Answer: $35.84
Explanation:
First year
10% compounded continuously is: 10.517%
$30 X 1.10517=$33.16, then take $2 for dividend and you get ($33.16-$2) $31.16 at the end of the 1st year.
Second year
10% compounded continuously is: 10.517%
$31.16 X 1.10517-2=$32.43 at the end of 2nd year.
(-2) is the dividend for the second year to be taken out.
Third year
10% compounded continuously is: 10.517%
$32.43 X 1.10517
=$35.84
Or:
The three year forward price is gotten by deducting the PV of the returns from the current price and then grossing up to get the returns for three years at the risk-free rate.
The present value of the income is 2e-0.1×1+2e-0.1×2= $3.447.
It is (30−3.447)e0.1×3 = $35.84
Answer:
Price bundling
Explanation:
Price bundling occurs when many many gods or services are combined together into just one comprehensive package and sold at a lower price that is all-inclusive.
It enables the seller to increase profit despite the reduction in price because it enables him to promote the sale of other products or services.
Therefore, If all the services rendered to Manuel were availed individually without price bundling, it would have been more expensive.
Answer:
The correct answer is B
Explanation:
Internal operational communication is the one which occurs or happen for carrying out the operations of the firm or the company. Internal members of the company like the members of trade union, workers, the Board of directors and managers.
This form of the communication in the company, is written and the oral form.
Therefore, it is defined as the communication which helps in sustaining or making the relationship upon which the business or the company grounded and it is more vital than ever.
Answer:
a. The money multiplier is 5.
b. The Total money supply will increase by $250 million.
Explanation:
According to the given data we have the following:
Increase in amount of reserves by Fed = $100 million
Increase in money supply = $500 million
Therefore to Calculate the Money multiplier we have to use the following equation:
Increase in money supply = Increase in reserves×Money multiplier
So, Money multiplier = Increase in money supply/Increase in reserves
= $500 million/$100 million
= 5
a. The money multiplier is 5.
If there is anIncrease in amount of reserves by Fed = $50 million and the Money multiplier = 5
, therefore to Calculate increase in money supply we calculate the following:
Increase in money supply = Increase in amount of reserves by Fed * Money multiplier
= $50 million
= $250 million
b. The Total money supply will increase by $250 million.
Answer:
$3,000,000
Explanation:
Short term debt: The short term debt is those debts that are due for a less period i.e less than 12 months or one year. It is shown under the current liabilities on the balance sheet side.
In the question, it is given that the $3,000,000 note payable is mature on March 15, 2018, and we record the same on December 31, 2017 balance sheet. If we see the time period between these two dates so it will be less than 12 months. That's why we consider as a total short term debt