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3 years ago

How do corporate bonds affect the economy

Business

1 answer:

zheka24 [161]3 years ago

7 0

Answer:

Bonds affect the U.S. economy by determining interest rates, which affect the amount of liquidity and determines how easy or difficult it is to buy things on credit or take out loans for cars, houses, or education

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Russell Preston delivers parts for several local auto parts stores. He charges clients $1.30 per mile driven. Russell has determ

Lapatulllka [165]

Answer:

A. Determine how many miles Russell needs to drive to break even?

break even formula = total fixed costs / contribution margin

total fixed costs = $1,220
contribution margin = $1.30 - $0.29 = $1.01

break even formula = $1,220 / $1.01 = 1,207.9 ≈ 1,208 miles

B. Assume Russell drove 2,500 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

if he drove 2,500 he made a profit because it is more than the break even point.

C. Determine how many miles Russell must drive to earn $2,135.00 in profit.

($1,220 + $2,135) / $1.01 = 3,321.7 ≈ 3,322 miles

D. Prepare a contribution margin income statement assuming Russell drove 2,500 miles last month.

total revenue $3,250

<u>- variable costs ($725)</u>

contribution margin $2,525

<u>- fixed costs ($1,220)</u>

net income $1,305

E. Use the above information to calculate Russell’s degree of operating leverage.

Degree of operating leverage = contribution margin / operating income = $2,525 / $3,250 = 0.7769 or 77.69%

8 0

3 years ago

A portfolio is invested 22 percent in Stock G, 50 percent in Stock J, and 28 percent in Stock K. The expected returns on these s

Fittoniya [83]

Answer:

The expected return of the portfolio is 12.8%

Explanation:

A portfolio is invested 22% on stock G, 50% on stock J and 28% on stock K.

The expected return on stock G is 7%, on stock J is 13% and on stock K is 17%.

Weighted return on stock G

= 0.22*7%

=1.54%

Weighted return on stock J

=0.50*13%

=6.5%

Weighted return on stock K

=0.28*17%

=4.76%

The expected return on the portfolio

=Weighted return on stock G+Weighted return on stock J+Weighted return on stock K

=(1.54+6.5+4.76)%

=12.8%

8 0

3 years ago

g If the beginning work in process includes 200 units that are 20% complete with respect to conversion and 30% complete with res

Temka [501]

Answer:

1,140 units

Explanation:

Note : The question requires us to use the weighted-average method. This method focuses on equivalent units of completed units and units still in process only.

Step 1 : Determine units completed and transferred

Units Completed = Beginning units + Units Started - Ending units

= 200 + 1,000 - 100

= 1,100 units

Step 2 : Calculate equivalent units of production with respect to conversion costs

Completed and transferred (1,100 x 100%) 1,100

Ending units (100 x 40%) 40

Total equivalent units of conversion costs 1,140

thus,

the equivalent units of productions for the period (using the weighted-average method) for conversion is 1,140 units.

7 0

2 years ago

2.1: A debit is A : a decrease to an account. B : an entry on the left side of an account. C : an entry on the right side of an

Luba_88 [7]

Answer:

B : an entry on the left side of an account.

Explanation:

There are two terms i.e debit and credit.

The accounts that reported as an expense, losses, assets are recorded in the left-hand side of an account as it contains the debit balance.

While the account reported as a revenue, gains, liabilities & stockholder equity are recorded in the right-hand side of an account as it contains the credit balance.

7 0

3 years ago

When Alex's income increased from $2,000 to $4,000, he increased his consumption of bagels from 6 to 10 a month and decrease

Oliga [24]

Answer:

For Bagels = 1.33

For Donuts = -1.33

Explanation:

Using the midpoint method, Alex's percentage change in income is given by the difference in income divided by the average income:

$\%I =\frac{\$4,000-\$2,000}{\frac{\$4,000+\$2,000}{2}}\\\%I=66.67\%$

Alex's percentage change in demand for both bagels and donuts is given by the difference in the quantity consumed divided by the average consumption:

$\%B =\frac{10-6}{\frac{10+6}{2}}\\\%B=50.00\%\\\%D =\frac{9-15}{\frac{15+9}{2}}\\\%D=-50.00\%$

Alex's income elasticity of demand for bagels and donuts, respectively, is:

$E_B=\frac{\%I}{\%B}=\frac{66.67\%}{50\%} \\E_B=1.33\\\\E_D=\frac{\%I}{\%D}=\frac{66.67\%}{-50\%} \\E_D=-1.33$

His income elasticity of demand for bagels is 1.33, while for Donuts it is -1.33.

6 0

3 years ago