Explanation:
Monotonic transformation refers to changing the quantity of both the variables in a way that their ranking or order is preserved. Monotonic transformation of a utility function does not change the marginal rate of substitution as the order of preferences remains intact with the monotonic transformation. It's just the level of utility that either increases or decreases with such a transformation. The indifference curve shape remains the same. With monotonic transformation, consumer moves from a lower to higher or higher to lower indifference curve.
Answer:
$38.14
Explanation:
The yield to maturity on the bond can be computed using the rate formula in excel as shown below:
=rate(nper,pmt,-pv,fv)
nper is the bond life measured in years which is 10
pmt is the annual coupon payment since the bond zero coupon ,pmt is $0
pv is current price of the bond which is $415.50
fv is the face value of the bond i.e $1000
=rate(10,0,-415.50,1000)=9.18%
implicit interest in dollars for first year=cash proceeds*yield to maturity
cash proceeds which is the same as price of bond is $415.50
implicit interest in dollars=$415.50*9.8%=$38.14
The <u>slope</u> of the characteristic line of a stock's returns versus those of the market measures the stock's systematic risk.
Answer:
$1,290
Explanation:
The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.
If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:
The amount of the applied overhead is $1,290.
Answer:
1. Method(s) available to the parent for internal record-keeping - (A) Initial value method
2. Easiest internal record-keeping method to apply. - (F) Initial value method, partial equity method, and equity method.
3. Income of the subsidiary is recorded by the parent when earned. - (E) Partial equity method and equity method but not initial value method.
4. Designed to create a parallel between the parent's investment accounts and changes in the underlying equity of the acquired company. - (C) Equity method.
5. For years subsequent to acquisition, requires the *C entry. - (B) Partial equity method.
6. Uses the cash basis for income recognition. - (D) Initial value method and partial equity method but not equity method
7. Investment account remains at initially recorded amount. - (C) Equity method.
8. Dividends received by the parent from the subsidiary reduce the parent's investment account. - (E) Partial equity method and equity method but not initial value method.
9. Often referred to in accounting as a single-line consolidation. - (A) Initial value method
10. Increases the investment account for subsidiary earnings, but does not decrease the subsidiary account for equity adjustments such as amortizations - (A) Initial value method
