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AnnyKZ [126]
2 years ago
5

Before he went to​ college, Jon bought a car from his brother Tony. They agreed that Jon would pay Tony​ $10,000 when Jon gradua

ted from college. While Jon was at​ college, inflation was higher than expected. Thinking only about the car​ transaction, this unexpectedly high inflation was​ ________. A. good for both Jon and Tony B. good for Jon but bad for Tony C. bad for both Jon and Tony D. bad for Jon but good for Tony
Business
1 answer:
kumpel [21]2 years ago
3 0

Answer:

B. good for Jon but bad for Tony

Explanation:

Before he went to​ college, Jon bought a car from his brother Tony. They agreed that Jon would pay Tony​ $10,000 when Jon graduated from college. While Jon was at​ college, inflation was higher than expected. Thinking only about the car​ transaction, this unexpectedly high inflation was​<u> good for Jon but bad for Tony .</u>

Generally, inflation favors borrowers and hurts lenders. Technically, Jon is owing Tony $10,000.

With an inflation rate of 5% the value of that money depreciates to 95% of its real value because inflation rate depletes the real rate of money and is the biggest factor of lose of monetary value.

The money that Jon will eventually pay Tony will be lesser in value which is good for Jon and bad for Tony.

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Protec Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is
taurus [48]

Answer:

The correct answer is 8.23%.

Explanation:

According to the scenario, the computation can be done as:

WACC of debt = Respective costs of debt× Respective weight of debt

= (0.4 × 5)

= 2

WACC of preferred = Respective costs of preferred × Respective weight of preferred

= (0.15 × 7)

= 1.05

WACC of common equity = Respective costs of common equity × Respective weight of retained earning

= (0.45 × 11.5)

= 5.175

So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity

= 2 + 1.05 + 5.175

= 8.225 or 8.23 (approx.)

3 0
2 years ago
Adam owns a software development company. he and his team developed and licensed new software that could help many organizations
Galina-37 [17]

The correct answer is royalty. Royalty is considered to be a payment by which is made by one by which the franchisee or the licensee owns the asset in particular and that it is for the right of having to do an outgoing use of the asset.

3 0
2 years ago
Read 2 more answers
A common excuse for carrying out a morally questionable project is, "If I don’t do it somebody else will." This rationale may be
ladessa [460]

Answer:

It is not a legitimate excuse for engaging in unethical projects

Explanation:

Ensuring scientific integrity and avoiding professional misconduct is a collective role of Scientists and Engineers. Every professional, engineers inclusive, must ensure they stay committed and faithful to the oath of practice they have sworn to. Engineering is an important and learned profession. As members of this profession, engineers are expected to exhibit the highest standards of honesty and integrity.  Engineers must perform under a standard of professional behavior that requires adherence to the highest principles of ethical conduct.

Every engineer must be familiar with the code of ethics of the profession, abide by it, and report erring professionals for punitive measures to be taken rather than giving excuses for carrying out an unethical project.

The concept of responsible conduct emphasizes ethical decision making, professional responsibilities, and strict adherence to professional standards and values. Every engineer and professional must take into cognizance all the responsible conducts required by their professions

8 0
2 years ago
According to the video game industry’s statistics, the average gamer is 34 years old. Imagine the standard deviation for age is
Natalka [10]

Answer:

lower range 33.822 years

upper range 38.178 years

Explanation:

step 1:

48 -1 = 47

step 2:

(1 - 95%) / 2 = 0.025

step 3:

we look at the T distribution table for degrees of freedom (df) = 47, and α = 0.025; = 2.0117

step 4:

divide sample standard deviation by square root of sample size

7.5 years / √48 = 7.5 / 6.9282 = 1.0825

step 5:

multiply results from step 3 and 4

2.0117 x 1.0825 = 2.178

step 6:

for the lower range, subtract step 5 from sample mean

36 - 2.178 = 33.822

step 7: for the upper range, add step 5 with sample mean

36 + 2.178 = 38.178

6 0
2 years ago
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is Rs.500 a ride. Motorvill
larisa86 [58]

Answer:

The answer is below

Explanation:

i) The price elasticity of demand is given by the formula:

Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{40-80}{(40+80)/2} }{\frac{600-500}{(600+500)/2} }=\frac{-2/3}{2/11} =3.667 (ignore \ the\ sign)

Since the price elasticity of demand is greater than 1 hence it is elastic

ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.

iii)

Price \ elasticity\ of \ demand=\frac{\Delta Q}{\Delta P} =\frac{\frac{Q_2-Q_1}{(Q_2+Q_1)/2} }{\frac{P_2-P_1}{(P_2+P_1)/2} } \\\\Price \ elasticity\ of \ demand=\frac{\frac{120-80}{(120+80)/2} }{\frac{400-500}{(400+500)/2} }=\frac{0.4}{-2/9} =1.8 (ignore \ the\ sign)

Since the price elasticity of demand is greater than 1 hence it is elastic

4 0
2 years ago
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