Answer:
Option D is correct one.
<u>$12</u>
Explanation:
Consumer surplus is the difference between willingness to pay and market price.
Consumer surplus= (10-5) + (9-5) + (8-5)
= 5+4+3= 12
Answer:
0.4 or 40%
Explanation:
the formula used to calculate the reward variability ratio is:
reward variability ratio = (expected return - risk free rate) / standard deviation = (20% - 10%) / 25% = 10% / 25% = 0.4 = 40%
The reward variability ratio measures the return of a project, stock or investment, adjusted for its variability (standard deviation) compared to the risk free rate.
Loan 1 and Loan 2 have the same principal and interest rate but different monthly payments and total loan costs, therefore, the loan repayment periods would be different.
<h3>What is the loan repayment period?</h3>
The loan repayment period refers to the time it takes to repay a loan.
When the amount being repaid is smaller, the loan repayment period tends to be longer, and vice versa.
Data and Calculations:
Loan Repayment Principal Interest Rate Monthly Total cost
Period Payment of the loan
Loan 1 5 years $5,000 6.47 percent $98 $5,866
Loan 2 10 years $5,000 6.47 percent $57 $6,804
Thus, the loan repayment periods are affected by the monthly payments and total costs to reflect the loan terms.
Learn more about loan repayments at brainly.com/question/25599836
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Answer:
c. shows forecasts for the industry and for the firm.
Explanation:
Sales Forecasting is an estimation of a business's sales for the future, this can be calculated monthly, annually, etc. T<em>his forecasting's objective is to help the business to make informed decisions to improve their performance in managing their resources, workforce and cash flow. </em>
I hope you find this information suefun and interesting! Good luck!
Answer:
a. $1,320.88
b. $1,182.19
Explanation:
The computation is shown below:
a. For market value of the bond
Given that
Rate = 9%
NPER = 10
PMT = $1,000 * 14% = $140
FV = $1,000
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $1,320.88 i.e. equivalent to the market value of the bonds
b. Now the net price be
= Market price × (1 - flotation cost)
= $1,320.88 × (1 - 0.105)
= $1,182.19
