At this price, we would say the demand is: O Elastic O Unitary O Inelastic Based on this, to increase revenue we should: O Raise Prices O Lower Prices Keep Prices Unchanged
Q: One-year Treasury bills currently earn 5.50 percent. You expect that one year from now, one-year…
A: Given, The current rate on one-year T-bill is 5.50% The one year T-bill will increase to 5.75%
Q: Jesse borrowed $30,000. The company plans to set up a sinking fund that will repay the loan at the…
A: Sinking fund is a fund created where regular payments are being made to repay the loan at the end of…
Q: You are earning an average of $46,500 and will retire in 10 years. If you put 20% of your gross…
A: Average earning = $46,500 Annual deposit (P) = 46500*0.20 = $9300 Interest rate (r) = 7% Period (n)…
Q: M-M theroy with perfect market suggests that divident payment: A.It dependes on the company's…
A:
Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's…
A: We need to use future value formula below to calculate total amount due after certain period. The…
Q: The market and Stock A have the following probability distributions: Probability Return on market…
A: Data given: Probability Return on Market Return on Stock A 0.2 18% 16% 0.3 12% 14%…
Q: Annuity Present Values What is the present value of an annuity of $7,300 per year, with the first…
A: Annual payment is made from 3 years from today to 30 years from today, i.e., for 28 years. Value of…
Q: WACC Example 5. SpillarCare borrows money at 5% interest after taxes and pays 10% for equity. The…
A: The WACC refers to the average after-tax cost of capital of the company. The WACC is the overall…
Q: How does interest rate risk differ from reinvestment rate risk? Why is the difference important?
A: Interest Rate Risk and Re investment Risk Interest rate risk results from the possibility that…
Q: Why is the salvage value $480,000 in the spread sheet? Is that supposed to be $240,000?
A: Given: Fixed asset will have a market value of $240,000 at the end of the project. Working Note#1…
Q: A Japanese company has a bond that sells for 107.218 percent of its ¥100,000 par value. The bond has…
A: As per the guidelines, the first questions are answered. Please post the remaining questions…
Q: Explain Three (3) approaches that a buyer could take to obtain reliable information about suppliers’…
A: The supplier is the one who provides goods and services to the other business. The entity purchases…
Q: These securities pay $0 coupons at the end of the
A: In order to find out portfolio yield, we first calculate the total cash flow of portfolio at each…
Q: Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par…
A: Bond Sam Bond Dave Par Value $ 1,000.00 Par Value $ 1,000.00 Time period(years) 3.00…
Q: Pat and Joe are divorced. The divorce settlement stipulated that Joe pay $525 a month for their…
A: A person may put aside a specified amount and also make periodic deposits to achieve their financial…
Q: Barry presently has 2.1 million dollars in an account paying a nominal rate of 7 percent convertible…
A: This is a question based on PV of a growing annuity. We have to find the withdrawal annuity that can…
Q: Amou it Financed Calculate the Monthly principal and Interest (Round dallars to necrest Cent)…
A: Given, Loan amount is 240,000 Interest rate is 7.50%
Q: promised to pay his son $300 semiannually for 9 years. Assume Pete can invest his money at 8% in an…
A: There is need of proper planning for the future and if done on the proper time it can have proper…
Q: Compute the value in 18 years of a $2,000 deposit earning 9 percent per year. (Do not round…
A: To calculate the future value we will use the below formula Future value = PV*(1+r)n Where PV -…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Given, The fixed amount of deposit is $41,094.73 The annual deposit in second option is $9,674.87
Q: What will be the total cost of investment in bonds? Do the…
A: Given: Particulars Pleasant innovation D right Tried Years 20 20 Face value $100 $100 $1000…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…
Q: What is the present value of $8,500 per year at a discount rate of 6.7 percent if the first payment…
A: Information Provided: Interest rate = 6.7% First payment period = Year 6 Last payment period = Year…
Q: Lydia purchased a $100,000 150-day T-bill when the prevailing yield on T-bills was 4.5%. She sold…
A: T-Bill: A Treasury Bill (T-Bill) is a short-term obligation of the United States government backed…
Q: Which of the following is an example of a way in which companies can create value by exploiting real…
A: Company has to take decisions while doing business but decisions must be based on logical and…
Q: The Elkmont Corporation needs to raise $67.9 million to finance its expansion into new markets. The…
A: Underwriting spread is a type of fee charged by the underwriters. It is the difference of the amount…
Q: How might capital rationing conflict with the goal of maximizing shareholders' wealth?
A: Capital rationing means the company has limited capital that must be invested in the most profitable…
Q: Scampini Technologies is expected to generate $125 million in free cash flow next year, and FCF is…
A: A company's free cash flow (FCF) is the money it has left over after paying for its operating…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Bonds Particulars Pleasant innovation D right Tried Years 20 20 Face value $…
Q: 2. In the fall of 2022, the Chase Corporation was involved in issuing new common stock at a market…
A: Cost of equity The cost incurred in obtaining equity finance is termed as the cost of equity. The…
Q: Problem: You are interested in a fixed-rate mortgage for $399,000 and need to choose the between…
A: Given: Mortgage amount=$399,000 Option 1: 15 Years mortgage. Interest rate = 3.75% Option 2: 30…
Q: Suppose your company needs $15 million to build a new assembly line. Your target debt-equity ratio…
A:
Q: The balance sheet for Quinn Corporation is shown here in market value terms. There are 12,000 shares…
A: Data given: In market value terms: Equity = $ 404,300 No. of shares outstanding = 12,000 Dividend…
Q: What if the beta is over 1?
A: Beta - It is a measure of its volatility of returns in comparison to the entire market. Beta is a…
Q: g to your book Financial Management for Small Businesses, 2nd OER Edition, Explain why the statement…
A: The cash flow statement are now days are important and necessary along with income statement and…
Q: Round your answers to the nearest cent. a. What is the value of a stock if: Do $1.20 k = 13% 9 = 9%…
A: Dividend growth model The model, which assumes that the growth of dividends remains the same…
Q: Determine how much is in each account on the basis of the indicated compounding after the specified…
A: Given, P is $5000 r is 3.1%
Q: Date DJIA S&P 500 January 6 11,998 1,278 January 13 12,022 1,289…
A: Date DJIA S&P 500 Jan-06 11,998.00 1,278.00 Jan-13 12,022.00…
Q: What is the average annualized forward premium/discount for the EUR if you use the 6M forward…
A: Information Provided: EUR/USD Spot Bid = 1.1618 EUR/USD Spot Ask = 1.1624 EURUSD 6M FWD Bid = 45.91…
Q: A 7.0 percent coupon bond with 25 years left to maturity can be called in four years. The call…
A: Given, The face value is $1000 Coupon rate is 7% Price of bond is $1066.
Q: Assume that you start with a $1000 dollar invested in each ETF at the end of 2003. Calculate the…
A: Amount invested in IWM is $1,000 Amount invested in EEM is $1,000 Value of EEM in 2019 is 3049.196…
Q: Calculate the net present value of the proposed equipment purchase. Bramble uses a 10% discount…
A: Net Present Value: It is a measure used in capital budgeting to determine the project's or…
Q: Please explain the risks the buyer of a loan participation is exposed to
A: There are many risks involved in loan and it is very risky to give loans because of default on loan…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Intrinsic value of each share with constant growth in dividend With Current dividend (D), Constant…
Q: An investor pays $275,000 for a mine that will produce level annual revenue for 18 years. What…
A: Sinking funds are funds created with the sole purpose of repaying debt at a future date. The…
Q: Discuss the benefits and risks of financial leverage both for a business.
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: For a 10-year $1000 par value 10% annual coupon bond that is selling at a discount and makes…
A: Information Provided: Period = 10 years Par value = $1000 Annual Coupon Rate = 10%
Q: Consider an amount of 25,000 in a fund today, October 25, 2022. Determine its value On Mar. 5, 2023…
A:
Q: Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $5.90 dividend every…
A: Here We have; Current Selling price = $80.55 Dividend amount = $5.90 Required Return…
Q: Find the future value of the following ordinary simple annuity Payment Interval 1 month Periodic…
A: Annuity is a series of equal receipts/payments made at a regular interval of time (monthly,…
Step by step
Solved in 2 steps with 1 images
- A market demand function is given by the equation QD = 180 – 2P. Find the value of consumer surplus if price is equal to 65. Illustrate your demand curve and the area of consumer surplus. Identify the area of consumer surplus, the price at which demand is zero, the level of demand if price was zero and the slope (show calculation if required).Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 35 For the questions assume that there is a $3 external COST. 1. Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the market is perfectly competitive and that "one allowance" lets you produce one unit of the good.) 2. What will they be worth if the quantity is capped at 500? 3. What if it is capped at 700?What is the law of demand? A) As the price of a good increases, its demand decreases B) As the price of a good increases, its demand increases C) Demand remains constant regardless of price changes D) Demand is directly proportional to supply Don't use chatgpt otherwise give 20 downvotes.
- Consider a product market with three consumers A, B and C with demand function PA = 6 – QA, PB = 6 – 2QB and PC = 12 – QC respectively, where P is the price in dollars and QA, QB and QC are the quantities demanded by Consumer A, B and C respectively. The marginal cost of the product is constant at $4. (i) If the product is public good, analyse the product and determine the optimal quantity of the product in the market.(ii) How will your answer be different if the product is a private good instead?Consider a product market with three consumers A, B and C with demand function PA = 6 – QA, PB = 6 – 2QB and PC = 12 – QC respectively, where P is the price in dollars and QA, QB and QC are the quantities demanded by Consumer A, B and C respectively. The marginal cost of the product is constant at $4. (i) If the product is public good, analyse the product and determine the optimal quantity of the product in the market.(ii) How will your answer be different if the product is a private good instead? (Hi there, may I requst for a detailed step by step explanation as i struggle with this topic. Thank you)Suppose we have a product with the following conditions: The consumer's maximum willingness to pay is 8 A firm's minimum willingness to accept is 1 The market price is 7 a. What is the consumer surplus? CS = b. What is the producer surplus? PS = c. What is the total surplus TS =
- Consider a market with the following supply and demand. (It may help to draw a graph for these questions.) P 5 6 7 8 9 10 11 12 13 14 QS 200 300 400 500 600 700 800 900 1000 1100 QD 800 750 700 650 600 550 500 450 400 350 If there is an external cost of $3, what is the efficient quantity? 500 (already answer) If there is an external benefit of $3, what is the efficient quantity? 700 (already answer) For the remaining questions assume that there is a $3 external COST. If the government wants to get the efficient quantity with a per/unit tax, how much should the tax be? 3 (already answer) Now imagine that they use tradable allowances. If they cap the quantity at 400 what would the value of these allowance be in the market? (Assume the…If Q equals the level of output, P is the selling price per unit, V is the variable cost per unit, and F is the fixed cost, then the break-even point in units is: a Q ÷ (P − V). b F ÷ (P − V). c V ÷ (P − V). d F ÷ [Q(P − V)].Translate the following monetary payoffs into utilities for a decision maker whose utility function is described by an exponential function with R = 250: –$200, –$100, $0, $100, $200, $300, $400, $500.
- When sales price increases and all other variables are held constant, the break-even point will A. remain unchanged _________________________. B. increase C. decrease D. produce a lower contribution marginWhen sales price decreases and all other variables are held constant, the break-even point will _______________________. A. remain unchanged B. increase C. decrease D. produce a higher contribution marginIf the ordering cost triples in an EOQ model, while the remaining values stay constant, how will the EOQ change? How sensitive is the EOQ to variations in demand or costs?