Answer:
The answer is "The wage rate will fall and employment will be increased until the new wage rate is equal to MRP.
Explanation:
Firms always try to maximize their profit. Therefore when they hire labor, the increase in labor costs must be lower than the labor's increase to the firm's total revenue. And this forms the "Marginal Revenue Productivity" which is simply the theory that suggests "Wages are paid at a level that is equal to the value of the marginal product of labor". Supply of labor is a function that is inversely proportional with wage rate. So if the supply of labor increases, the correct answer is that "The wage rate will fall and firms will increase employment until MRP equals the new wage rate." Hope this was helpful.
Answer:
Michone's creditors (listed in order of priority):
- bank = $500,000 mortgage (secured loan)
- child support = $5,000 (priority class of unsecured creditors)
- legal fees = $4,000 (second class of unsecured creditors)
- State government* = property taxes for $8,000 (eighth class of unsecured creditors, but property taxes are always collected after a property is sold either by foreclosure or by court order). Even if the new buyer didn't know anything about the delinquent property taxes, he/she is responsible for paying them after the sale is made and it cannot be avoided.
- car accident victim = $40,000 (tenth class of unsecured creditor)
*Generally taxes owed are a lower class of priority unsecured creditors, but taxes never disappear. In this case, the property taxes are going to be paid by whoever bought the house or the bank in case the house was foreclosed. Michone will not pay them, but someone else will.
Assuming that Michone only had $10,000 left after selling the house (both property taxes and mortgage are paid for), she will need to pay child support first. Child support and alimony payments always have the top priority.
Then with the remaining $5,000 administrative and legal fees will be paid, meaning that the attorney fees will be paid first. The car accident victim will receive only $1,000.
Answer:
a. $2125
b. $2025
c. there is an arbitrage opportunity.
Explanation:
a. St = So x (1+ rm)-D
So = current index price = 2000
rm = return on market = 8%
D = dividends = $35
inserting into the formula:
2000x(1+0.08)-35
= $2125
b.
So x (1+rf)-D
rf = 3%
2000 x (1+0.03)-35
= $2025
c. yes there is an arbitrage opportunity. the investor should go into contract with an exercise price of 2125dollars then short sell asset in future and after this, buy back after at future market price. since actual future price is 2012 and price expected is 2125.
While you buy a bond, you're loaning cash to both a government and a corporation. whilst these entities first difficulty the bonds, they're bought at "par", which means you lend, say, $a hundred, and at the adulthood of the bond, you'll acquire $100 lower back. at the time of the difficulty, the coupon charge is also set, primarily based on modern-day interest quotes and the entity's credit score. This determines the yearly or semiannual quantity you will acquire when buying the bond.
A bond can be bought on the secondary market before adulthood. however, the price of this bond will promote greater than par (i.e. a premium) if present-day interest quotes decrease than what they had been while the bond was issued and less than par if interest fees have gone up (i.e. a reduction).
An example, a bond is issued these days, maturing in 10 years with an annual coupon of five%. In 5 years, hobby fees have risen to 7%, so someone shopping for the bond with a five% coupon would demand a discount at the face price (in any other case, they could just buy the 7% bond at par).
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Answer:
D. Reimbursement
Explanation:
A principal may be defined as a company's agent dealing with a contractor. The principal has the duty to reimburse an agent for the amount of money used up while carrying out his/her duty. Reimbursement may be from expenses like cost of travelling, cost of meals, cost of lodging and so on. In other words, if an agent makes authorized spending while doing a job for the principal, the principal has the duty to reimburse the agent for the money spent.
