Answer:
$2.45
Explanation:
The formula to compute the marginal revenue is shown below:
Marginal revenue = Change in total revenue ÷ Change in number of quantity sold
where,
Change in total revenue would be
50 burgers × $5 = $250
51 burgers × $4.95 = $252.45
So, the change in total revenue is
= $252.45 - $250
= $2.45
And, the change in number of quantity sold is
= 51 burgers - 50 burgers
= 1
So, the marginal revenue is
= $2.45 ÷ 1
= $2.45
Answer:
Bond Price = $616.6938765 rounded off to $616.69
Explanation:
To calculate the quote/price of the bond today, we will use the formula for the price of the bond. Assuming the bond is a semi annual bond, the semi coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.032 * 6/12 = $16
Total periods (n) = 16 * 2 = 32
r or YTM = 0.073 * 6/12 = 0.0365 or 3.65%
The formula to calculate the price of the bonds today is attached.
Bond Price = 16 * [( 1 - (1+0.0365)^-32) / 0.0365] + 1000 / (1+0.0365)^32
Bond Price = $616.6938765 rounded off to $616.69
Answer:
Yes, earning sensitivity will change in the long run
Explanation:
Earnings Sensitivity Analysis helps in determining the impact of an independent variable over a particular dependent variable based on various assumptions. This comparison on its own, measures changes in the long run.
This technique helps managers in determining the change in net interest income in correspondence to wide range of interest rates.
The repricing gap in the long term window will measure of the difference between the dollar value of assets that will reprice and the dollar value of liabilities that will reprice within a specific time period.
A possible implication is potential to receive a new interest rate.
The assets that could explain the positive reprising gap is Accounts payable and investments.
Two examples of Liabilities are: Short term loans and accounts payable.
Answer:
<u><em>Social Audit</em></u>
Explanation:
The Pak-It-Way Company makes custom packaging of all kinds . The firm has evolved into a big business due to quality and innovative work . Recently , top management asked company departments to list and evaluate the kinds of socially responsible efforts conducted internally and externally in the business and also to list negative occurrences that supervisors observed . Top management is essentially conducting a <u>social</u> <u>audit.</u>
<em>Social audit is an audit to examine how an organisation is behaving or working for its employees , society and environment.</em>
Social audit helps in encouraging the participation of the community , it also helps in encouraging the local democracy, it promotes the decision making and helps in developing the human resources.
Social audit has wide coverage , it is evaluated very systematically , it is always conducted in a regular period of time , it measures the social performance of the organisation towards its employees society and the environment. But social audit is difficult to conduct.
