Answer:
income will decrease by $240,000 or 30%
Explanation:
current income:
revenue = $2,000,000
variable costs $800,00
fixed costs $400,000
operating income $800,000
income after change:
revenue = $1,920,000
variable costs $960,00
fixed costs $400,000
operating income $560,000
income will decrease by $240,000 or 30%
Answer:
c. 11.05%
Explanation:
The computation of firm's required return is shown below:-
First we need to find out the Market Risk Premium for computing the firm's required return.
Using CAPM, we calculate Market Risk Premium
Expected Future Market Rate of Return = Risk Free Rate on T-Bond + Beta of the Market × Market Risk Premium
10% = 6.5% + 1 × Market Risk Premium
Market Risk Premium = (10% - 6.5%) ÷ 1
= 3.5%
Required Rate of Return = Risk Free Rate + Beta of the Stock × Market Risk Premium
= 6.5% + (1 + 3.00%) × 3.5%
= 6.5% + 1.30 × 3.5%
= 11.05%
Answer:
Deposit= $94.19
Explanation:
Giving the following information:
You must make a payment of $1,432.02 in 10 years. To get the money for this payment, you will make five equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 12% with quarterly compounding.
First, we need to calculate the present value one year from today of $1,432.02.
We need to use the following formula:
PV= FV/(1+i)^n
n= 9*4= 36
i= 0.12/4= 0.03
PV= 1,432.02/ 1.03^36= 494.09
T<u>his is the monetary value we need to generate one year from today to achieve $1,432.02 ten years from now.</u>
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We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.12/5= 0.024
A= (494.09*0.024) / [(1.024^5)-1]
A= $94.19
One of the country, according to Immanuel Wallerstein that is currently many countries whose production is leased or owned by dominating countries but the workers in these countries do not share the same rights and privileges that United States workers do, that country would be A. Vietnam.
Answer:
Gross Domestic Product
Activities included and excluded:
1. The gross domestic product (GDP ) of the United States is defined as the monetary value of all finished goods and services in a given period of time. The important thing to note here is that GDP is the market value of all final goods and services produced within a country in a given period of time. This means that intermediate goods are not included.
2. Indication of Inclusion or Exclusion in 2018 GDP:
a) Calculo = excluded
b) Rotato = included
c) An accountant = excluded because of year, 2019
d) Fastline = included
e) Awake = included
Explanation:
1) The importation of the calculator into the United States does not form part of domestic production, and as such will be excluded.
2) Rotato's production on September 25, 2018 will be included, with an exclusive focus on whether the production of the set of tires increases GDP directly.
3) The accountant's work would have been included if it were done in 2018.
4) Fastlane's production will be included.
5) Awake's production will be included.
