Answer:
$192,000 million
Explanation:
Calculation for how much revenue should Parmac recognize in the current year
First step is to find the percentage of completion using this formula
Percentage of completion=Cost incurred/Total expected cost
Let plug in the formula
Percentage of completion=$144 million/$360 million
Percentage of completion=0.4*100
Percentage of completion=40%
Last step is to find the revenue recognized using this formula
Revenue recognized=Total contract *Percentage of completion
Let plug in the formula
Revenue recognized=$480 million*40%
Revenue recognized=$192,000 million
Therefore the amount of revenue that Parmac should recognize in the current year will be $192,000 million
Answer: a. increase the reserve requirement
Explanation:
With such an inflation rate, the economy is probably producing at a point higher than its potential GDP which means that it is overheated. It therefore needs to be controlled and brought back down to its potential level.
Restrictive monetary policy - reducing money supply - would be a way to do this. The Fed can do this via a variety of ways but one way is by raising the reserve requirement. This would require banks to leave more deposits with the Fed. As these cannot then be lent to the public, money supply will decrease.
Communicating honestly and openly about the problem
Answer:
1) cash at issuance 2,955,000
2) cash for maturity 3,000,000 plus 210,000 interest = 3,210,000 total cash outlay at maturity
3) cash interest 210,000
Explanation:
1) It will receive 98.5/100 of the face value
3,000,000 x .985 = $2,955,000
2) at maturity it will still have to pay the face value regardless of the amount received for the bonds aty issuance thus; $3,000,000 We will also have to add up the interest for the last period.
3) the cash interest will be considered using the face value and the coupon rate of 7% regardless of current market rate and market price of the bond.
3,000,000 x 7% = 210,000
Answer:
A. efficient market
Explanation:
An efficient market is a market where all information related to the price available to everyone and price changes quickly according to the available information. for example the Stock exchange market, where everyone knows about the share price of listed companies and because of this same available information to everyone there is more fluctuations in price and quantity of products and leads to limited profit opportunities.
