<span>Setting a rent control price ceiling will cause the same impact as any other price ceiling that is below the market equilibrium price: it will create a shortage in the market. At the price equilibrium of $600, the number of renters would exactly meet the number of available 2 bedroom apartments. However, with this fixed price ceiling, the position along the demand curve will shift to one of higher demand, with no analogous change in the supply curve. Thus there will be more renters than can be supported, and renters will have to look for alternatives and substitutes.</span>
Answer: 76.3%
Explanation: Gross profit margin is calculated by dividing the gross profit (difference between revenue and cost of goods sold) by revenue (Net sales). It could be expressed as a percentage by multiplying by 100.
Gross profit margin = (gross profit ÷ net sales) * 100
Gross profit = $3,320
Net sales = $4,350
Gross profit margin = ($3,320÷$4,350) * 100
0.763 * 100 = 76.3%
Answer:
As the knock-in was reach, it will receive the original investment plus the coupon yield: 1,060
Explanation:
<u>At maturity</u>
Because the knock-in was achieved, the customer can pick to recieve stock or cash
when the contract was made, the stock price was 50 so 1,000 are equivalent to:
1,000 / 50 = 20 shares
we multiply this by the market price.
20 x 25 = 500
between 500 in stocks and 1,000 in cash it will prefer 1,000
Then, the interest will be:
1,000 x 6% = 60
Answer:
rate of return will be 8% and 8%
Explanation:
given data
municipal bond = 8%
corporate bond = 10 %
marginal tax = 20 %
solution
we know that here
Municipal bond no taxes are levied
hence after tax rate of return will be 8%
and
Corporate bond
after tax rate of return will be
rate of return = 10% × ( 1 - 0.20 )
rate of return = 8 %
