Yield rate to maturity for zero coupon bonds are currently quoted at 8.5% for one-year maturity, 9.5% for two-year maturity, and 10.5% for three-year maturity. Let i be the one-year forward rate, deferred one year, implied by current yields of these bonds.Calculate i.

Answers

Answer 1

Answer: 10.5%

Explanation:

As i is the one-year forward rate, it can be calculated thus:

= (1 + Two-year maturity rate)² / ( 1 + one-year maturity rate) - 1

= (1 + 9.5)²/ (1 + 8.5%) - 1

= 10.5%


Related Questions

How does cultural knowledge help a company achieve success?
A.
It helps a company gain points of parity.
B.
It helps a company interact with its competitors.
C.
It helps a company achieve points of difference.
D.
It helps a company interact with sponsors.
E.
It helps a company target its customers better.

Answers

Cultural knowledge can play a significant role in a company's success by helping it achieve points of difference in the marketplace. Understanding cultural norms, beliefs, and values can allow a company to create products and marketing campaigns that resonate with its target audience, leading to increased sales and customer loyalty.

For example, a company that understands the cultural significance of certain colors or symbols in a particular region can design products that are more appealing to local consumers. Additionally, cultural knowledge can help a company avoid missteps that may offend or alienate its target audience. By being culturally sensitive, a company can build a positive reputation and gain a competitive advantage over its rivals. Overall, cultural knowledge enables a company to tailor its offerings to the unique needs and preferences of its target market, leading to increased customer satisfaction and long-term success.

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Whispering Winds Corp. has these accounts at December 31: Common Stock, $12 par, 6,100 shares issued, $73,200; Paid-in Capital in Excess of Par Value $19,600; Retained Earnings $44,600; and Treasury Stock, 560 shares, $12,320.

Required:
Prepare the stockholders’ equity section of the balance sheet.

Answers

Answer:

The answer is $125,080.

Explanation:

Common stock = $73,200($12 par x 6,100 shares)

Paid-in Capital = $19,600

Retained Earnings = $44,600;

Treasury Stock = $12,320( for 560 shares).

The stockholders’ equity is therefore :

$73,200 + $19,600 + $44,600 - $12,320

= $125,080.

NOTE: Treasury stock was subtracted from the rest because treasury stocks reduce the total number of stocks outstanding

Critics of the North American Free Trade Agreement argued that opening our borders to free trade with Mexico would result in U.S. firms moving all of their factories to Mexico and the U.S. running large trade deficits with Mexico. Comment on the concerns of these critics using your knowledge of international trade and net capital flows. This criticism should _______________________

Answers

Answer:

The criticism is true to a certain degree, and unjustified to another degree.

Explanation:

It is true in the sense that the U.S. has indeed lost a lot of manufacturing to Mexico, simply because Mexico has far lower labor costs, and U.S. manufacturers have decided to take advantage of that by taking their plants to Mexican states.

It is also true that Mexico has been running a trade surplus with the United States in recent years, mainly because of the large manufacturing sector that Mexico has been developing.

On the other hand, the criticism is unjustified because neither a trade deficit nor the moving of manufacturing to Mexico mean that the United States as a whole is in worst condition than before NAFTA. In fact, most economists agree that free trade is a good thing for the economy as a whole, and that most people benefit from the lower costs and specialization that trade brings about.

The problem lies then, in the people who lose their jobs: formerly unionized manufacturing workers from the Rust Belt, for example. These people need to be helped with government assitance, both in terms of welfare, and training, so that they can find new jobs and make ends meet in the meanwhile.

Given the following information, analyze XYZ Company's liquidity. Year 2013 Total quick assets $30,000 Total current assets $40,000Total current liabilities $22,000 Acid-test ratio 1.36 Current ratio 1.82 Industry acid-test ratio 70 Industry current ratio 1.65 A. They are more liquid than others in their industry. B. They are less liquid than others in their industry. C. They have sufficient quick assets to pay off short-term debt if needed. D. They don't have sufficient liquid assets to pay off short-term debt if needed.

Answers

Answer:

A. They are more liquid than others in their industry. C. They have sufficient quick assets to pay off short-term debt if needed.

Explanation:

The Acid-test and current ratios are used to measure the liquidity of a company with higher figures meaning more liquidity. XYZ Company has a both a higher acid-test and current ratio so they are more liquid than others in their industry.

The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.

ETP Corp. paid an annual dividend last year of $5 per share. The company follows a policy to raise dividends each year by 2%. The company will be in business for 8 years and not have a liquidating dividend. The required rate of return for this investment is 10%. What is the price of this stock today?

a. 63.75
b. 28.91
c. 28.34
d. 62.50

Answers

Answer: b. $28.91

Explanation:

The current price will be the present value of all future dividend payments till the company ceases operations in 8 years.

Price of stock = Sum of present value of dividends

The dividends here are increasing at a rate of 2% per year.

Year                             Dividend                                      Present Value            

1                                         $5.10                                 5.10/ (1 + 10%) = $4.64        

2                                        $5.20                                  5.20/ 1.1² =      $4.30

3                                        $5.30                                5.30 / 1.1³ =      $3.98

4                                        $5.41                                 5.41 /1.1⁴   =       $3.70

5                                       $5.52                                 5.52/1.1⁵ =        $3.43

6                                       $5.63                                   5.63/1.1⁶ =       $3.18

7                                       $5.74                                   5.74/1.1⁷ =        $2.94

8                                       $5.85                                   5.85/1.1⁸ =       $2.73

Total                                                                                                   $28.91

Under final regulations, a self-employed taxpayer may elect to apply a de minimis safe harbor to amounts he or she paid to acquire or produce tangible property to the extent such amounts are deducted by him or her for financial accounting purposes or in keeping his or her books and records. For taxable years beginning on or after January 1, 2016, the Internal Revenue Service increased the de minimis safe harbor threshold to what amount per invoice or item for self-employed taxpayers without applicable financial statements?

a. $500
b. $1,000
c. $2,000
d. $2,500

Answers

Answer:

d. $2,500

Explanation:

In the case of minimis safe harbor threshold limit amount per invoice or item for a taxpayers who are self employed without apply the finanical statement is the $2,500

Therefore as per the given statement, the correct option is D

And, the same is relevant

Also, the rest of the options are incorrect

Assume the following information about the market and RoseApple's stock.

RoseApple's beta = 1.50, the risk-free rate is 2%, the market risk premium is 8.0%. Using the SML, what is the expected return for RoseApple's stock?

Answers

Answer:

the expected return for RoseApple's stock is 14%

Explanation:

The computation of the expected rate of return is shown below:

As we know that

Expected return = Risk-free rate of return + Beta × market risk premium

= 2% + 1.50 × 8%

= 2% + 12%

= 14%

Hence, the expected return for RoseApple's stock is 14%

Therefore the above formula is applied to determine the expected return

The amount of money a person pays each month to secure insurance
coverage is the ____.
O A. premium
O B. collateral
O C. policy
O D. deductible

Answers

The amount of money a person pays each month to secure insurance coverage is the premium.

Answer= Premium
The answer to the question is A! I think. Hope this helped ฅ^•ﻌ•^ฅ

A property and casualty insurance company categorizes its policyholders into three groups: low risk, medium risk, or high risk. 25% of the policyholders are low risk and 30% are high risk. The high risk policyholders are three times as likely as medium risk policyholders to file an insurance claim and the medium risk policyholders are twice as likely as the low risk policyholders to file an insurance claim. Determine the proportion of the insurance claims filed by medium risk policyholders.

Answers

Answer:

The correct approach is "0.39".

Explanation:

The given values are:

Low risk percentage,

= 25%

i.e.,

= 0.25

High risk percentage,

= 30%

i.e.,

= 0.30

Now,

The medium risk percentage will be:

= [tex]1-(low+high)[/tex]

= [tex]1-(0.25+0.30)[/tex]

= [tex]1-0.55[/tex]

= [tex]0.45[/tex]

Should let probability of either an assertion by a low-risk policyholder be p,

Percentage of medium risk policyholder will be,

= 2p

Percentage of high risk policyholder will be,

= 3×2p

= 6p

By applying Bayes' theorem, we get

⇒ [tex]P(A | B) = \frac{P(A \$ B)}{P(B)}[/tex]

⇒               [tex]=\frac{(0.25p + 0.45\times 2p)}{(0.25p + 0.45\times 2p + 0.30\times 6p)}[/tex]

⇒               [tex]=\frac{1.15}{2.95}[/tex]

⇒               [tex]=0.39[/tex]

Answer:

the approach is "0.39"

Explanation:

A taxpayer can depreciate property under all of the following circumstances except:__________.A. He or she made a down payment to purchase rental property and assumed the previous owner's mortgageB. He or she bought a new van that he or she will use only for his or her courier business and he or she will be making payments on the van over the next 5 yearsC. He or she bears the burden of exhaustion of the capital investment in a leased propertyD. He or she leases property from someone to use in his or her trade or business or for the production of income

Answers

Answer:

The answer is "Option D"

Explanation:

In this question, throughout the situations which follow, a taxpayer can fall in value assets except that property is leased by another to be used in the trade or business of the individual or to generate income. In this, any shareholders of the professional are not puttering business. It is often a smart step, although from a tax viewpoint from a business point of view.

The free-rider problem; A. Arise from the ability to exclude an individual from the benefits of someone else's purchase B. Is a government failure resulting from consumption of private goods. C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase. D. Means that the market mechanism is the most efficlent way to produce public goods.

Answers

Answer: C. Reflects the inability to exclude an Individual from the benefits of someone else's purchase.

Explanation:

The Free-rider problem is a concept in economics that describes the fact that sometimes people benefit from goods and services that they wither did not pay for or underpaid for.

There has been a failure to exclude those individuals who are free-riding from the benefits of goods and services that other people are paying for. A simple example of the free-rider phenomenon is using Wikipedia. Most of those who use it do not contribute or pay for its upkeep in any way yet reap the benefits of its extensive information.

Gerald owns 465 shares of stock, with a basis of $2,831. The stock split 3 for 1. Gerald now owns ______ shares at ______ per share.

Answers

Answer:

Gerald now owns 1,395 shares at $2.03 per share.

Explanation:

Gerald originally owned 465 stocks, but after the stock split he will own 465 x 3 = 1,395 stocks. His basis though will not change, it will be the same $2,831. So the basis per share = $2,831 / 1,395 stocks = $2.029 ≈ $2.03 per stock. Stock splits do not alter the basis of a portfolio, it only increases the total number of stocks.

The amount of shares Gerald now owns is 1,395 shares and the price per share is $2.03.

When there is a stock split, the number of stock outstanding is increased by a constant number. When there is a stock split 3 for 1, for every 1 stock a shareholder owns, the shareholder now owns 3 stocks.

Number of shares owned = 465 x 3 = 1,395 shares

When there is a stock split, the value of the stock declines per share.

Value per share = $2831 / 1395 = $2.03

To learn more about stock splits, please check: https://brainly.com/question/25513890

A proposal that has significant support among policymakers regardless of political party is the need to modernize the nation's infrastructure, such as reinforcing thousands of bridges deemed structurally deficient and modernizing airports. Briefly explain why such policies might not be effective when the economy is experiencing an expansion than when it is in a recession.

Answers

Answer:

If the economy is experiencing an expansion, this policy would not be as effective because many of the economy's workers would already be employed in other activities. In other words, the economy would be close to, or at, full employment.

Another reason is that large public investments during an economic expansion tend to raise the interest raise, and crowd out private investment, because a big part of the supply of loanable funds would be taken up by the government. This would actually be detrimental for the economy because private investment would be less.

Finally, there is always the possibility of overheating the economy and causing it to enter an inflationary phase.

Dexter Company purchases $ 30,000 of equipment on January 1, 2020. The equipment is expected to last five years and be worth $ 5,000 at the end of that time. Prepare the journal entry to record one year's depreciation expense of $ 5,000 for the equipment as of December 31, 2020

Answers

Answer:

Dr Depreciation expense- Equipment $5,000

Cr Accumulated depreciation- Equipment $5,000

Explanation:

Preparation of the journal entry to record one year's depreciation expense

Based on the information given we were told that the Company purchases Equipment at the amount of $ 30,000 in which the equipment is expected to last for five years and the Equipment will be worth the amount of $5,000.

Based on this the Appropriate journal entry to record one year's depreciation expense of the amount of $ 5,000 for the equipment as of December 31, 2020 will be :

Dr Depreciation expense- Equipment $5,000

Cr Accumulated depreciation- Equipment $5,000

Calculated as:

Depreciation Expense-Equipment= ($30,000 – $5,000) / 5 years

Depreciation Expense-Equipment= $15,000/5 years

Depreciation Expense-Equipment= $5,000

Corporate spending on equipment, structures and intellectual property, decreased an annualized 2.2 percent after a 3.4 percent fall in the first quarter. Outlays for equipment dropped for the fourth time in the past five quarters. Spending on structures -- everything from factories to shops to oil rigs -- have increased in just one quarter since the end of 2014. Inventories and the trade gap are two of the most volatile components in GDP calculations. To get a better sense of demand in the U.S., economists look at final sales to domestic purchasers, or GDP excluding inventories and net exports. That measure increased 2.1 percent last quarter after a 1.2 percent gain. Also holding back economic growth in the second quarter was a decrease in residential investment, which fell at a 6.1 percent pace. That was the most since the third quarter of 2010 and marked the first decrease in two years. Government spending also shrank last quarter, declining 0.9 percent, the most in more than two years as outlays for the military fell. States and municipalities also cut back. The GDP report also showed price pressures remain limited. A measure of inflation, which is tied to consumer spending and strips out food and energy costs, climbed at a 1.7 percent annualized pace compared with 2.1 percent in the prior quarter. Fed policy makers, who left interest rates unchanged this week, said risks to the U.S. outlook have "diminished" and the labor market is getting tighter, suggesting conditions are turning more favorable for an increase in borrowing costs. U.S. Economy Grew Less-Than-Forecast 1.2% in Second QuarterSho ChandraIfU.S. households decide to work fewer hours and take more leisure time, which component of GDP is most likely to decrease as a result? A. net exports B. investment C. consumption D. government spending2. Based on the information in the article, does it appear that in early 2016 U.S. households in fact worked fewer hours and took more leisure time? What do the data suggest? According to the article (household consumption,hoisehold incomes, or unemployment) grew at an annualized rate of ( what) percent, a ( drop or jump ) compared to the recent past. This suggests that households worked (fewer) hours and took (less or more) leisure time

Answers

Answer:

1. c. consumption

If US household decide to work fewer hours and take more leisure time, the component of GDP that is most likely to decrease is consumption and the households' income will decrease. Consumption in economics means the purchase of goods and services demanded by individuals in an economy and its occurs according to household income level.

2. The sentence that is required to know the growth rate of household consumption is Household consumption. Household consumption accounts for about 70% of the economy and grew at 4.2% annualized rate which is the biggest jump since the end of 2014.

Household consumption grew at an annualized rate of 4.2%, a jump compared to the recent past. This suggest household worked more hours and took less leisure time.

What health care business decisions are based on financial statements? And what are some examples?

Answers

Answer:

Only certain decision-making offered here is determined by the financial proclamations of that same healthcare institution.

Explanation:

Whether we should start reversing this same healthcare services doorstep. If the amount needed is satisfactory again for the expansion of the company or even if the investments would have to be established. Accessibility of capital expenditures for the seamless functioning of the organization and the fulfillment of simple terms obligations.

A recessionary gap of $40 billion is present in the economy and MPC is 0.75. How could Congress close the gap using a change in taxes

Answers

Answer:

$13.33 million dollars

Explanation:

The congress would close the gap using a change in taxes by decreasing taxes in such a way that consumers are going to be more likely to spend money which is going to end up shifting the aggregate demand curve outwards or to the right.

40billion/(mpc/1-mpc)

= 40/0.75/0.25

= 40/3

= 13.33 billion dollars

The recessionary gap can be closed by Congress reducing taxes by a sum of $13.33 billion.

Amount to change taxes by

The amount to change taxes by can be found by the formula:

= Recessionary gap / Tax multiplier

Tax multiplier = MPC / ( 1 - MPC)

Taxes should be changed by:

= 40 billion ÷ (0.75 / ( 1 - 0.75))

= $13.33 billions

Taxes are decreased when a recessionary gap should be closed so Congress should reduced taxes by $13.33 billion.

Find out more on recessionary gaps at https://brainly.com/question/4347228.

If I had invested in Auto Zone in January, 1998, when the market quote was 30.25, 100 shares would have cost me ______________. If there was a commission fee back then of $75, the total cost of this investment would have been _______________.

Answers

Answer:

if I had invested in Auto Zone in January, 1998, when the market quote was 30.25, 100 shares would have cost me $3,025. If there was a commission fee back then of $75, the total cost of this investment would have been $3,100

Explanation:

In January , 1998. the quote per share was $30.25

The cost for 100 shares will be

=$30.25 x 100

=$3,025

Total cost including commision

=$3,025 + 75

=$3,100

If Jane Key invests $18,527.74 now and she will receive $40,000 at the end of 10 years, what annual rate of interest will she be earning on her investment?
A. 8.5%
B. 10%
C. 8%
D. 9%

Answers

Answer:

C. 8%

Explanation:

Future value factor:

= $18527.74 / $40000

= 0.4631935

At 8% for 10 years the future value factor is 0.4631935

Note: Proof of calculation is attached below as picture

Zhang Company reported Cost of goods sold of $855,000, beginning Inventory of $41,200 and ending Inventory of $48,300. The average Inventory amount is:

Answers

Answer:

the avergae inventory amount is $44,750

Explanation:

The computation of the average inventory would be

= (Opening inventory + beginning inventory) ÷ 2

= ($41,200 + $48,300) ÷ 2

= $89,500 ÷ 2

= $44,750

hence, the avergae inventory amount is $44,750

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The other values would be ignored

Raheem bought stock in a tech company that had just announced a dividend. He did not receive the dividend even though the record date had not yet passed when he purchased it. This is because he purchased the stock on or after the __________ date.

a. payment
b. ex-dividend
c. declaration
d. in-dividend

Answers

Answer:

b. ex-dividend

Explanation:

The dividend would only be paid to those investors who have purchased the stock prior to the ex-dividend date now if Raheem buy the stock on or after the ex-dividend rate so he would not be eligible for the dividend

Therefore as per the given situation, since he did not received the dividend this is because he purchased the stock on or after of ex-dividend date

Therefore the option b is correct

Jim buys a 10-year bond with par value of 10,000 and 8% semi-annual coupons. The redemption value of the bond at the end of 10 years is 10,500. Calculate the purchase price to yield 6% convertible quarterly.a. 11,700.b. 14,100.c. 14,600.d. 15,400.e. 17,700.

Answers

Answer:

a. 11,700

Explanation:

The purchase price of the Bond is its Present Value or PV. The fact the Bond is convertible quarterly does not affect the normal calculations of this Present Value.

Calculation of Bond Purchase Price

N = 10 × 2 = 20

FV = 10,500

PMT = ($10,000 × 8%) ÷ 2 = $400

I = 6 %

P/YR = 2

PV = ?

Using a financial calculator to input the values as shown above the PV would be $11,765

The purchase price is thus closest to $11,700

If you had purchased 10 shares of GoPro at the IPO (Initial Public Offering) on June 26, 2014 at 31.34, you would have spent _________________.
If you were more of a “gambler” than an “investor”, and you saw the market shoot up for GoPro and hit 86.97 just 3 months later and decided to SELL, you would have recognized a capital gain of __________________.
This would have resulted in a YIELD of ___________%.

Let’s say you hung on to your 10 shares of GoPro, believing that it would get even better. Today it is listed at 4.42. If you were to sell, you would recognize a loss of ________________.
This would result in a YIELD of _________%.
The average annual yield for 5.5 years would then be __________%.
Look up GoPro today. GoPro currently trading at _____________

Answers

Answer:

If you had purchased 10 shares of GoPro at the IPO (Initial Public Offering) on June 26, 2014 at 31.34, you would have spent $313.40.

If you were more of a “gambler” than an “investor”, and you saw the market shoot up for GoPro and hit 86.97 just 3 months later and decided to SELL, you would have recognized a capital gain of $869.70 - $313.40 = $556.30.

This would have resulted in a YIELD of ($556.30 / $313.40) x 100 = 177.5%.

Let’s say you hung on to your 10 shares of GoPro, believing that it would get even better. Today it is listed at 4.42. If you were to sell, you would recognize a loss of $44.20 - $313.40 = -$269.20.

This would result in a YIELD of (-$269.20 / $313.40) x 100 = -85.9%.

The average annual yield for 5.5 years would then be -12%.

Look up GoPro today. GoPro currently trading at $8.63 (January 7, 2021).

Explanation:

1 + 0.859 = (1 + r)⁵°⁵

⁵°⁵√1.859 = ⁵°⁵√(1 + r)⁵°⁵

1.12 = 1 + r

r = -0.12 (since the yield was negative, r must be negative)

rialto company collected $5,000 on account. what impact will this transaction have on the firm's current ratio

Answers

Answer:

There would be NO IMPACT

Explanation:

From the question, we are informed about, rialto company collected $5,000 on account. In this case there will be no impact of this transaction on the firm's current ratio. The collection on account can be regarded as exchange of asset transaction, any increase change in current asset account cash, then there will be decreases in Accounts Receivable , the ration of current asset to current liabilities gives the current ratio, there is no impact of transaction on the current ratio, since the transaction doesn't affect both the

current asset to current liabilities

Adama Company incurred the following costs.Indicate to which account Adama would debit each of the costs.1. Sales tax on factory machinery purchased$ 5,000 Select the account to be debitedEquipmentPrepaid InsuranceBuildingLandLand Improvements2. Painting of and lettering on truck immediately upon purchase700 Select the account to be debitedLandPrepaid InsuranceEquipmentBuildingLand Improvements3. Installation and testing of factory machinery2,000 Select the account to be debitedPrepaid InsuranceBuildingLandEquipmentLand Improvements4. Real estate broker’s commission on land purchased3,500 Select the account to be debitedLandLand ImprovementsPrepaid InsuranceBuildingEquipment5. Insurance premium paid for first year’s insurance on new truck880 Select the account to be debitedLandEquipmentPrepaid InsuranceLand ImprovementsBuilding6. Cost of landscaping on property purchased7,200 Select the account to be debitedEquipmentLand ImprovementsLandBuildingPrepaid Insurance7. Cost of paving parking lot for new building constructed17,900 Select the account to be debitedLand ImprovementsLandBuildingPrepaid InsuranceEquipment8. Cost of clearing, draining, and filling land13,300 Select the account to be debitedPrepaid InsuranceLandLand ImprovementsBuildingEquipment9. Architect’s fees on self-constructed building10,000

Answers

Answer:

1. Sales tax on factory machinery purchased  - $5,000

Account to be debited: Equipment

2. Painting of and lettering on truck immediately upon purchase - $700

Account to be debited: Equipment

3. Installation and testing of factory machinery - $2,000

Account to be debited: Equipment

4. Real estate broker’s commission on land purchased - $3,500

Account to be debited: Land

5. Insurance premium paid for first year’s insurance on new truck - $880

Account to be debited: Prepaid Insurance

6. Cost of landscaping on property purchased - $7,200

Account to be debited: Land Improvements

7. Cost of paving parking lot for new building constructed - $17,900

Account to be debited: Land Improvements

8.  Cost of clearing, draining, and filling land - $13,300

Account to be debited: Land

9. Architect’s fees on self-constructed building - $10,000

Account to be debited: Buildings

Abusive tax schemes have evolved from simple structuring of abusive domestic and foreign trust arrangements into sophisticated strategies that take advantage of the financial secrecy laws of some foreign jurisdictions and the availability of credit/debit cards issued from offshore financial institutions. Generally, these schemes are characterized by the use of all of the following flow-through entities except:
A. International Business Companies
B. Foreign Trusts
C. Qualified Intermediaries
D. Foreign Partnerships

Answers

Answer:

c. Qualified Intermediaries

Explanation:

The correct Option is Qualified Intermediaries. All the other choices A, B and D are characterized by Abusive tax schemes.

The basic purpose of an abusive tax scheme is to evade taxes and this is done by using the premise or modus operandi of structuring a multiple flow through entities. When this structure is created it enables the taxpayer to evade taxes. For instance the taxpayer can make use of trusts, LLCs, LLPs etc. The abusive tax schemes create a complicated transaction that is usually spun into a web of complex and multi-layered transactions. This web of complex and multi-layered transactions hides the real ownership and real nature of the taxable income. Abusive trust schemes are characterized by the use of all of the follow like domestic and foreign trusts, partnerships, nominees like International Business companies except Qualified Intermediaries.

If the nominal interest rate is 6 percent and the rate of inflation is 10 percent, then the real interest rate is:______

Answers

Answer:

The real interest rate = - 4 percent

Explanation:

Given:

Nominal interest rate = 6 percent

Rate of inflation = 10 percent

Find:

The real interest rate

Computation:

The real interest rate = Nominal interest rate - Rate of inflation

The real interest rate =  6 - 10

The real interest rate = - 4 percent

Marsh is deciding whether or not to open a lemonade stand. She expects to sell 20 cups of lemonade for $1 per cup. She already made a sign that cost her $10 and will have $15 worth of additional costs for cups and lemonade mix if she decides to open the stand.
If Marah decides to open the lemonade stand, how much profit will she earn?

Answers

Answer:

none

Explanation:

If Marsh expects to sell 20 cups of lemonade for $1 per cup then that is a total of $20. Unfortunately, Marsh has already spent $10 and is expecting to spend another $15 which would mean that his total costs would be $25 (10 + 15). This is a whole $5 more than what he is expecting to make from selling the 20 cups of lemonade. Therefore, if he does open the lemonade stand he will not earn any profit and will be at a $5 loss.

Answer:

$5 profit

Explanation:

$10 cost to make the sign is sunk cost and should be ignore when making the decision! She should open the lemonade stand.

The cost of a high-quality 250-horsepower compressor was $13,500 when recently purchased. What would a 608-horsepower compressor be expected to cost

Answers

Answer:

Cost of 608 hp compressor = $32,832

Explanation:

Given:

Cost of 250 hp compressor = $13,500

Find:

Cost of 608 hp compressor

Computation:

Cost of 608 hp compressor = Cost of 250 hp compressor x [608 / 250]

Cost of 608 hp compressor = $13,500 x [608 / 250]

Cost of 608 hp compressor = $32,832

Which one of the following is not a demographic base for segmentation? A. EducationB. OccupationC. ReligionD. Personality

Answers

Answer: Personality

Explanation:

Demographic segmentation is when a particular market is being grouped into segments based on a trait that's common to them such as income, age, gender, education, family status, cultural background, ethnicity, and occupation.

It should be noted that from the options given, option D which is personality is not part of the demographic base for segmentation.

When it comes to segmentation by demographic factors, it is not possible to use D. Personality

Demographic factors:

Are used to reference people of a particular group in the population.Include things like gender, age, race, and marital status.

A person's personality is unique and so cannot be used to reference a group of people so it is not considered to be a demographic factor like income status or educational level.

In conclusion, option D is correct.

Find out more about demographic segmentation at https://brainly.com/question/6049145.

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