Answer:
The athlete with equal installments got the better deal.
Explanation:
Two athletes each sign 10-year contracts for $80 million.
In one case, we’re told that the $80 million will be paid in 10 equal installments.
In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.
The one with equal installments will get $8 million every year.
But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.
Though the total value of both the annuities will remain the same.
Answer:
The answer is: remain the same
Explanation:
The marginal utility of a good or service is how much better we feel when consuming an extra unit of that good or service. For example if we are very thirsty, the marginal utility of consuming a can of Coke is very large, but once our thirst is quenched, an extra can of Coke will not provide use with that much satisfaction as before.
If the price of a substitute good increases, the marginal utility of the good whose price didn't change, will remain the same.
Let's go back to the Coke example. An extra can of Coke will give me 5 more satisfaction units (I'm assuming I can measure satisfaction) and an extra slice of pizza will give me 7 more units of satisfaction. If the price of Coke increases from 50 cents to $1, its marginal utility will decrease. I will buy more pizza because the satisfaction I get from drinking Coke is now smaller.
Answer:
15%
Explanation:
Average rate of return = average net income / amount invested
average net income = $15,570,000 / 20 = $778,500
Amount invested = $5,190,000
$778,500 $5,190,000 = 0.15 = 15%
Answer:
14.91 and 24.77%
Explanation:
The computation of the company interest coverage ratio is shown below:-
Interest coverage ratio = Earning before interest and tax ÷ Interest
= $161,000 ÷ $10,800
= 14.91
Operating profit margin = (Earning before interest and tax ÷ Revenue) × 100
= $161,000 ÷ $650,000 × 100
= 24.77%
Therefore we have applied the above formula and hence option is not available.
