Answer:
Stated yield is 11.04%
expected yield is 5.78%
Explanation:
The expected yield to maturity can be computed using the rate formula in excel which is given below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay which is 13
pmt is the amount of coupon interest the bond pays which is $1000*10%=$100
pv is the current price of the bond which is $930
fv is the face value of $1000
=rate(13,100,-930,1000)=11.04%
However the expected yield has the coupon interest reduced to one -half as calculated below:
=rate(13,100*0.5,-930,1000)=5.78%
Answer:
D. have outputs that are too small to influence market price and thus take it as given.
Explanation:
In perfect competition there are large number of firms and individual contribution is less in industry output , it means that firms have output which are too small to influence the market price ans thus it is as given .
Hence ,
The firms which exhibit price - taking behavior have the output which is too small to be influenced by the market price , and therefore remains as it is .
Answer:
False
Explanation:
Retained earnings can be defined as the amount of money or income left after a firm or organization as paid out it dividends to their shareholders.
Retained earnings are also an organisation's profit which they retained or keep and this earning is reinvested for other purposes. Such purposes include: Future expansion of the the organization. Retained earnings are a form of liability to a firm.
Funds acquired by the firm through retained earnings (similar to their free cash flow), have cost attached to them. This is because the cost of retained earnings is equivalent to rate of return on re-investment of dividends of shareholders that is paid by the organization. Hence, retained earnings is equivalent to the cost of equity.
Answer:
b.(1/2, 1/2)
Explanation:
If one vendor is located at “1/2” then the best possible respond of the other vendor is “1/2”, both of them of capture the equal share of the market.
Therefore, Nash equilibrium is (1/2 , 1/2).
Answer:
$505,000
Explanation:
Cost of asset includes all the cost involved to acquire and construct the asset. In simple term all the costs that are necessary to make the asset usable are capitalised and added to the cost of the asset.
There are many cost in this question which need to be capitalized. Some is relevant to the building and other to the land account.
The costs specifically associated with the building account are
Construction of Building = $500,000
Construction Permit of Building = $5,000
Total cost to be capitalized in building account = $500,000 + $5,000 = $505,000
Delinquent property taxes is applicable on the land inclusive of building will incur even if there is no, building constructed on the land. So, this tax will be included in the Land value.
