Answer:
b 5:3
Explanation:
Jungle gym sales unit : tree sales unit
10,000 : 6,000
10,000 / 6000
= 5/3
=5:3
Answer:
increasing returns to scale
Explanation:
The biggest barrier for other firms are increasing returns to scale. This is because Eric and Chris have their company already established and also have their clientele all hooked up and using their service. This allows them to produce a much higher electrical output for their clients with a certain Income. Newer companies will need a much higher income just to be able to produce a similar electrical output in order to try and compete with Eric and Chris.
Answer:
Rate of interest = 6/60% = 10%
Explanation:
Net rate of bonds after tax will be = Rate of interest X (1 - Tax)
Heflin bond = 6% X (1 - 40%) = 3.6%
Surething Bond = 9% X (1 - 40%) = 5.4%
Since both bonds provide interest and Surething provides more than Heflin
then in order to make both incomparable Surething can decrease the rate of interest to that of Heflin so that Hugh remains indifferent will be 6%
In case there is no tax on Heflin Bond, as Hugh is in 40% marginal tax bracket, then net interest = 6 %
But for Surething Hugh will have to pay tax then after tax value of interest shall be 6% i.e. 6% = 1 - 40%
Rate of interest = 6/60% = 10%
Surething needs to pay Interest @10% on bonds. to make Hugh indifferent of both the bonds.
Answer:
whats the previous message
Answer:
Explanation:
Perpetuity is a time value of money concept where cashflows occur indefinitely; the recurring payments go on forever.
The formula for finding the present value of these perpetually recurring cashflows is as follows;
PV = CF/ r
whereby,
CF = Cashflow = £3.3
r = rate = 3.3% or 0.033 as a decimal
so PV = 3.3 / 0.033
PV = £100.00
If the rate is 1.80% or 0.018 and recurring CF is £1.80, then PV would be;
PV = 1.80 / 0.018
PV = £100.00
