Answer:
c. not affect the bond's duration.
Explanation:
The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.
On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.
Payment frequency would not change with the decrease interest rate.
The Coupon rate will also remain the same whether the interest rate increases or decreases.
The appropriate fiscal policy for when an economy goes into recession would be the expansionary fiscal policy.
Answer: A. It has a competitive advantage in the industry
Explanation:
From the question, we are informed that the average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents and that Water Inc. manufactures the same product for 0.10 cents while its average price is 0.40 cents.
The scenario shows that Water Inc has a competitive advantage in the industry. This is seen as the bottle of water is produced at a cheaper cost wen compared to its rivals.
Answer:
As follows:
Explanation:
For acquisition of Westmont Company.
Inventory dr. 600,000
Land dr. 990,000
Buildings dr. 2,000,000
Customer Relationships dr. 800,000
Goodwill dr. 690,000
Accounts Payable cr. 80,000
Common Stock cr. 40,000
Additional paid-up capital cr. 960,000
Cash cr. 4,000,000
For legal fees
Services Expense dr 42,000
Cash cr 42,000
For stock issuance
Additional Paid-In Capital dr 25,000
Cash cr 25,000
<span>Basing ourselves on probability and test measures alone, and assuming it has a normal distribution, we should expect for less than 1% of children being gifted, however we need to take into account that giftedness is subjective and cannot be objectively measured by tests alone</span>
