Answer:
The bank
Explanation:
The bank benefits because when setting up the loan, the determined rate accounted for a 4% reduction in purchasing power, while the actual reduction in purchasing power was 2%. Therefore, Zac will be paying back "money that is worth more" and the bank benefits.
Answer:
The expected return on this stock is 11.38%.
Explanation:
We apply the Capital Asset Pricing Model (CAPM) to solve the problem.
Under the CAPM, we have:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate).
in which:
Risk-free rate is given at 3.1%;
Beta is given at 1.15;
Return on Market is given at 10.3%;
So:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate) = 3.1% + 1.15 * ( 10.3% - 3.1%) = 11.38%.
Thus, the answer is 11.38%.
The five foundations of trade are:
- incentives
- tradeoffs
- opportunity cost
- marginal thinking,
- principle that trade creates value.
<h3>Why do we engage in trade?</h3>
There are five main foundations of trade that are the reason why people engage in trade. One of them is the profit incentive to make money from trade. Another is the tradeoffs that people are forced to make to survive.
Opportunity cost also leads to trade because people give up one thing for another and so may have to sell the thing they gave up to receive the thing they want. There is also the principle which posits that when we trade, value is created. Finally, there is marginal thinking which is thinking along the lines of the benefit of one additional unit.
Find out more on the foundations of trade at brainly.com/question/2710473
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Answer:
Option "C" is the correct answer to the following statement.
Joker, Klue, and Lion Corporations
Explanation:
A group of controlled business is described as a community of two or more companies, businesses or firms.
Joker Corporation purchases 80%, 45% and 45% of Klue, Lion and Mark Corporation respectively.
Klue Corporation purchases 40% and 10% of Lion and Mark Corporation.
In this situation, Joker corporation is created a Parent-subsidiary relationship with other firms. where Klue corporation creates brother-subsidiary relation with Lion and Mark corporation.
Answer and Explanation:
The computation is shown below:
a. The contribution margin ratio is
= (Selling price - variable cost) ÷ (Selling price)
= ($20 - $14.20) ÷ $20)
= 29%
b. The contribution margin per unit is
= (Selling price - variable cost)
= ($20 - $14.20)
= $5.80
c. The income from operations is
= $5.80 × 38,000 units - $108,000
= $112,400
