Who manages private company

Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest

tiny-mole [99]

Answer:

A: The supply of loanable funds curve

B: left

C: Increase

Explanation:

If the tax rate on interest earned on savings deposits rises to 25% then the supply of loanable funds curve will shift to the left causing the equilibrium interest rate to slide upwards (or increase).

The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.

Cheers!

8 0

3 years ago

Merone Company allocates materials handling cost to the company's two products using the below data: Modular Homes Prefab Barns

Lady_Fox [76]

Answer:

Modular homes= $182,325

Explanation:

Giving the following information:

Modular Homes - Prefab Barns

Total expected material moves 500 100

The total materials handling cost for the year is expected to be $218,790.

To calculate the allocated costs to each product line, first, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 218,790/600

Predetermined manufacturing overhead rate= $364.65 per move

Now, we can allocate overhead:

Modular homes= 364.65*500= $182,325

Prefab Barnes= 364.65*100= $36,465

3 0

3 years ago

Gabriele Enterprises has bonds on the market making annual payments, with nine years to maturity, a par value of $1,000, and sel

Ulleksa [173]

Answer:

5.52%

Explanation:

For computing the coupon rate we first have to determine the PMT by applying the PMT formula

Given that,

Present value = $954

Future value = $1,000

Rate of interest = 6.2%

NPER = 9 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $55.18

Now the coupon rate is

= $55.18 ÷ $1,000

= 5.52%

7 0

4 years ago

A corporate bond has 22 years to maturity, a face value of $1,000, a coupon rate of 4.6% and pays interest semiannually. The ann

julia-pushkina [17]

Answer:

a. The answer is: $1,008.40

b. The bond's YTM is 3.343%

c. The current yield is 3.826%

Explanation:

a. Bond price formula: ∑(C* / (1+YTM) $n$ )

The price of the bond Intro A with i=1,2...10 is:

∑($1,000 x 3.4% / (1 + 3.3%) $i$ ) = $1,008.40

b. The price of the corporate bond which has 22 years to maturity is: $1,202.20

Given that the bond is trading at par value, the bond's YTM is:

[Annual Interest Payment + ((Face Value – Current Price) / (Years to Maturity))] / ( ( Face Value + Current Price ) / 2 )

= [$1,000 x 4.6% + (($1,000 - $1,202.20) / 22)] / (($1,000 + $1,202.20) /2)

= 3.343%

c. The bond's current yield is:

Annual Interest Payment / Current Price = $46 / $1,202.2 = 3.826%

5 0

3 years ago

The roles of money Larry just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down p

Schach [20]

Answer and Explanation:=

Medium of exchange - It is used to enable the sale and purchase between the parties. It represents the standard of value that is necessary to accept all the parties.

Larry writes a check for $4,000. It is a medium of exchange because it shows trade of goods between Larry and the car seller.

Unit of account - It gives permission to do the differentiation between two things.

Larry can easily differentiate the price of the super is more than the price of duper. It is unit of account because he knows the value of the super and duper.

Store of value - It is the value that can be saved and exchanged for a long time period.

Larry has saved checking amount is $4000. It is store of value because it is saved amount.

6 0

3 years ago