Vicky Torres and Juanita Alva were the first in line at Best Buy during a Black Friday sale so that they could secure a large-screen TV, which was normally $499 and was advertised on sale at $199. Because they arrived three weeks early, they ended up waiting in line for a total of 500 hours! The authors of your textbook found their choice puzzling because of the high opportunity cost in this scenario. The authors say: "Saving $300 by spending 500 hours makes Vicky and Juanita's time worth 60 cents an hour. They could have spent 30 hours working an extra job at $10 an hour and each earned enough money to purchase the TV at full price-and still had 470 hours to do other things. In short, they don't seem to have been aware of the opportunity cost of waiting in line." But this is not the only conclusion one can draw from Vicky and Juanita's behavior. Choose the conclusion below that would be consistent with the idea that Vicky and Juanita were aware of the opportunity costs yet still found the three-week-wait to be worthwhile.
a. "However, they might have enjoyed the experience of camping out in line, meeting other customers, and gaining a degree of fame for their commitment to getting a good deal."
b. "Vicky and Juanita really enjoy their high paying jobs and don't like camping at all."
c. "If they are able to camp out for three weeks, they probably do not have full-time jobs, so earning 60 cents an hour is a good decision for the shoppers."

Answers

Answer 1

Answer:

a. "However, they might have enjoyed the experience of camping out in line, meeting other customers, and gaining a degree of fame for their commitment to getting a good deal."

Explanation:

Opportunity costs refer to the extra costs or benefits lost associated with choosing one activity or investment over another alternative. In other words, every  activity that you carry out includes the opportunity cost of not doing something else. Vicky and Juanita obtained more than just the $300 discount, they also met new people and a little bit of fame.


Related Questions

Self-Study Problem 10-1 Master Budget
Hansell Company’s management wants to prepare budgets for one of its products, Duraflex, for July 2019. The firm sells the product for $91 per unit and has the following expected sales (in units) for these months in 2019:
April May June July August September
3,900 6,500 6,600 8,200 9,200 5,800
The production process requires 4 pounds of Dura-1000 and 2 pounds of Flexplas. The firm’s policy is to maintain an ending inventory each month equal to 10% of the following month’s budgeted sales, but in no case less than 500 units. All materials inventories are to be maintained at 5% of the production needs for the next month, but not to exceed 1,000 pounds. The firm expects all inventories at the end of June to be within the guidelines. The purchases department expects the materials to cost $1.25 per pound and $5.00 per pound for Dura-1000 and Flexplas, respectively.
The production process requires direct labor at two skill levels. The rate for labor at the K102 level is $50 per hour and $20 per hour for the K175 level. The K102 level can process one batch of duraflex per hour; each batch consists of 100 units. The manufacturing of Duraflex also requires one-tenth of an hour of K175 workers’ time for each unit manufactured.
Required:
On the basis of the preceding data and projections, prepare the following budgets:
a. Sales budget for July (in dollars).
b. Production budget for July (in units).
c. Production budget for August (in units).
d. Direct materials purchases budget for July (in pounds).
e. Direct materials purchases budget for July (in dollars).
f. Direct manufacturing labor budget for July (in dollars).

Answers

Answer:

a.-Sales Budget (in dollars).      

     

Budgeted sales in units     6,000

Budgeted selling price per unit            $40  

Budgeted sales              $240,000  

     

     

b.  Production Budget (in units)  

 

     

Desired ending inventory (July 31)      

(The higher of 100 and 7,000 x 0,1)     700

Budgeted sales for July 2002    + 6,000

Total units needed for July 2002     6700

Beginning inventory (July 1)    -  

(The higher of 100 and 6,000 x 0,1)     600

Units to manufacture in July     6100

C.-Production Budget (in units)  

for August 2002  

Desired ending inventory (8,000 x 0,1)     800

Budgeted sales    + 7,000

Total units needed     7800

Beginning inventory    - 700

Units to manufacture in August     7100

d.-Direct Materials Purchases Budget (in pounds)      

For July 2002      

      Direct Materials  

     Dura-tOOO  Flexplas

     (4Ib. each)  (2Ib. each)

       

d Materials required for budgeted        

production (6,100 units of duraflex)     24,400    12,200  

Add: Target inventories (lower of 1,000 or 5 percent of        

August production needs)   1,420   710   1000   710  

Total materials requirements      25,400    12,910  

Less: Expected beginning inventories (lower of 1,000 orr 5 percent)                                                                                     .                                                      1,220   610   1000   610  

Direct materials to be purchased    24,400    12,300  

e.Direct Materials Purchases Budget (in dollars)        For July 2002        

     Budgeted  Expected  

     Purchases  Purchase  

     (Pounds)  Price per Unit  Total

Dura-lOOO      24,400    $1.25    $30,500  

Flexplas       12,300    $5.00    $61,500  

Budgeted purchases         $92,000  

Explanation:

The firm's policy is to maintain a minimum of 100 units of duraflex on hand at alltimes with no fewer than 10 percent of units on hand at the end of a period to meet              

the expected sales for the following month. 100     10%  

             

All materials inventories are to be maintained at 5 ercent of the production needs for the next month, 5%  but not to exceed 1000 pounds 1000                      

The firm expects all inventories at the end of June to be within the Guidelines.

The purchase department expects the materials to cost $1.25 per pound          $1.25 and $5.00 per pound of dura-lOOO and flexplas, respectively.          $5.00      

             

The production process requires direct labor at two skill levels.          rate per unit  The rate for labor at the K102 level is $50 per hour and           $50.00   $0.50 for the K175 level is $20 per hour.   $20.00      

The K102 level can process one batch of duraflex per hour;          1  each batch consists of 100 units. 100  No. of units in one hour rate per unit              

The manufacturing of duraflex also requires one-tenth of an hour of K175 workers' time 0.10  10.0   $2.00  for each unit manufactured.                          

Manufactured overhead is allocated at the rate of $200 per batch and $30 per $200.00  per batch DIirect labor-hour. $30.00  per direct labor-hour.    

       

13.) An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 6% yields, what yield must municipals offer for the investor to prefer them to corporate bonds

Answers

Answer:

the yield that must offer for the investor in order to prefer them is 4.2%

Explanation:

The computation is shown below:

The after tax yield is

= Corporate bond yield × (1 - tax rate)

= 6% × (1 - 0.30)

= 6% × 0.70

= 4.2%

hence, the yield that must offer for the investor in order to prefer them is 4.2%

The same is relevant


What is the best definition of marginal cost?

the possible income from producing an additional item

the price of producing one additional unit of a good

the additional income gained from selling an additional good

the financial gain from business activity minus expenses

Answers

Answer:

B

Explanation:

100% ed genuity

The best definition of marginal cost is B. the price of producing one additional unit of a good or service.

What is marginal cost?

The marginal cost or variable cost is the change in the total production cost resulting from producing one additional unit.

The marginal cost can be computed by dividing the total cost by the total quantity.

Thus, the best definition of marginal cost is Option B.

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If the government issued license to pollute a total of 1,600 tons of emissions, the market price to emit 1 ton of emissions would equal:___________.

Answers

Answer:

$450 per ton.

Explanation:

The government has allowed to pollute 1600 ton of emission. The business has secured license from the government to run its business activities and drain the polluted waste in the sea. The total pollution allowed is 1600 tons and the cost of securing the license is $720,000. The cost per ton of emission would be $450.

Sam​ Snead, the owner of​ Snead's Fine Golf​ Wear, used $1800 of his personal funds to go on vacation. Which of the following is the most appropriate treatment regarding this​ transaction? A. Travel expense 1,800 Cash 1,800 B. Withdrawals 1,800 Cash 1,800 C. Record a memorandum in the general journal D. Do not record the transaction in the general journal

Answers

Answer:

D. Do not record the transaction in the general journal

Explanation:

There is no need to record the transaction in the general journal since the money that was actually spend by Sam Snead happens to be his own personal fund rather than the company's fund (That is, the Golf Wear company). Funds belonging to the company are those that deserve to be recorded in the general journal.

Perceptual skills can be enhanced
by
Select one:
a. Knowing and perceiving on
self accurately
b. Being empathetic
c. Both are incorrect
d. Both are correct

= Both are correct ​

Answers

Answer:

D

Explanation:

A and B both effect Perceptual skills so it would be D

An internal study by the Technology Services department at Lahey Electronics revealed company employees receive an average of two emails per hour. Assume the arrival of these emails is approximated by the Poisson distribution.
a. What is the probability Linda Lahey, company president, received exactly 1 email between 4 P.M. and 5 P.M. yesterday?
b. What is the probability she received 5 or more emails during the same period?
c. What is the probability she did not receive any emails during the period?

Answers

Answer:

0.2706 ; 0.05265 ; 0.1353

Explanation:

Given that :

λ = 2

According to the poisson distribution formula :

P(x = x) = (λ^x * e^-λ) / x!

P(x = 1) = (2^1 *e^-2) / 1!

P(x = 1) = (2 * 0.1353352) = 0.2706

P(x ≥ 5) = 1 - P(x < 5)

1 - P(x < 5) = 1 - [p(x = 0) + p(x = 1) + p(x = 2) + p(x = 3) + p(x = 4)]

We obtain and add the individual probabilities. To save computation time, we can use a poisson distribution calculator :

1 - P(x < 5) = 1 - (0.13534+0.27067+0.27067+0.18045+0.09022)

1 - P(x < 5) = 1 - 0.94735 = 0.05265

P(x ≥ 5) = 1 - P(x < 5) = 0.05265

Probability that no emails was received :

x = 0

P(x = 0) = (2^0 *e^-2) / 0!

P(x = 0) = (1 * 0.1353352) / 1 = 0.1353

what do Librarians need to do after they have jobs?
a. attend conferences where they train other librarians
b. volunteer in schools to advise students about how to use libraries
c. slowly share their knowledge with librarians in other locations
d. continually train to stay up to date on information technology developments

Answers

The action that a Librarians need to do after they have jobs is to  continually train to stay up to date on information technology developments.

Who is a librarian?

In a education sector, the "librarian" is an officer who is responsible for overseeing the daily operations of their library, either at the public or private level. They also work within a schools, religious institutions, in government libraries and research facilities.

Some of the typical roles and responsibilities of a librarian includes:

They provide a customer service for library usersThey provide suggestions to library users about new booksThey help the library users to check out booksThey oversee the team of assistant librarians and library aidsThey also help to develop fun and education programs for youths and adults

In conclusion, the action that a Librarians need to do after they have jobs is to  continually train to stay up to date on information technology developments. Therefore, the Option D is correct.

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Answer:

D.

Explanation:

Edge 2023

Suppose that the California legislature passes a law that severely restricts carbon dioxide emissions from automobiles in that
state. A group of automobile manufacturers files suit against the state of California to prevent the enforcement of the law. The
essentially the same as carbon dioxide emission standards. According to the automobile manufacturers, it is unfair to allow
ralifornia to impose more stringent regulation
automakers claim that a federal law already sets fuel economy standards nationwide and that fuel economy standards are
s than those set by the federal law. Using the information presented in the chapter,
answer the following questions. Are the plaintiffs seeking a legal remedy or an equitable remedy?

Answers

Answer:

The plaintiffs are seeking an equitable remedy.

Explanation:

Legal remedies basically involve monetary compensations, in other words, the non-breaching party (in this case case manufacturers) sue in order to receive money.

While equitable remedies do not involve monetary compensations, instead they seek other types of solutions.

Bettner, Inc., is a calendar year corporation whose financial statements for 2015 and 2016 included errors as follows:
Year Ending Inventory Depreciation Expense
2015 $ 12,000 overstated $ 22,300 overstated
2016 8,000 understated 6,000 understated
Assume that inventory purchases were recorded correctly and that no correcting entries were made at December 31, 2015, or December 31, 2016. The errors were discovered in 2017, after the 2016 financial statements were issued.
Required:
Ignoring income taxes, prepare the journal entry Bettner would make in 2017 to correct the errors.

Answers

Answer:

i. For the Understatement of Inventory - Rectification

Journal Entry                            Debit        Credit

Inventory A/c                            $8,000

To Profit and loss adjustment a/c            $8,000

ii. To Rectify overstatement of Depreciation Expense

Journal Entry                                 Debit       Credit

Profit and loss adjustment A/c   $16,300

To Depreciation Expense                            $16,300

(22,300 - 6,000)

In the case of an expansionary_____policy, the interest rate rises, while in the case of an expansionary _____ policy, the interest rate falls.
Select one:
a. fiscal; monetary
b. monetary, monetary
c. monetary, fiscal
d. fiscal; fiscal

= fiscal; monetary​

Answers

With an expansionary fiscal policy, the interest rate rises, while with an expansionary monetary policy, the interest rate falls.

What is an Expansionary fiscal & monetary policy?

This is when an increases in money supply is stimulated by raising spending or cut taxes while the latter is when the cost of borrowing i reduced to stimulate an economy.

Therefore, the Option A is correct.

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Is $1970.00 rental income debit or credit

Answers

the answer is debit i believe

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%

Answers

Answer:

The tax currently owed to the U.S. government is:

$18,900

Explanation:

a) Data and Calculations:

Income generated by the foreign subsidiary = $1,000,000

Tax paid by the subsidiary in its country of residence = $400,000

Dividend paid to the U.S. parent = $54,000

Federal tax rate = 35%

Tax on the dividend = $18,900 ($54,000 * 35%)

b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation.  This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.

What can a speaker do to ensure that they are respectful of their audience, especially when speaking to a skeptical audience or an audience that has different values than their own?

Answers

ANSWER

Always state the facts pertaining to your speech.  

Always avoid stereotypes during a speech.  

Never bash or be bias.  

Remain objective.  

Have respect for the people and their values as well as beliefs .

Explanation:

A new machine comes with 200 free service hours over the first year. Additional time costs $180 per hour. What are the average and marginal costs per hour for the following quantities?
a) 125.
b) 225.
c) 325.

Answers

Answer:

a) 0, 0

b) 180 per hour, 20per hour

c) 180 per hour , 69.2 per hour

Explanation:

We are to calculate the average and marginal costs per hour of the given value above

a) Given Number of hours is 125, but we are told that the new machine comes with 200 free service hours over the first year. Then MARGINAL COST= 0 because the service can be equal to 200hours and the given 125 hours is less than that.

then AVERAGE COST = ZERO

(b) we are Given 225 number of hours

Additional time costs is given as $180 per hour.

Then we have $180 per hour as MARGINAL COST.

Total cost can be calculated as

= [$180 × (225 - 200)]

=[ $180 ×25] = $4,500

Average cost can be calculated as

ratio of Total cost to Number of hours i.e $4,500/225

= 20per hour

C)we are Given 325 number of hours

Additional time costs is given as $180 per hour.

Then we have $180 per hour as MARGINAL COST.

Total cost can be calculated as

= [$180 × (235 - 200)]

=[ $180 ×125] = $22,500

Average cost can be calculated as

ratio of Total cost to Number of hours i.e $22,500/325

= 69.2per hour

Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.
a) true
b) false

Answers

Answer:

b) false

Explanation:

Cash flow determines the cash position of the company whether the company is able to pay the obligations or not. It could be determined by analyzing the inflows of cash and outflows of cash

While on the other hand GAAP is the accounting principle that is compuslory for each and every organization to follow it

Therefore the given statement is false

While managing political
behaviours
in organization, the manager
requires discouraging:
Select one:
a. Dialogue
b. Negotiation
c. Relationships
d. Self interest

= Self interest

Answers

Answer:

You are right it is D

Explanation:

Having Self Intrest will cause selfishnes while doing political things.

Assume, for Mexico, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production o! oranges:________

a. Mexico has a comparative advantage over other countries and Mexico will export oranges.
b. Mexico has a comparative advantage over other countries and Mexico will import oranges.
c. Other countries have a comparative advantage over Mexico and Mexico will export oranges.
d. Other countries have a comparative advantage over Mexico and Mexico will import oranges.

Answers

Answer: Mexico has a comparative advantage over other countries and Mexico will export oranges

Explanation:

Based on the information given in the question, we can see that Mexico has a comparative advantage. This implies that Mexico can produce oranges at a lower opportunity cost when it is compared to other countries.

In this case, since Mexico has a comparative advantage over other countries, it implies that Mexico will export oranges.

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

Division
Osaka Yokohama
Sales $3,000,000 $9,000,000
Net operating expenses $210,000 $720,000
Average operating assets $1,000,000 $4,000,000

Required:
a. For each divisions, compute the return on investment (ROI) in terms of margin and turnover. (Do not round intermediate calculations.)
b. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division.


Answers

Answer:

1. Rate of Interest = Net operating expenses/Average operating assets

Osaka = $210000/$1000000 = 0.21 = 21%  

Yokohama = $720000 / $4000000 = 0.18 = 18%

2.                                                Osaka        Yokohama

Average operating assets   $1,000,000    $4,000,000

M. required return at 15%     $150,000       $600,000

Net operating income          $210,000       $720,000    

Minimum required return     $150,000       $600,000

Residual income                   $60,000       $120,000

Assume that Nevermore, Inc., a U.S.-based subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02
How many PKR does the MNC need to obtain the $US 1 million needed?

Answers

Answer: 50,000,000 Pakistani rupees (PKR)

Explanation:

The company wants to raise enough money in Pakistani rupees to match a million American dollars.

The rate is a Rupee to $0.02.

A million dollars will be:

= 1,000,000/0.02

= 50,000,000 Pakistani rupees (PKR)

Brazil can produce 1 unit of sugarcane with 1 unit of labor and 1 iPod with 8 units of labor, and China can produce 1 unit of sugarcane with 2 units of labor and 1 iPod with 4 units of labor. Which of the following is TRUE?

a. Before trade, China's opportunity cost of one unit of sugar cane is two iPods.
b. China has an absolute advantage in sugar cane production.
c. Both parties benefit if they specialize and trade at terms of one unit of sugar cane for two iPods.
d. With trade, Brazil should specialize in sugar cane and China in iPods.

Answers

Answer:

d. With trade, Brazil should specialize in sugar cane and China in iPods.

Explanation:

As from the given situation it can be seen that Brazil has an absolute advantage while producing the sugarcane as it takes one unit of labor for generating one unit of sugarcane

On the other hand, china has an absolute advantage for generating an ipod as it takes four unit of labor to generate one ipod

Therefore the option d is correct

The difference between the income
received from abroad for rendering factor services by the normal residents of the country to the rest of the world and income paid for the factor services rendered by
nonresidents in the domestic territory of a country is known as:

Select one:
a. Net Factor Income from Abroad
b. Capital consumption allowances
c. Depreciation
d. Subsidy

= Net Factor Income from Abroad​

Answers

The difference between the income received from abroad for rendering factor services and income paid for the factor services rendered by nonresidents is known as Net Factor Income from Abroad. Thus the correct  option is (B).

What is Income?

Income refers to the money received by the individual over a period of time. In Business, income refers to the revenue generated after selling the goods and services to the customers.

Net factor Income from abroad refers to the income received from aboard after providing the services  by the residents of the country to the rest of the world minus income paid for taking services from the domestic country.

Thus the correct  option is (B).

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You purchase a $1,000 asset for $800. It pays $60 a year for seven years at which time you receive the $1,000 principal. Prove that the annual return on this investment is not 9 percent.

Answers

Answer:

Please check explanations for answer

Explanation:

Here, we want to prove that the ROI is not 9 percent per annum

The amount spent buying the item is $800

Now, there is $60 payment per year for 7 years

The total amount received as the total of payment per year after the 7 years will be;

7 * 60 = $420

Now, instead of the $800 paid initially, $1000 was returned as the principal

What this mean is that there is an extra $200 gain including the $420 that was paid earlier

So the total amount of gain on the investment is $200 + $420 = $620

Now, we proceed to calculate the percentage this was, relative to the amount invested

That would be;

620/800 * 100%

= 77.5%

So there was a 77.5% ROI

so the yearly return on this will be;

77.5%/7 = 11.07 which is approximately 11%

So the ROI is 11% and not 9%

Suppose your own demand curve for sweaters slopes downward. Suppose also that, for the last sweater you bought this week, you paid a price exactly equal to your willingness to pay. Then
Use letters in alphabetical order to select options
A your consumer surplus on the last sweater you bought is zero.
B you already have bought too many sweaters this week.
C your consumer surplus on all of the sweaters you have bought this week is zero.
D you should buy more sweaters before the end of the week.

Answers

Answer:

A

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

If willingness to pay =  price of the good , then consumer surplus is zero

Mark works for a financial company. He has been tasked to protect customer data. He decides to install a mantrap and an HVAC system in the data center. Which of the following concepts has he addressed?
A. Availability.
B. Integrity.
C. Confidentiality.
D. Recovery.
E. Accountability.

Answers

Answer:

a

c

Explanation:

Compute 2018 taxable income in each of the following independent situations.
a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000.
b. Sybil, age 40, is single and supports her dependent parents, who live with her. Sybil also supports her grandfather, who lives in a nursing home. She has AGI of $80,000 and itemized deductions of $8,000.
c. Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of $10,100.
d. Amelia, age 33, is an abandoned spouse and maintains a household for her three dependent children. She has AGI of $58,000 and itemized deductions of $10,650.
e. Dale, age 42, is divorced but maintains the home in which he and his daughter, Jill, live. Jill is single and qualifies as Dale’s dependent. Dale has AGI of $64,000 and itemized deductions of $9,900.

Answers

Answer:

a. Drew and Meg are married and filing a married joint return. The standard deduction of a married joint return is $24,400 but it is lower

AGI                                       $125,000

Less: Itemized deduction   $27,000

Taxable income                  $98,000

b. Sybil's filing status is head of household. The Standard deduction for head of household is $18,000 in 2018 which is higher than itemized deductions of $8,000.

AGI                                       $80,000

Less: Itemized deduction   $18,000

Taxable income                  $62,000

c. Scott is a surviving spouse. The standard deduction will be equal to that of married filling joint return which is $24,400

AGI                                       $75,000

Less: Itemized deduction   $24,400

Taxable income                  $50,600

d. Amelia is an abandoned spouse. She can file as head of household. The standard deduction for the year 2018 is $18,000 which is higher than  itemized deductions of $10,650.

AGI                                       $58,000

Less: Itemized deduction   $18,000

Taxable income                  $40,000

e. Dale is divorced and filing status is head of household. The standard deduction for the year 2018 is $18,000 which is higher than  itemized deductions of $9,900

AGI                                       $64,000

Less: Itemized deduction   $18,000

Taxable income                  $46,000

Marginal Cost of Producing Pies
$1,60
$1.40
$1.20
Marginal Cost
$1.00
$0.80
$0.60
SO 40
S020
S0.00
O Pies
1 Pies
5 Pies
6 Pies
2 Pies 3 Pies 4 Pies
Quantity Supplied
According to the graph, the marginal cost begins to increase when the producer makes
O two pies
O three pies
O four pies
O five pies
Save and Exit
Next
Mark this and return
Su

Answers

Answer:

O four pies

Explanation:

Marginal cost is the expenses associated with the production of an extra item. It the cost attached specifically to the production of one more unit.

From the graph, the marginal rise sharply from 0 units to 1 rapidly. Usually, the marginal cost of the 1st unit is equal to its cost price. The second item's marginal cost is the difference between the cost price of the second item and the first item.

From the graph, the marginal cost starts to rise after the fourth item.  The marginal cost of the fourth item is the difference between the fourth and third item.

Answer: C) FOUR PIES

ReNew Corporation raises funds to build renewable energy systems by issuing 3-year bonds with a coupon rate of 5% and a face value of $1,800. Assume that the market interest rate for a 3-year bond issued by a firm like ReNew is currently the same as the coupon rate. The price of each of these bonds is , which means that the bonds sell at .

Answers

Answer:

$1,800

Explanation:

The price of the bond today is the present value of future cash flows, which are the coupon payments and the face value receivable by bondholders at redemption in 3 years.

When a bond has the same coupon rate as the yield, the bond would sell at par which is the $1,800 par value.

This is further affirmed using the formula below:

bond price=face value/(1+r)^n+annual coupon*(1-(1+r)^-n/r

face value=$1,800

r=yield=5%

n=number of annual coupons in 3 years=3

annual coupon=face value*coupon rate=$1800*5%=$90

bond price=$1800/(1+5%)^3+$90*(1-(1+5%)^-3/5%

bond price=$1800/1.05^3+$90*(1-(1.05)^-3/0.05

bond price=$1800/1.157625+$90*(1-0.863838)/0.05

bond price=$1800/1.157625+$90*0.136162/0.05

bond price=$ 1,554.91  +$ 245.09  

bond price=$ 1,800.00  

 

Five firms exist in the Liagiba industry. Their respective market shares are 35, 25, 15, 15, and 10 percent. Five firms exist in the Haras industry. Their respective market shares are 35, 30, 25, 8, and 2 percent.

Required:
What is the Herfindahl index for the both industries?

Answers

Answer:

Liagiba industry = 2400

Haras industry = 2818

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

Liagiba industry = 35² + 25² + 15² + 15² + 10² = 1225 + 625 +225 + 225 + 100 = 2400

Haras industry = 35² + 30² +25² + 8² + 2² = 1225 + 900 + 625 + 64 + 4 = 2818

Complete the steps you will use to create a document using a word processor.
Pick an existing template
Format the fonts of the text as required
Use Save As to save the document with
an appropriate name.
Open your word processing application.
Replace the placeholders with text and
images.

Answers

Answer:

open word app

pick template

format font

replace placeholders

save as

Explanation:

both font and changing placeholders can be interchangable. I prefer to have the font right at the start.

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