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2 years ago

If walter's costs are typical in the industry, we would expect that in the long run:

1 answer:

4 0

If Walter's costs are typical in the industry, we would expect that in the long run: there will be new firms that would enter the market for watches and the cost would fall, and every individual firm in the market would deliver less watches.

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Xena and xavier form the xx llc. xena contributes cash of $20,000, land (basis = $40,000; fair market value = $25,000), equipmen

brilliants [131]

Answer: $0 equipment, $20,000 land, $30,000 inventory, $90,000 partnership interest.

Explanation: The asset basis in the partnership between Xena and Xavier is the same same their basis. In the scenario above, Xena's basis is the same as Xena's partnership basis in asset.

Xena's asset basis include;

Cash = $20,000

Land basis = $40,000

Inventory basis = $30,000

Equipment basis = $0

Therefore Xena's basis in the partnership interest :

$(20,000 + 40,000 + 30,000 + 0) = $90,000

4 0

2 years ago

Which situation is an example of comparative advantage in an international market?

Yanka [14]

Answer:

Explanation:

3 0

2 years ago

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Huai takes out a $3,600 student loan at 6.6% to help him with 2 years of community college. After finishing the 2 years, he tran

Alja [10]

Answer:

a. The monthly payment on loan 1 is $76.03.

b. The monthly payment on loan 2 is $411.69.

Explanation:

a. Calculate the monthly payment on loan 1.

To determine the amount of periodic payments, the present value of annuity formula should be used:

$PV=P(\frac{1-(1+r)^{-n} }{r} )$

Where:

PV= present value

p=periodic payment

i=rate of interest

n=number of periods

We get the data for this exercise:

PV= 3,600 (loan).

p= unknown (we must find this value)

i= 6.6% or 0.066. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.066 / 12).

n= 4 years and 7 months, that is 55 months.

And we replace in the formula:

$3600=P(\frac{1-(1+\frac{0.066}{12})^{-55} }{\frac{0.066}{12} } )$

$3600=P(\frac{1-(1+0.055)^{-55} }{0.0055} )$

$3600=P(\frac{1-(0.7395812268)}{0.0055} )$

$3600=P(\frac{0.2604187732}{0.0055} )$

$3600=P(47.348867)$

Therefore:

$P=\frac{3600}{47.348867}$

$P=76.03$

The monthly payment on loan 1 is $76.03.

b. Calculate the monthly payment on loan 2.

We get the data for this exercise:

PV= 11,600 (loan 2).

p= unknown (we must find this value)

i= 7.3% or 0.073. However, because we need to know the monthly payment, the interest rate should be divided by 12 (0.073 / 12).

n= 2 years and 7 months, that is 31 months.

And we replace in the formula:

$11600=P(\frac{1-(1+\frac{0.073}{12})^{-31} }{\frac{0.073}{12} } )$

$11600=P(\frac{1-(1+0.006083)^{-31} }{0.006083} )$

$11600=P(\frac{1-(0.8286047296)}{0.006083} )$

$11600=P(\frac{0.1713952704}{0.006083} )$

$11600=P(28.1761088936)$

Therefore:

$P=\frac{11600}{28.1761088936}$

$P=411.69$

The monthly payment on loan 2 is $411.69.

8 0

2 years ago

Consider the effects of inflation in an economy composed of only two people: Charles, a bean farmer, and Dina, a rice farmer. Ch

Fantom [35]

Answer:

1) Suppose that in 2017 the price of beans was $2 and the price of rice was $8.

a) inflation rate = 100%
b) both are unaffected

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $8, inflation rate 100%

The inflation rate measures the change in the general price level of an economy during a certain period of time, in this case during a year from 2016 to 2017.

Since Gilberto produces beans and Juanita produces rice, and the price of both of their products increase equally (100%), then the inflation rate will not affect them. Their consumption levels also remain the same, no one decided to consume more of one product and less of the other.

2) Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.

a) 60%
b) Charles is better off while Dina is worse off

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $4.80, inflation rate 20%

average inflation rate = 60%

Since Charles produces beans, and the price of his products increased a lot, he will be better off, while Dina will be worse off since the price of rice increased much less.

3. Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.

a) 20%
b) Charles will be better off, Dina will be worse off

old price of beans = $1, new price $2, inflation rate 100%

old price of rice = $4, new price $1.60, inflation rate -60%

average inflation rate = 20%

4) What matters more to Charles and Dina?

The relative price of rice and beans is more important to Charles and Dina.

7 0

2 years ago

Luther industries has a dividend yield of 4.5% and a cost of equity capital of 10%. luther industries' dividends are expected to

Darina [25.2K]

8 0

2 years ago

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