Answer:
$23,088.62
Explanation:
We must determine the present value of Liam's investment discounted by his opportunity cost rate. The present value formula is:
PV = FV / (1 + r)ⁿ
PV = $52,000 / (1 + 7%)¹² = $52,000 / 2.2522
PV = $23,088.62
A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority.
<h3>What is a CMO tranche?</h3>
A pooled debt instrument known as a sequential pay collateralized mortgage obligation (CMO) amortizes its tranches in accordance with their seniority. In a sequential pay CMO, interest is paid on each tranche as long as the original balance is not entirely repaid.
Tranches are segments of a CMO or other debt or instrument that are organized to split risk or classify assets according to attributes. Securities are personalized and marketable to specific investor segments because to this division and portioning.
The specification of the term structure of interest rates and a model for valuing the call risk borne by the various tranches are the two essential components of CMO valuation.
Therefore, the correct answer is option d companion.
To learn more about the CMO tranche refer to:
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Answer:
Donuts= 28,571
Explanation:
<u>First, we need to determine the sale proportion of each product:</u>
Other items= 2/5= 0.4
Coffe= 2/5= 0.4
Donut= 1/5= 0.2
<u>Now, we can calculate the break-even point in units for the company as a whole:</u>
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Break-even point (units)= 100,000 / (0.5*0.2 + 0.5*0.4 + 1*0.4)
Break-even point (units)= 100,000 / 0.7
Break-even point (units)= 142,857 units
<u>Now, the number of donuts:</u>
<u />
Donuts= 0.2*142,857
Donuts= 28,571
Answer: Labor cost is a representative of greater percentage of total cost for many firms. From the data of Bureau of Labor statistics, the U.S labour cost up to 2% in 2015 in comparison to 2014.
Explanation:
A. As labor increases, average total cost and marginal cost increases as well due to the fact that labor is part of total cost of production. If labor cost represents only variable cost when firms shut down, labor cost will be save but if it represents but variable and fixed cost, labor cost can't be avoided.
B. A positive productivity growth lead to a total product curve and marginal labor curve shift upward because total output and marginal product of labor curve increases.
C. A positive productivity curve will result in an downward shift of marginal cost curve and average total cost curve because average total cost and marginal cost decreases per output.
D. If labor cost are rising overtime on average. equipments, technologies and methods that increases labor productivity will be adopted in order for total output and marginal product of labour to increase.
Answer:
The percentage of Indiana residents with a college degree rises from 25% to 30%.
Explanation:
Human capital is one of the most important (according to some economists the most important) aspect for economic growth. If college graduates in Indiana go from 25% to 30%, it means that Indiana's human capital has improved.
With improved Human Capital, now Indiana can produce better steel and corn, or even produce other things, because its college graduates have acquire the necessary knowledge to do so. This will in turn lead to economic growth and a higher standard of living.
