaf blower

Citrus2011 [14]

Answer: Option (a) $146,500 is correct.

Explanation:

Company produced = 10,000 leaf blowers

Company produced sold = 8,500 leaf blowers

Income statement of year-end:

Sales = $ 382,500

Cost of goods sold = 170,000

Gross margin = $ 212,500

Selling and administrative expenses = 60000

Net income = $ 152,500

Production costs per leaf blower total = $20

Variable cost of goods sold = 8500 × $16 = $136000

Variable selling and administrative expenses = 15% of 60000 = $9000

Fixed production Cost = 10000 × $4 = 40000

Fixed Selling & Administrative expenses = (100% - 15%) of 60000 = $51000

∴ Net income under variable costing = sales - Variable cost of goods sold - Variable selling and administrative expenses - Fixed production Cost - Fixed Selling & Administrative expenses

= 382,500 - 136000 - 9000 - 40000 - 51000

= 146500

4 0

3 years ago

What is your opinion on the saying "If it doesn't challenge you, it doesn't change you"?

yawa3891 [41]

Answer:

I believe this saying refers to how we need challenges in our lives so that we can experience failure and learn from it.

5 0

3 years ago

Which of the following determines the process that a company will use to create its product? Group of answer choices a firm's mu

tekilochka [14]

Answer:

The answer is a firm's business level strategy

Explanation:

A strategy is a blueprint or a plan which spells out the major policies of an organisation, its goals and actions that will enables it to achieve the organisational objectives.

A firm business level strategy is a tool aimed at improving the competitive position of a firm's products within the market segment or industry that the firm operates. It focuses on how a firm will satisfy customer's needs and gain competitiveness in the market in which it operates by exploiting opportunities in market.

6 0

3 years ago

Mister Plow has contracted to perform snow removal services for the city of Springfield. Record snowfall has more than doubled t

Marina86 [1]

Answer:

B. a fixed-price contract.

Explanation:

"A fixed price contract places minimum administrative burden on the contracting parties, but subjects the contractor to the maximum risk arising from full responsibility for all cost escalations. Also called firm price contract."

Mr. Plow couldn't come back to Springfield because he took full responsability for all cost escalations.

Reference: WebFinance Inc. “What Is Fixed Price Contract? Definition and Meaning.” BusinessDictionary.com, 2019

3 0

2 years ago

An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume that the employee wo

ANTONII [103]

Answer:

Gross pay for the week is $1,500

Net pay for the week is $1,043

Explanation:

The gross pay is computed thus:

Normal rate pay 40 hrs*$24 =$960

Above normal pay(55-40)*$24*1.5 =$540

Gross pay $1,500

Deductions:

Social security(6.0%*$1,500) ($90)

Medicare(1.5%*$1,500) ($22.5)

Federal income tax ($345)

Net pay for the week $1,043

The net pay for the week is gross pay less social security tax,medicare as well as the federal income tax,$1043 is the employee net pay for the week

4 0

2 years ago