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3 years ago

Explain 3 factors that change supply elasticity.

Business

1 answer:

vazorg [7]3 years ago

6 0

Answer:

There are numerous factors that impact the price elasticity of supply including the number of producers, spare capacity, ease of switching, ease of storage, length of production period, time period of training, factor mobility, and how costs react.

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Too Young, Inc., has a bond outstanding with a coupon rate of 7.1 percent and semiannual payments. The bond currently sells for

likoan [24]

Answer:

7.68%

Explanation:

Data provided in the question

Present value = $1,891

Future value or Face value = $2,000

PMT = 2,000 × 7.1% ÷ 2 = $71

NPER = 17 years × 2 = 34 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, The pretax cost of debt is 7.68% (3.84% × 2)

7 0

3 years ago

A toy manufacturer conducted a survey to estimate the market demand for its specialized wood-based toys in a foreign country. Fo

Troyanec [42]

Answer:

Explanation:

7 0

4 years ago

Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances mi

coldgirl [10]

Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders significant rights as a shareholder;

+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.

+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.

Explanation:

8 0

3 years ago

An important application of interest involves amortized loans. Some common types of amortized loans are automobile loans, home m

Luda [366]

Answer:

a)Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

Explanation:

The annual payment which will be used to offset the loan is computed as

follows:

Annual Installment = Loan amount/annuity factor

Annuity factor = (1 - (1+r)^(-n)/r )

= 1- (1+0.08)^(-6)/0.08)

= 4.6228

Annual Repayment Installment

= 13,000/4.6228

= $2,812.1

b) Amount of first payment to be applied to Interest and principal :

Amount to be applied to interest:

Interest due in year 1 = 8% × $13,000

= $1040

Amount to be applied to principal:

= $2,812.1-1040

= $1772.10

Annual Repayment Installment:$2,812.1

Amount to be applied to interest:$1040

Amount to be applied to principal: $1772.10

7 0

3 years ago

The market price of a bond issued at a premium is the present value of its principal amount at the market rate of interest:

Goryan [66]

Answer:

D. In addition to the present value of all future interest payments at the market (effective) interest rate

Explanation:

Hope this helps you :)

5 0

3 years ago