Answer:
The correct answer is option C.
Explanation:
Market failure refers to the situation when the market is not able to efficiently allocate resources and the government has to intervene. Market failure generally happens because of the presence of externalities.
When the marginal social cost is greater than the ability and willingness to pay, the market will fail to optimally allocate resources. The government, as a result, will intervene.
The government will use vouchers which will cause the marginal private benefit curve to shift upwards by the size of the per-unit voucher.
If a company uses $1,510 of its cash to purchase supplies, the effect on the accounting equation would be One asset increases $1,510 and another asset decreases $1,510, causing no effect.
The relationship between an entity's assets, liabilities, and owner's equity are represented by the basic accounting equation, often known as the balance sheet equation. It serves as the system's cornerstone for double-entry bookkeeping. The total debits and total credit for each transaction are equal.
There are three possible arrangements for the accounting equation:
- Assets = Liabilities + Owner's Capital - Owner's Drawings + Revenues - Expenses.
- Owner's equity = Assets - Liabilities.
- Net Worth = Assets - Liabilities.
The accounting equation makes sure that every entry in the books and records is verified and that each obligation (or expense) and its associated source, or each item of revenue (or asset) and its source, can be independently verified.
To know more about accounting equations refer to: brainly.com/question/14689492
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Answer:
Ans. The price of the bond immediately after it makes its first coupon payment is $1,068.02
Explanation:
Hi, we have to bring to present value the remaining cash flows, that is 9 coupons and its face value, so we need to use the following equation.
Where:
Coupon = 0.07*$1,000=$70
YTM = Yield to maturity, in our case 6% or 0.06
n = 9 (since the bond is paying every year and there are 9 years left until maturity)
Face Value= $1,000.
Everything should look like this
Therefore:
So, the price of this bond right after paying its first coupon is $1,068.02
Best of luck.
I think that A is the answer
