Answer:
B) aliceland has an absolute advantage, but not comparative advantage, in producing food.
Explanation:
Aliceland has absolute advantage in the production of food because it produces more food (32) than Georgeland that produces (16). Aliceland doesn't have a comparative advantage because both lands have the same comparative advantage in the production of food.
Comparative advantage of Aliceland in food production = 16 / 32 = 0.5
Comparative advantage of Georgeland in food production = 8 / 16 = 0.5
Aliceland has absolute advantage in the production of food and cloth but no comparative advantage in either.
Georgeland doesn't have absolute or comparative advantage in the production of food and clothes.
I hope my answer helps you
Answer:
C.eight-year bond with 5.5% annual interest rate
Explanation:
The computation of the total options under each option is as follows:
As we assume the par value be $1,000
For Option A
Total interest
= 9.5% × $1,000 × 3 years
= $285
For Option B
Total interest is
= 7.25% × $1,000 × 4 years
= $290
For Option C
Total interest is
= 5.5% × $1,000 × 8 years
= $440
For Option D
Total interest is
= 6% × $1,000 × 6 years
= $360
As we can see that the option C contains high value of the total interest. So the same is to be selected
A)Degree of operating leverage=Contribution/EBIT
=6400,000/2140000=2.99.
B) Degree of operating leverage=Contribution/EBIT
=5600,000/1340000=4.18
C) Degree of operating leverage=Contribution/EBIT
=7600,000/1015000=7.49
One conclusion that companies can draw from examining operational leverage is that companies that minimize fixed costs can increase profits without changing selling prices, contribution margins, or unit sales.
The Operating Leverage formula is used to calculate a company's break-even point, helping to set a reasonable selling price that covers all costs and produces a profit. This gives you insight into how well your company is using fixed-cost items such as inventory and machinery to make a profit. The more profit a company can extract from the same amount of fixed assets, the higher its operational leverage.
Learn more about operating leverage at
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Complete question:
Today is January 1, 2009. The state of Iowa has offered your firm a subsidized loan. It will be in the amount of $10,000,000 at an interest rate of 5 percent and have ANNUAL (amortizing) payments over 3 years. The first payment is due today and your taxes are due January 1 of each year on the previous year's income. The yield to maturity on your firm's existing debt is 8 percent. What is the APV of this subsidized loan? If you rounded in your intermediate steps, the answer may be slightly different from what you got. Choose the closest.
A. -$3,497,224.43 B. $417,201.05 C.$840,797 D. None of the above
Answer:
$840,797 is the APV of this subsidized loan
Solution:
Input the loan in a financial equation first and resolve the payment:
PV=10,000,000
N= 3I = 5%
PMT = 3,672,085
Now, find the APV of the loan:
CF0 = $10,000,000
CF1= -$3,502,085
= -$3,172,085 - .66 * $500,000CF2
= -$3,556,011CF3
= -$3,612,632I
= 8%
APV = $840,797
Answer:
Eminent domain for the public good.
Explanation:
He charged the branch manager because he didn't see eminent domain for public use.
In eminent domain the government, the government the government has the power to take private property for public use.
The bank is a public place and as such are required to have a public domain that is members of the public or for civic use. Such a party is likely going to be for public use or it could be delegated to third parties.