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Iteru [2.4K]
2 years ago
5

Assume a firm’s debtholders are promised payments in one year of $35 if the firm does well and $20 if the firm does poorly. Ther

e is a 50/50 chance of the firm doing well or poorly. If bondholders are willing to pay $25.50, what is the promised return to those bondholders?
Business
1 answer:
dexar [7]2 years ago
7 0

Answer:

$2 or 7.84%

Explanation:

we need to determine the expected value of the firm's payments:

  • $35 x 50% chance of doing well = $17.50
  • $20 x 50% chance of doing poorly = $10
  • total expected value = $27.50

Since investors are willing to pay $25.50 and the expected value in one year is $27.50, the promised return = $27.50 - $25.50 = $2 or 7.84% (= $2 / $25.50)

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Jessica weighs 125 lbs. She rode a bike at 17 mph for 25 minutes. What is the calorie cost of this activity?
Tomtit [17]

Answer: 178 calories

Explanation:

From the question, we are informed that Jessica weighs 125 lbs and that she rode a bike at 17 mph for 25 minutes. It should be noted that 17 mph is thesame as 0.057 cal/lb/min.

Therefore, the calorie cost of this activity will be:

= 0.057 x 125 = 7.125

We then multiply 7.125 by the number of minutes used. This will be:

= 7.125 x 25

= 178 calories

3 0
2 years ago
The balance of Stephanie's average balance checking account at the beginning of last cycle was $200, and the only transaction fo
Juliette [100K]
<span>Banks pay pay interest on a daily basis compounded 365 days a year. They would have paid interest on $200 for the first half of the month and $100 for the second half of the month. This averages out to $100. If this is a homework question, then the answer is $150. AVERAGE OF BOTH HALF YEARS = (200+100)/2 happens to = $150,</span>
5 0
2 years ago
1. How does Badger's approach to social responsibility help attract and retain employees?​
vredina [299]

Answer:

W.S. Badger became a certified benefit corporation. This is a rigorous test for companies to meet standards of transparency, accountability, and social and environmental performance. The highest-paid employee is capped five times that of the lowest paid. Company profits flow to employees via profit sharing. All employees participate in a bonus plan. Also, new parents can bring their babies to work. Finally, Badger donates pre-tax profits to non-profit organizations.

Explanation:

This company is a model of how businesses should look out for their employees that are the backbone.

5 0
2 years ago
Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per yea
emmainna [20.7K]

$45,000 per year is the economic cost of the time he contributes to the new business.

<h3><u>Explanation:</u></h3>

The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.

In the example given Jim  was earning d $70,000 per year and now he is paying himself  $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is  $70,000  and the implicit cost is $25,000.

8 0
2 years ago
For a particular competitive firm, the minimum value of average variable cost (AVC) is $12 and is reached when 200 units of outp
Makovka662 [10]

Answer:

The answer is: ALL THE OPTIONS ARE WRONG

Explanation:

A) In the short run, the firm will shut down if the price of its product is < $12.

B) In the long run, the firm will shut down if the price of its product is < $15.

C) The minimum value of variable cost equals the variable cost of producing 1 single unit, not the variable cost of producing 200 units.

D) If the firm's fixed costs are $500, it means that they decreased. According to the question the fixed costs were $690 (230 units x $3 per unit). So if the fixed costs decrease, then the average total cost should also decrease, not increase to $16.

4 0
2 years ago
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