Answer:
To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.
Explanation:
Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments, they are used to calculate the risk free rate.
When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.
Answer:
43150 units
Explanation:
For computing the equivalent units of production for conversion costs, first, we have to find the sale units which is shown below:
= Production units for material - ending work in progress units
= 44,500 units - 4,500 units
= 40,000 units
Now the ending work in progress units for conversion would be
= Ending work in progress units × percentage of completion
= 4,500 units × 70%
= 3,150 units
So, the equivalent units of production for conversion costs would be
= Sale units + ending work in progress units for conversion
= 40,000 units + 3,150 units
= 43,150 units
Answer:
Option (B) is correct.
Explanation:
Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.
Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.
Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.
Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.
Answer:
Part of the labor force and employed
Explanation:
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered part of the labor force and employed. Although Yunis is not getting anything in return and he is working 25 hours a week but he still will be considered as the part of the labor force and employed because he is working in his own business and the money generated with his services will be coming to his own family, therefore, he will be considered as an employed man.
Answer:
Option D is the correct option. Please choose option D that is $150,000.
Explanation:
Amount of paid-in capital from treasury stock transactions = Shares exchanged * (Market Price - Share purchase Cost)
Where Shares exchanged = 25000
Market price = $45
Cost of share = $39
Therefore, the amount of paid-in capital from treasury stock transactions = 25000 shares * (45 - 39) = $150,000
Option D $150,000 is correct
