Answer:
Par value, interest rate is equal to coupon rate
Explanation:
Par value, face value or nominal value is the amount of money bond issuers oblige to pay to bond holders at its maturity. When the bond is issued at this value, it is issued without premium or discount or at equal interest and coupon rates. Interest rates are usually set by the market. Bondholder has rights to periodic coupon payments and nominal payment at bond's maturity.
Answer:
d. Reduce average Inventory
Explanation:
Inventory turnover ratio represents how quickly an entity's inventory is converted into sales and cash is generated.
Inventory turnover in days is computed as;
= 
Inventory turnover ratio can be computed as:
= 
Average stock = 
wherein, Op stock = Opening stock
Cost of Goods Sold = Sales - Gross Profit
A reduction in the average inventory level would increase the inventory turnover ratio, and thus reduce the inventory conversion period from 80 days to a lower level.
Answer:
Option (d) is correct.
Explanation:
If there is an increase in the income taxes then as a result there is a leftward shift in the labor supply curve and we know that labor supply curve indicates the the amount of labor hours workers devoted towards the production of the goods. Hence, this will lead to a reduction in the real GDP as there will be less working hours devoted by the workers because of the higher income taxes.
Answer:
Income will be higher by $16 per unit
Explanation:
As per the data given in the question,
Direct material = $38
Direct labor = $50
Overhead = $21
Total variable cost = $38 + $50 + $21
= $109
Cost of supply = $125
Income increased per unit = cost of supply - total variable cost
=$125 - $109
= $16
Because the cost of inhouse is lower therefore net income will be more by $16 per unit
