If the price elasticity of demand for a product is 0. 5 and about raising the price by 8%. Then, the quantity to decrease is 4%
Price elasticity of demand = 0.5
Percentage increases in price = 8%
Price elasticity of demand = (Percentage change in quantity demanded)/(Percantage change in price)
0.5 = (Percentage change in quantity demanded)/8
Percentage change in quantity demanded = 0.5 × 8 = 4%
Therefore, if the price rises by 8% then as a result quantity demanded decreases by 4%.
An elastic demand is one where there is a significant shift in the amount sought as a result of a price change. A minor change in quantity required as a result of a price adjustment is referred to as an inelastic demand. A formula that produces an absolute number larger than 1 indicates that the demand is elastic.
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Currently aft is charged $3,898,800 depreciation on the income statement of andrews. andrews is planning for an increase in this depreciation. on the financial statements of andrews will this?
At the financial statements of Andrews will this: growth internet cash from Operations on the coins waft declaration.
Financial statements are written information that brings the business activities and the financial performance of a business enterprise. economic statements are regularly audited by way of government agencies, accountants, companies, and so on. to ensure accuracy and for tax, financing, or making investment purposes. The earnings announcement, stability sheet, and statement of coins flows are required economic statements. those three statements are informative equipment that buyers can use to research an agency's financial power and offer a short photo of a corporation's economic health and underlying price.
Financial statements are formal statistics of the financial activities and role of a business, individual, or other entity. relevant monetary facts are presented in a dependent manner and in a shape that is simple to understand.
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Firms are increasingly trying to expand their exports to what country because it has the world's second-largest population and a growing middle class?
China is now the second-largest economy and the third-largest market for U.S. exports. India is one of the fastest growing market
Parties can congregate in a market to facilitate the trade of goods and services. Typically, the parties involved are buyers and sellers. The market may be actual, like a physical store where customers interact with each other in person, or it may be virtual, like an online market, where customers and sellers do not interact physically. The availability of an arena, buyers, and sellers, as well as a product that can be bought and sold, are some of the fundamental features that help define a market. A market is any location where two or more parties can come together to conduct an economic transaction, even one that doesn't include cash.
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Differential cost is the difference in ________ between two alternatives.
a. average cost
b. total cost
c. median cost
d. marginal cost
Differential cost is the difference in average cost between two alternatives.
Differential cost refers to the difference between the price of two opportunity selections. The fee happens while a business faces several similar options, and a preference ought to be made by using selecting one alternative and dropping the other.
A differential in accounting compares the cost of two or more gadgets or the final results of 1 desire over another. The distinction in cost between the picks is the differential price. Opportunity price, then again, represents the benefits you may omit out on whilst selecting one alternative over any other.
So, the differential cost is the result of an opportunity direction of movement. For example, difference in charges can also rise up due to alternative of labor by machinery and distinction in fees of opportunity courses of movement will be the differential price.
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In the united states, which workers displaced by trade are able to adjust the easiest?
In the united states, workers displaced by trade can adjust the easiest for those in the service industries and those in the manufacturing industries.
Define Trade.The voluntary exchange of commodities or services between economic players is referred to as a trade. Since interactions are voluntary, trade is typically thought to be advantageous to both sides. Trading in the financial industry refers to the buying and selling of securities or other assets. Trade is characterized as the act of trading items, the marketplace where people purchase and sell products, or as a means of generating income. The trade-in tea, which involves importing tea from China and buying it in the US, is an illustration of trade. Working in sales is an example of trade.
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If the ratio of reserves to deposits (rr) increases, while the ratio of currency to deposits (cr) is constant and the monetary base (b) is constant, then?
The amount of reserves held by the banks would rise as the ratio of reserves to deposits rose. Due to this, there will be less loanable money in bank deposits. The quantity of money available for loans has decreased, while reserves have increased. Since the other money base is unchanged, the overall money supply declines.
A reserve is a sum of retained earnings that a corporation has set aside to bolster its financial position, pay off debt and credit, purchase fixed assets, expand the business, and fund other activities. These are typically carried out to prevent the money from being utilized for other things.
The amount that depository institutions keep in their accounts at their local Federal Reserve Banks is known as reserve balances with Federal Reserve Banks. The Board of Governor's Factors Affecting Reserve Balances - H has data that has been updated. Release of statistical data.
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Joseph needs to complete his income taxes for the year. he has already calculated his adjusted gross income. what does he need to do next?
Joseph needs to complete his income taxes for a year and so he has already calculated his adjusted gross income. He needs to subtract his itemized deductions next.
When Joseph has his total annual income and the total amount of his deductions, he needs to subtract his deductions from his total annual income. This will result in his annual adjusted gross income. Also, to get monthly adjusted gross income, divide this figure by 12.
Further, Joseph needs to subtract his itemized deductions. An itemized deduction is an expense which can be thus subtracted from adjusted gross income (AGI) in order to reduce one's tax bill.
Hence, itemized deductions can reduce your taxable income.
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What additional (if any) force(s)/variable(s) should be accounted for when applying the calculations used in the simulation to the real world? explain your answer.
In real-world projectile motions, we need to consider :
(i) the effect of air resistance: the air drag is a resistive force that affects both the vertical and horizontal motions of a projectile. Thus, the gravitational force is not the only force acting on the projectile, and the horizontal speed of the projectile doesn't remain constant.
(ii) the effect of the 3D initial velocity vector: if the projectile is needed to be in a 2D plane, then it should be shot perfectly without any 3rd components of the initial velocity. That is, if the projectile is even slightly tilted while shooting, then it'll not travel in a 2D plane, and hence we need to consider its motion in a three-dimensional plane.
Projectile motion is a shape of motion skilled with the aid of using an item or particle (a projectile) this is projected near Earth's surface and actions alongside a curved route below the motion of gravity most effective (in particular, the results of air resistance are passive and assumed to be negligible). This curved route turned into proven with the aid of using Galileo to be a parabola, however, can also be an instant line withinside the unique case while it's far thrown at once upwards.
The examination of such motions is called ballistics, and this type of trajectory is a ballistic trajectory. The most effective pressure of mathematical importance this is actively exerted on the item is gravity, which acts downward, hence supplying the item a downward acceleration closer to the Earth’s middle of mass. Because of the item's inertia, no outside pressure is wanted to hold the horizontal
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A 90-day note is signed on october 21. the due date of the note is? january 21 january 19 january 20 january 18
A 90-day note is signed on October 21. the due date of the note is January 19.
Reason:
90 days = 31-21=10 days in October + 30 days in November + 31 days in December + 19 days in January. Always start with the number of days in the first month and subtract the date of the note. (October: 31-21 = 10).
A bank will offer 90-day loan notes, a short-term financing option with a fixed interest rate, to clients or enterprises. Usually, a coupon is used to settle the note. This means that the full loan amount, plus interest, is due 90 days after the loan was issued.
A 90-day loan note is one of the many types of bank loans. It is known as a note rather than a bond since it has the shortest term available. Because it is a short-term loan, it has the highest annual percentage rate (APR) for repayment of any other bank loan. These loans are typically obtained in anticipation of a bonus or other unanticipated payment.
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The primary aim of strategic management at the business level is __________________.
The primary aim of strategic management at the business level is achieving a competitive advantage.
Business is the pastime of making one's dwelling or creating wealth via producing or shopping for and promoting products. it's also "any pastime or employer entered into for income.
A commercial enterprise is defined as an agency or enterprising entity engaged in industrial, commercial, or expert sports. organizations can be for-profit entities or non-income organizations. commercial enterprise sorts variety from restricted legal responsibility agencies to sole proprietorships, organizations, and partnerships.
The definition of commercial enterprise is a career or exchange and the purchase and sale of services or products to make earnings. An instance of commercial enterprise is farming. An instance of business is a residence sale.
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during the early years of globalization, outsourcing was primarily confined to blank activities. multiple choice question. promotion technology manufacturing service
Outsourcing was mainly limited to Manufacturing activities in the early years of globalization.
What is globalization and its example?The process of contact and integration between individuals, organizations, and governments on a global scale is known as globalization. The development of communications and transportation technologies since the 18th century has contributed to the acceleration of globalization.
This indicates that many traditions and practices that small communities share have spread to other communities that (before) had different practices and even different beliefs. The trading of goods like coffee or avocados is one good illustration of cultural globalization.
The phenomenon of globalization is complicated. As a result, it significantly affects a number of aspects of modern societies. Let's examine some of the biggest adverse repercussions of globalization thus far.
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Businesses such as hospitals, insurance companies, financial institutions, and attorneys convert resources into _____ products.
Any activity that sells products or services to customers with the intention of making a profit is considered a business.
What is customers ?Consumers are people or groups who desire to order things, use things they've bought, or use them for purposes that are largely social, familial, domestic, or similar and have nothing to do with business or entrepreneurial activity.
A consumer in an economy buys goods or services primarily for their own use as opposed to reselling them or using them for business purposes. Customers must spend money to purchase goods or services (or an equivalent). then consume (use up). Therefore, consumers are a vital part of any economy and have a significant impact on the economic structure of a capitalist society.
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What kind of research method would be best suited if you were hired by a real estate company to learn how the residents in a gated community feel about racial desegregation?
Surveys and interviews are the research method that would be best suited if we were hired by a real estate company to learn how the residents in a gated community feel about racial desegregation.
Surveys reflect a low-cost option research method for garnering a huge amount of data. They are a kind of descriptive research. They demonstrate the most excellent way to achieve a comprehension of an individual's attitude towards a matter. It provides a great aid in measuring a wide variety of unobservable data, such as stated preferences, traits, beliefs, behaviors, and factual information. It helps the researcher to determine validity, reliability, and statistical significance.
Interviews demonstrate a quantitative type of research method. This requires the researcher to ask questions and elicit facts or statements from the interviewee. It involves open-ended questions in a well-planned and executed manner.
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greg has one employee, sasha, who is a weak presenter and gets incredibly stressed out about presenting in workshops, but is an excellent writer. greg decides to emphasize sasha’s writing abilities and gives her opportunities to shine outside of the spotlight. greg is practicing
greg is practicing strengths based management
Whether it's a company, a nonprofit, or a government agency, management (or managing) is the administration of the organisation. It is the science and art of managing the business's resources. Setting an organization's strategy and organising the work of its staff (or volunteers) to achieve its goals through the use of resources such as financial, natural, technological, and human resources are all included in management. In management, the terms "run the business" and "change the business" are used to distinguish between the continuation of the delivery of goods or services and their adaptation to satisfy the changing needs of customers - see trend. Managers are another group of individuals who fall under the umbrella of "management."
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employees at middle-management levels engage themselves in business unit budgets and divisional policies and procedures.
The widely accepted theory of corporate strategic planning is straightforward current strategy:
top management evaluates its current strategy over a time horizon of several years while keeping an eye out for opportunities and threats in the outside world as well as by looking at the company's resources to determine its strengths and weaknesses. The management may create a number of different strategic scenarios and evaluate them in light of the organization's long-term goals. Management details the activities to be taken soon in order to start implementing the chosen strategy (or continuing a revalidated one).corporate Strategic planning is a less formal, nearly continuous process in smaller businesses. The president often meets with a small group of his managers to discuss strategic concerns and determine their future course of action. They don't require a complex, organised planning framework. Executives are able to examine strategic alternatives and the repercussions of their actions on an as-needed basis because to the functional organisation, even in relatively large but undiversified firms. current strategy Typically, there are only a few important executives involved in these choices, and they are all nearby enough to frequently meet for a casual get-together.
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Several u.s. compliance laws provide confidence in the financial markets. __________ are the primary beneficiaries of these laws.
Several u.s. compliance laws provide confidence in the financial markets. shareholders are the primary beneficiaries of these laws.
Who is a shareholder?Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations. With this ownership structure, they can benefit from a company's success.
In general, a shareholder is an investor since they expect their investment in their firm stock to generate a profit for them. By this reasoning, however, an investor is not necessarily a shareholder because they can invest in a corporation without obtaining shares.
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the norwegian kroner:usd exchange rate is 10:1 while the norwegian kroner:euro rate is 12:1. if you start with 1,000,000 euros, how many usd will you have, using these exchange rates
Given the exchange rate of NK:USD is 10:1 means 1 dollar is divided by 10 to get the Norwegian Kroner, Similarly exchange rate of
NK: ER is 12:1 means 1 euro is divided by 12 to get the Norwegian Kroner through which we get 8,333.4 USD if we use 1,000,000 euros
Norwegian Kroner(NK) : Euro Rate(ER) = 12:1
1,000,000 euros will be 83,334 i.e., (1,000,000)*1/12 = 83,334
But, Norwegian Kroner : USD = 10:1
So, the money after facing the exchange rate will be 8,333.4 USD
(83,334)*1/10 = 8,333.4
The exchange rate is the cost of one country's currency in comparison to another country's currency. The exchange rate is "fixed" when countries use gold or another recognized standard and each currency is valued at a specific quantity of the metal or other standard.
Calculations of how much one currency will exchange for another are usually done using data from each of the nations' economies, market interest rates, gross domestic products, and unemployment rates. They are widely referred to as market exchange rates and are established in the global financial market.
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What is the debit to record a purchase order received?
a. accounts receivable
b. cost of goods sold
c. there is no journal entry
d. sales
Accounts receivable is the debit to record a purchase order received. Hence, option A is correct.
What is Accounts receivable?Accounts receivable refers to the sum of money due to a company for goods or services delivered or utilized but not yet paid for by customers. Accounts receivable are listed as a current asset on the balance sheet. The term "AR" refers to any money that clients owe for purchases they made using credit.
Accounts receivable are the unpaid obligations owed by customers for products or services they have received but have not yet paid for.
Thus, option A is correct.
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managerial accounting . multiple choice question. provides no value to the management team helps managers achieve the organization's goals is only used by top management is used for external reporting
The five main goals of managerial accounting are supported by a variety of tools, methods, and viewpoints that offer value to a business.
The discipline of management accounting, often known as managerial accounting, is useful in giving the management financial information and the right resources to aid managers in decision-making.
Managerial accounting can be used to make both short-term and long-term choices about a company's financial health. Managerial accounting supports managers in making operational choices that aim to improve the operational effectiveness of the business and support long-term investment choices.
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the of change required to remain competitive or simply keep up has created an organizational climate in which hundreds of projects are implemented concurrently. (enter only one word per blank.)
The velocity of change required to remain competitive or simply keep up has created an organizational climate in which hundreds of projects are implemented concurrently.
How does a company remain competitive?The competitiveness of an organization is achieved in conjunction with various organizational actions, such as its strategy and management. Some of the most essential characteristics to achieve competitive advantages are through innovation, quality in products and services and organizational ethics.
With the increase in competitiveness in the globalized environment, companies need to stand out in several areas, therefore, several projects are implemented simultaneously, requiring management that includes:
Task delegationFocus and consistencyCooperationTask prioritizationUse of resources and information systemsCommunication developedFeedbackTherefore, to remain competitive, a company must be innovative and offer value to its stakeholders through joint efforts.
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You have an investment opportunity that requires an initial investment of today and will pay in one year. what is the irr of this opportunity?
Initial investment = $8,500 Cash flow in 1 year initial investment of today and will pay in one year.
What is investment ?Investment is the commitment of a resource to a value increase over time. To invest, one must give up a current resource, such as time, money, or effort.
Profiting from the asset being financed is the aim of financial investment. Returns from investments might come in the form of dividends, interest, rental income, or a combination of income and capital gains. Unrealized capital gains (or losses) or income from investments, such as unrealized capital gains, can also be a type of it. The return could also include monetary gains or losses brought on by changes in foreign exchange rates.
Investors can often expect larger returns on riskier investments.
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A roth individual retirement account allows you to draw a fixed amount that is not taxed. the maximum amount that an individual can contribute annually to a roth ira is $5,000. determine the future value of such an account given that the annual percent rate is 1.2%, and an annual payment of $2,675.32 is made at the end of each year for 30 years. round to the nearest cent. a. $95,245.67 b. $95,340.91 c. $97,074.97 d. $95,923.88
The future value of a Roth Individual Retirement Account will be $95,923. 88 (Option D)
What is simple interest?"Simple" interest is the straightforward crediting of cash flows which is associated with some investment or deposit.
As the deposits are made at the year ending, the relevant formula that can be used here employing the formula to calculate Future Value or FV of ordinary Annuity.
FV = M * (((1 + r)^n - 1) / r)
FV = Future value after 30 years = ?
Given,
Annual payment, M = $2,675.32 Annual interest rate, r = 1.2%, or 0.012Number of years, n = 30Substituting the values into the above equation
FV = $2,675.32 ×[tex](((1+0.012) 30-1)^3^0/0.012)[/tex]
FV = $2,675.32 × 35.8551048895342
FV = $95,923.88
The future value or FV of the account is FV = $95,923.88
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Answer:D) $95,923. 88
Explanation:edge
Most immigrants who came to work in u.s. industries had worked in their home countries as ______.
Most immigrants who came to work in U.S. industries had worked in their home countries as Rural farm workers.
Who are immigrants?Immigrants in the international flow of people to a country of destination where they are not natives or citizens in order to establish themselves as long-term residents or legal residents. An immigrant is, to put it simply, a person who was born outside of the country they currently call home. That person will always be an international migrant, regardless of whether they have acquired citizenship in the country of destination, served in its army, wedded to a native, or have another status. A person who relocates to a new country is referred to as an immigrant. A woman who immigrates to the US from Mexico is an instance of an immigrant.
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tech solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period’s estimated level of client service. the company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. the firm’s actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours.
Firstly in this Job Costing we need to calculate overhead rate by dividing total estimated overheads with total direct labour hours, And then evaluate total cost by adding direct material, direct labour & overheads allocated. Through which we get overhead rate as $9 and total cost as $61,520
Predetermined manufacturing overhead rate = total estimated overhead costs ÷ total direct labour hours
Over head rate = (680,000 ÷ 80,000) + 0.5 = $9 per direct labor hour
Calculation of Total cost:
Total cost= direct material + direct labor + overheads allocated
Total cost= 38,000 + 21,000 + 280*9
Total cost= $61,520
Hence Total Job cost is $61,520.
A job order costing method totals all the expenses related to a particular batch of goods. Small batch sizes are ideal for this method, especially when each batch's goods differ from those produced by previous batches.
A system for job order costing might be very intricate. It must monitor data from various sources, such as the following:
Only the line items relevant to a job should be charged to that job from supplier invoices.
Payroll records, which may also include payroll taxes, overtime, and shift differentials, from which the hours worked on a given job are charged to that job.
When inventory goods are removed from stock and charged to a job as needed, material expenses are incurred.
An overhead allocation that comes from a cost pool and is applied to each work in accordance with some type of utilization, such as the number of labor hours used or the number of machine hours used.
Your answer is incomplete. Kindly find the missing content below:
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor- hours. At the beginning of the year, it estimated that 80,000 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $680,000 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firms actual overhead cost for the year was $692,000 and its actual total direct labor was 83,000 hours. Required: a. Compute the predetermined overhead rate. b. During the year, Tech Solutions started and completed the Xavier Company engagement. The following information was available with respect to this job: Direct Material $38,000Direct Labour Cost $21,000Direct Labour hours worked 280Compute the total job cost for the Xavier Company engagement.
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Preset costs for delivering a product or service under normal conditions are called:_____.
Standard costs are predetermined expenses for supplying a good or service under typical circumstances.
Since real costs cannot be predicted in advance, standard costs are approximations of the actual expenses incurred during a company's manufacturing process. This aids in budget planning for businesses. The difference between the actual cost expended and the cost that would have been expected to produce the items under normal circumstances is called the standard cost. Standard cost is a fixed price. A planned cost, an anticipated cost, an expected cost, a budgeted unit cost, a projected cost, or the cost that "should be" are all terms used to define a standard cost. A manufacturer's yearly profit strategy and operational budget frequently include standard costs as a crucial component. read more is $15 per hour, and the typical fixed cost is $100,000. Examples include insurance payable, rent payable, utility payment, salary due to office personnel, office supplies payable, etc. Therefore, 10 hours are needed to produce one unit in total.
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6. A major benefit of socialism is the
Answer:
The major benefit of socialism is social equality, because income is taken from the wealthier people through taxes and redistributed to the poorer members of the population though government programs.
Explanation:
ocean corporation sells a product for $500 on account to great atlantic sales. this transaction will be recorded in the . question content area bottom part 1 a. sales journal b. purchase journal c. cash payments journal d. cash receipts journal
ocean corporation sells a product for $500 on account to great Atlantic sales. this transaction will be recorded in the sales journal.
Sales journal is an accounting journal that is used as a tool to record sales transaction activities. This sales transaction will be recorded in various accounts using debit and credit rules.
Usually the information stored in the sales journal for each transaction includes:
Transaction dateAccount numberCustomer's nameInvoice number Sales amount (accounts receivable debit and sales account credit)The sales journal basically only records accounts receivable, which means sales made in cash are not recorded in it.
Sales made in cash are recorded in the cash receipts journal account. But sometimes in practice there are still those who combine cash sales in the sales journal account.
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Canada and the u.s. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if?
Both the United States and Canada produce computer software and wheat. If Canada's opportunity cost of producing a bushel of wheat is lower than that of the United States, then Canada is considered to have a comparative advantage in producing wheat.
OPPORTUNITY COST: In economics, opportunity cost refers to the value of what you must forgo in order to choose something else.
The ratio of what you give up to what you get could be used as a formula to determine opportunity costs.
Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing wheat if The opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S.
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An investor purchased a corporate bond at 98th in 5/8 and sold the bond at 101 and 3/4 how much money did he make?
The correct option is (C) profit of $31.25.
The investor made a Profit of $31.25 on this transaction.
What is a corporate bond?• A corporation may issue a bond known as a “corporate bond” to obtain capital for a number of purposes, including ongoing operations, mergers and acquisitions, or business expansion.
• The phrase is typically used to describe debt securities with a longer maturity of at least one year.
• Commercial paper is a term used to describe corporate debt instruments with a maturity of less than one year.
When the bond was sold, the investor made a profit of 3 1/8 points. We know that a bond is worth one point ($10), three points ($30), and an eighth of a point ($1.25). We have a profit of $31.25 after adding those figures together.
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The complete question is:
An investor purchased a corporate bond at 98 5/8 and sold the bond at 101 ¾. How much money did he make or lose on this transaction (excluding commissions)?
A)Loss of $31.25
B)Profit of $3.125
C)Profit of $31.25
D)Loss of $3.125
What is the present value of a 670 paymnet in three years when the discounte rate is 7 pecent?
The present value of a 670 payment in three years when the discount rate is 7 percent i $546.92.
Cash flow refers to the net balance of coins stepping into and out of an enterprise at a specific factor in time. cash is continuously entering into and out of an enterprise. for example, when a retailer purchases stock, money flows out of the commercial enterprise closer to its suppliers.
Cash flow is a dimension of the number of coins that comes into and from your commercial enterprise in a specific time period. when you have advantageous coins flow, you have got greater cash coming into your enterprise than you've got leaving it so that you pay your payments and cowl other expenses.
$546.92
Statement showing Cash flows
Particulars Time PVF 7% Amount PV
Cash flows 1.00 0.9346 - -
Cash flows 2.00 0.8734 - -
Cash flows 3.00 0.8163 670.00 546.92
Present value of Cash Flows 546
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____is an account that consists of a company's cumulative net income less any losses and dividends declared since its inception.
Retained earnings is an account that consists of a company's cumulative net income less any losses and dividends declared since its inception.
What is Retained earnings ?
The cumulative net income of a corporation that is kept by the corporation at a specific moment in time, such as at the conclusion of the reporting period, is referred to as retained earnings (also known as plowback). The net income (or net loss) at that time is transferred from the profit and loss account to the retained earnings account at the conclusion of the period.If the retained profits account has a negative balance, it may also be referred to as having an accumulated deficit, accumulated losses, or another similar word. Any portion of a credit balance in the account may be capitalized by the issuance of bonus shares, and the remaining portion is carried over to the following period. The balance may then be used to distribute dividends to shareholders. Dividends must only be paid out of the retained earnings account's positive balance at the time of payment, according to some legislation, notably those of the majority of US states. This safeguards creditors from a company's dividend-based liquidation.This safeguards creditors from a company's dividend-based liquidation. However, a few governments let a corporation's accumulated deficit to keep growing when dividends are paid. A liquidating dividend or liquidating cash dividend is what this is.To learn more about Retained earnings visit:https://brainly.com/question/17099331
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