Answer:
PV= $81,947.83
Explanation:
Giving the following information:
Future value= $95,000
Interest rate= 0.03
Number of periods= 5
To calculate the initial investment required to reach the objective, we need to use the following formula:
PV= FV/(1+i)^n
PV= 95,000/(1.03^5)
PV= $81,947.83
Answer:
Minimum Transfer Price is $3.50
Explanation:
The Minimum transfer price is calculated by adding the variable cost per unit with the opportunity cost. In this case where the clock division is not operating at full capacity then the opportunity cost would be considered as $0.
Moreover, the division would be able to avoid a $0.5 cost per clock. Therefore, the variable cost will be $3.50 ($4 - $0.5) after eliminating the $0.5.
Finally, the minimum transfer would as follows:
Minimum Transfer Price = Variable cost + Opportunity Cost
Minimum Transfer Price = $3.50 + $0
Minimum Transfer Price = $3.50
Answer:
Global Marketing
Explanation:
Based on this scenario, it seems that Yum! Brands is currently in the Global Marketing stage. In this, they decide on the best way to market their product/services in such a way that will maximize their reach as well as their profits Globally. These decisions are made so that their marketing is efficient in various geographic locations without having to specifically target different marketing campaigns in each location. All of which is created and controlled from within the company's home market.
Answer:
a. $125
b. $10,300
c. $10,425
Explanation:
a. The computation of the explicit cost is shown below:
Explicit cost = Purchase of office supplies + Monthly electricity bill
= $75 + $50
= $125
b. The computation of the implicit cost is shown below:
Implicit cost = Lost of salary + rent out amount lost
= $10,000 + $300
= $10,300
c. The computation of the cost is shown below:
Economic cost = Explicit cost + Implicit cost
= $125 + $10,300
= $10,425
Answer:
5.48% is the bank’s ratio of Tier 1 capital to risk-weighted assets
Explanation:
In this question, we are asked to calculate the bank’s ratio of Tier 1 capital to risk-weighted assets.
Firstly, we calculate the risk weighted asset for the bank
The risk weighted assets = The sum of the all the individual assets multiplied by the their percentage risk category
RWA = (100 * 0) + (200 * 0.2) + (500 * 0.5) + (750 * 1) = 0 + 40 + 250 + 750 = 1040
Now, the tier 1 capital to risk weighted ratio = 57/1040 = 0.0548 = 5.48%