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3 years ago

Explain how economists use the measure “gross domestic product”

1 answer:

8 0

The Gross Domestic Product measures<span> the value of economic activity within a country. Strictly </span>defined<span>, GDP is the sum of the market values, or prices, of all final goods and services produced in an economy during a period of time.</span>

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5-year Treasury bonds yield 6.1%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year T-bonds is 0

Dahasolnce [82]

3.20 is the real risk-free rate

The risk-free rate of return, commonly abbreviated as the risk-free rate, is the rate of return on a hypothetical investment with scheduled payments over a set period of time that is assumed to meet all payment obligations.

Subtract the inflation rate from the yield on the Treasury bond that corresponds to the duration of your investment to calculate the real risk-free rate.

The risk-free rate determines the return an investor can expect from an investment over a specified time period. A risk-free rate is calculated by deducting the current inflation rate from the total yield of the treasury bond that corresponds to the investment duration.

To know more about risk-free rate follow the link:

brainly.com/question/19568670

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5 0

2 years ago

Your company plans to spend $2,350,000 in cash to build a plant that will produce benefits with a total present value of $4,575,

Leto [7]

Answer:

$200,000

Explanation:

Data provided in the question:

Amount willing to spend in cash to build the plant = $2,350,000

Total present value of the benefits produced = $4,575,000

Purchasing cost of the land = $900,000

Present value of the land = $2,025,000

Now,

Total present value of investment

= Amount spent to build the plant + Present value of the land

= $2,350,000 + $2,025,000

= $4,375,000

Therefore,

The net present value of the proposed plant

= Total present value of the benefits - Total present value of investment

= $4,575,000 - $4,375,000

= $200,000

6 0

3 years ago

Candle Stix estimates that 2% of the $100,000 balance in accounts receivable is uncollectible. Prior to year-end adjusting entri

Mnenie [13.5K]

Answer:

$97,600

Explanation:

First, we need to get the value for uncollectible in accounts receivable

= 2% Multiplied by balance in accounts receivable as uncollectible

= 2% × 100,000

= $2,000

We will then subtract the balance above which is the uncollectible from the accounts receivable

= $100,000 - $2,000

= $98,000

The net realizable value would the be ;

= $98,000 - $400

= $97,600

8 0

3 years ago

Identify at least one type of firm that might exhibit low correlations of returns with the overall stock market? explain why the

svlad2 [7]

<span>One firm that is historically low and deals with negatively correlated stock markets is Gold Extraction Companies. They are have very low correction with overall stock markets. The basic reason for this low correlation is that, as the stock market become bearish, investor sentiment becomes weak, due to which most of the investors withdraw their money from stock market. Now once investor has withdrawn the money from stock market , they search on safe investments which will provide them good reruns, Gold is one of the investment which is relatively safe and provide high returns. Thus withdrawn money from the share market is invested in gold by investors. Thus Gold prices and companies related to extraction of gold have very less correlation to the gold.</span>

6 0

3 years ago

Joe Corporation produces and sells two products. In the most recent month, Product C90B had sales of $19,950 and variable expens

8_murik_8 [283]

Answer:

Decrease

Explanation:

Calculation to determine overall break-even point for the entire company

Contribution margin for C90B = ($19,950-

$5,985)/$19,950

Contribution margin for C90B = 70%

Contribution margin for Y45E =( $26,190- $10,476)/$26,190

Contribution margin for Y45E= 60%

Therefore Based on the above calculation if the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company

Would DECREASE reason been that C90B have more contribution margin ratio of 70% compare to Y45E which had contribution margin ratio of 60%

4 0

3 years ago