The following information is for Chambersburg Corp. for 2018 and 2017. Chambersburg uses the straight-line depreciation method.

Less developed nations have high rates of unemployment.<br><br> TRUE<br><br> FALSE

alexira [117]

True.
Hope i helped out!

3 0

3 years ago

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If many firms enter the computer software industry and consequently bid up the price of programmers, then:

Lena [83]

Answer:

the correct option is C) If many firms enter the computer software industry and consequently bid up the price of programmers, then: the long-run industry supply curve will slope downward.

Explanation:

When many firm enter an industry, there is competition and the presence of multiple players will eventually cause the cost of production to decline.

In the short run, if many firms enter the computer software industry and consequently bid up the price of programmers, then the increase in participation will increase the number of software developed.

In the long run, industry supply curve will slop downwards indicating a price reduction.

4 0

3 years ago

Shares of Notung Cutlery Corp. closed 2010 at $75 per share. Notunghad 14.5 million shares outstanding. The assets are valued at

Kay [80]

Answer:

If you considered that outstanding shares are equal that total shares, then: market capitalization is $1.085 billions; market value added is $477.5 millions and the market-ti-book ratio is 1.78.

Explanation:

To get these numbers we calculate as follow: market capitalization = number of shares multiply by the price per share (75$ x 14.5 million); marked value added = market capitalization - (total assets - liabilities) [1.085 Bn - (1 Bn - 390 m)] ; and market-to-book ratio = market capitalization / book value (1.085bn/610m)

6 0

3 years ago

Minimum-wage laws can keep wagesa.a) above equilibrium and cause a surplus of labor.b) above equilibrium and cause a shortage of

Airida [17]

Answer:

The correct answer is option a.

Explanation:

Minimum wages can be defined as the minimum level of wages that an employer is supposed to pay to workers for their work. It cannot be reduced through an individual contract or collective agreement.

Minimum wages are fixed above the equilibrium level of wages. At this level, the demand for labor is lower while supply is more because of high wages. This creates surplus labor in the market.

4 0

3 years ago

Bond J has a coupon of 7.6 percent. Bond K has a coupon of 11.6 percent. Both bonds have 12 years to maturity and have a YTM of

elena55 [62]

Answer:

Bond J has a coupon of 7.6%

Bond K has a coupon of 11.6%

12 years to maturity and YTM of 8.2%

first we must determine the current market price of both bonds using the yield to maturity formula:

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 8.2%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

current market value of Bond J:

0.082 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.082 = 76 + [(1,000 - PV) / 12]

41 + 0.041PV = 76 + 83.33 - 0.083PV

0.124PV = 118.33

PV = 118.33 / 0.124 = $954.27

current market value of Bond K:

41 + 0.041PV = 116 + 83.33 - 0.083PV

0.124PV = 158.33

PV = 158.33 / 0.124 = $1,276.85

a. If interest rates suddenly rise by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 8.2% + 2.2% = 10.4%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

market value of Bond J:

0.102 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.102 = 76 + [(1,000 - PV) / 12]

102 + 0.051PV = 76 + 83.33 - 0.083PV

0.134PV = 157.33

PV = 57.33 / 0.134 = $427.84

market value of Bond K:

102 + 0.051PV = 116 + 83.33 - 0.083PV

0.134PV = 97.33

PV = 97.33 / 0.134 = $726.34

Bond J's market price will decrease by ($427.84 - $954.27) / $954.27 = -55.17%

Bond K's market price will decrease by ($726.34 - $1,276.85) / $1,276.85 = -43.11%

b. If interest rates suddenly fall by 2.2 percent, what is the percentage price change of these bonds?

YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]

YTM = 6%
C = coupon payment = $76 and $116
FV = face value or value at maturity = $1,000
PV = present value or current market value = ???
n = 12 years

current market value of Bond J:

0.06 = {76 + [(1,000 - PV) / 12]} / [(1,000 + PV) / 2]

[(1,000 + PV) / 2] x 0.06 = 76 + [(1,000 - PV) / 12]

30 + 0.030PV = 76 + 83.33 - 0.083PV

0.113PV = 129.33

PV = 129.33 / 0.113 = $1,144.51

current market value of Bond K:

30 + 0.030PV = 116 + 83.33 - 0.083PV

0.113PV = 169.33

PV = 169.33 / 0.113 = $1,498.50

Bond J's market price will increase by ($1,144.51 - $954.27) / $954.27 = 19.94%

Bond K's market price will increase by ($1,498.50 - $1,276.85) / $1,276.85 = 17.36%

8 0

3 years ago