<span>This means that there were customers that were wanting the Disney channel, but did not get it because it was too expensive. Once the price went down these customers bought the service. The cable company test showed that they should keep their prices for the Disney channel low to generate more revenue. Even if they only had one customer to begin with they would only be making $10.75, and when they lowed their prices they would be making at least $15.90.</span>
Answer:
6%
Explanation:
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.
Solution
interest rate on 3-year bond
Interest rate = [{(1 + 3%) × (1 + 5%) × (1 + 8%)} ^ (1 / 3) - 1] + 0.75%
Interest rate = [(1.16802 ^ 0.33) - 1] + 0.75%
Interest rate = (1.0525- 1) + 0.75%
Interest rate = 0.0525 + 0.0075%
Interest rate = 0.06 OR 6%
Answer:
-$11
Explanation:
Covered Call involves Buy stocks and Sell call options
Earning $2.89 by selling call. So, at stock price of $27, the payoff from options is $2.89 per option
Options Profits = $2.89 * 100
Options Profits = $289
Profit of stock = ($27 - $30) * 100
Profit of stock = -$300
Investor Net Profit = Profit of stock + Options Profits
Investor Net Profit = -$300 + $289
Investor Net Profit = -$11
Answer:
For every $1.00 spent in manufacturing, another $2.79 is added to the economy
Explanation:
hope this helps
Bills accounting profit is
equals to revenue ($250,000) minus explicit (monetary) cost (50,000 and
30,000), while his economic profit is equals to accounting profit minus
implicit (opportunity) cost (3,000 and 100,000). Accounting profit is $170,000
and Economic profit is $67,000.
<span>Economic profit is always lower
than accounting profit because explicit costs and implicit costs are both
deducted to revenue. Implicit costs are cost that he should have earned if he
gives up his present resources. These costs are projected cost and are not yet
incurred.</span>
