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soldier1979 [14.2K]
3 years ago
8

The general price level is 150.00 and people expect it to increase to 156.00 next year. Therefore, the expected rate of inflatio

n equals percent. Moreover, there is a one-year bond that promises to pay $107,000.00 next year and is selling for $100,000.00 in the bond market today. So, the nominal interest rate equals percent, and the ex-ante real interest rate on this bond equals percent. Because of some news about the state of the economy, people revise their expectations of the future price level to 159.00. According to the Fisher Effect, the price of the bond today will change to_______ dollars.
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

$98,165.14

Explanation:

Note: There are missing word but the full question is attached as picture below

Here, Initial Nominal Interest rate = 7%

Inflation expectation= 4%

So, real return = 3%

Now, investors would want same real return

New inflation = (159 - 150)/150 *100 = 6%

Nominal interest rate = 6 %+ 3% = 9%

Price after 1 year = $107,000

So, current price changes to = $107,000/(1+0.09) = $107,000/1.09 = $98,165.14

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Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity.
KiRa [710]

Answer:

1. Contribution Margin per production hour

Product X = $12, Product Y = $15

2. Allocate all production capacity to product Y to generate $60,000 contribution

Explanation:

Step 1: Calculate The Contribution margin Per Production Hour

Product X,

= Contribution Margin per unit = $6

Number of Unit Produced in 1 hour= 2

Contrbution Per 1 Hour = $6 x 2 = $12

Product Y,

= Contribution Margin per unit = $5

Number of Unit Produced per  hour= 3 units

Contrbution Per  Hour = $5 x 3 = $15

Step 2: Calculate the Most Profitable Sales Mix

Option 1: Allocate all production capacity to product x

Number of Hours available = 4000 hours

Total Contribution = Contribution on hourly basis x total number of hours

Total Contribution = 12 x 4000= $48,000

Option 2: Allocate all production capacity to product Y

Number of Hours available = 4000 hours

Total Contribution = Contribution on hourly basis x total number of hours

Total Contribution = 15 x 4000= $60,000

Option 3: Allocate 40% of Capacity to Product X

Hours of total hours for product X = 40% x 4000 = 1600

Hours of toal hours for Product Y = 60% x 4000= 2400

Contribution therefore:

X= 12 x 1600= $19,200

Y= 15 x 2400= $36,000

Total Mix= $55,200

Option 4: Allocate 24% of Capacity to Product Y

Hours of total hours for product X = 76% x 4000 = 3040

Hours of toal hours for Product Y = 24% x 4000= 960

Contribution therefore:

X= 12 x 3040= $36,480

Y= 15 x 960= $14,400

Total Mix= $50,880

The Most Profitable Sales Mix is to allocate all Capacity to Product Y to generate $60,000

5 0
3 years ago
Equipment with a book value of $65,300 and an original cost of $133,000 was sold at a loss of $14,000. Paid $89,000 cash for a n
yulyashka [42]

Answer:

The company’s cash flows from investing activities is $221,100

Explanation:

Cash flow from investing activities:

It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.

The cash flow from investing activities is shown below:

Add : Sale of equipment (Book value - loss) = ($65,300 - $14,000) = $51,300

Less : Purchase of new truck = - $89,000

Add: Sale of land = $198,000

Add: Sale of long term investment = $60,800

So, the cash flow from operating activities :

= $51,300 - $89,000 + $198,000 + $60,800

= $221,100

The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.

Hence, the company’s cash flows from investing activities is $221,100

7 0
3 years ago
TJ electronically transferred $125.41 from his checking account to Rachel's checking account. In what column of the check regist
SSSSS [86.1K]
Payment/Debit...................................................................................................................
                                                                                                                                                                     
4 0
3 years ago
Read 2 more answers
A company has the following selected account balances: Sales $ 250,000 Sales Discounts 1,500 Sales Returns and Allowances 2,300
Ulleksa [173]

Answer:

$121,200

Explanation:

Calculation to determine the gross profit that would appear on a multiple-step income statement

First step is to determine the Net sales

Sales $ 250,000

Less Sales Discounts ($1,500)

Less Sales Returns and Allowances ($2,300 )

Net sales $246,200

Now let determine the Gross profit using this formula

Gross profit=Net sales-Cost of Goods Sold

Let plug in the formula

Gross profit=$246,200-$125,000

Gross profit=$121,200

Therefore the gross profit that would appear on a multiple-step income statement is $121,200

8 0
3 years ago
Explain the imortance of feedback in the communication process.(3marks)
liraira [26]
Feedback gives somebody another point of view other than there own allowing them to improve themselves
7 0
3 years ago
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