Answer:
They can operate a business however they choose, but it must be fair and right to society.
Explanation:They must keep their hours everyday, fair prices, etc
<span>May combine elements of closed and open-end credit, usually has higher interest rates, usually has higher fees
hope this helps
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Answer:
Each company drills two wells and experiences a profit of $22 million.
Explanation:
If each company acts independently and drills two oil wells each they will have a total of 4 wells each worth (60 million ÷ 4= $15 million.
Each company will have two oil wells which equals (2* 15 million = $30 million)
But each company incurs cost of $4 million per well. That is total cost of $8 million.
Therefore the profit for each company will be $30 million - $8 million= $22 million
Answer:
The Stated Yield to Maturity is 13.91%
The Expected Yield to Maturity is 7.45%
Explanation:
We can calculate using a financial calculator or rate function in Microsoft Excel.
We are given
-Number of periods=10
-Present Value (PV)=900
-Coupon amount (PMT)= 120 (1000*12%)
-Future Value (FV)= 1000
we get 13.91% as Stated yield to maturity
For Expected Yield to maturity
We are given
-Number of periods=10
-Present Value (PV)=900
-Coupon amount (PMT)= 60 (120*50%)
-Future Value (FV)= 1000
we get 7.45% as expected Yield to Maturity
Answer:
a. $23
b. $184,000
c. $506,000
Explanation:
a. The computation of Per unit mineral cost is shown below:-
Cost of land $1,190,000
Add: Restoration obligation $90,000
Add: Development cost $200,000
Less: Resale value of property $100,000
Total cost of land $1,380,000
Total estimated tons of minerals 60,000
Per ton mineral cost $23
b. The computation of Total material cost is shown below:-
Ending inventory = Total mined tons - Sold tons
= 30,000 - 22,000
= 8,000
Cost of ending inventory = Ending inventory × Cost per ton
= 8,000 × $23
= $184,000
c. The computation of Total materials cost in cost of goods sold is shown below:-
Cost of goods sold = Total units Sold × Cost per ton
= 22,000 × $23
= $506,000
