Answer:
The total value created is $70
Explanation:
In this scenario, the total value created is the total monetary benefit of a consumer and a producer with respect to the sale of a product. It therefore, is the sum of the consumer surplus and producer surplus. It is calculated as follows:
Consumer surplus = consumer's willing price - market price = 130 - 100 = $30
Producer surplus = market price - producer's willing price = 100 - 60 = $40
Therefore, total value created = 40 + 30 = $70
Answer:
yield to maturity = 7.06%
Explanation:
yield to maturity (YTM) is calculated using the following formula:
YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]
- FV = $2,000
- PV = $1,902.14
- C = $2,000 x 6.48% x 1/2 = $64.80
- n = 12 x 2 = 24
YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually
Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.
Answer:
The correct answer is:
Ratio Scale
Explanation:
A ration scale of measurement is one that has equal units of measurement, and has an absolute value of zero. Measurements below the zero point on the scale is not possible. for example in the measurement of height in meters, the lowest measurement possible is 0 meter, a measurement of - 1 meter will make no mathematical sense. In this example, if a score of 60 is said to have twice as much attributes than a score of 30, it means that this attributes are measured from a reference zero point, because truly, 60 is twice as much as 30, from a zero point on a scale.
The other scales of measurements include;
nominal scale of measurement; which contains mainly categorical data and is mainly used in form of tags rather than showing magnitude or intervals. Example is grouping a group of adults into married, divorced or single.
Ordinal scale; this scale shows hierarchical series or ordered series, but does not show intervals between the elements. example is in classifying the positions of participants in a race as first, second or third etc. There is an ordering, as the first position is on top of the list, but it will now make sense to say the distance between the attribute of first to third position is the same as the distance between the attributes between third and fifth position, as there is no scale.
Interval scale; this scale of measurement does not have a limit zero value which represents the least possible point on a scale, but the intervals between different units on the scale can be compared logically. Example is the measurement of temperature using the Fahrenheit scale, where the temperature can go as low as - 20°F, below the zero point, and a distance of 3°F to 5°F can be said to be equal to a distance of 10°F to 12°F.
Answer:
= 9.80%
Explanation:
Plowback ratio fundamental analysis ratio that measures how much earnings are retained after dividends are paid out.
The expected growth rate equals the return on equity times the plowback ratio:
We can use the relationship g = ROE × b to find the plowback ratio.
= 14.00% × 0.70 = 9.80%
Answer:
$18,500
Explanation:
The first in first out (FIFO) inventory system assumes that It is the first purchased inventory that is the first to be sold.
Total inventory sold = 175 + 50 = 225 units
The first 50 units would be taken from the beginning inventory which costs $80. Total cost of 50 units of inventory would be $80 × 50 = $4,000
This leaves 75 units of the beginning inventory.
The 175 units sold would be taken from the remaining 75 units of the beginning inventory and the 270 units purchased
75 × $80 = $6,000
100 x $85 = $8500
Total cost of goods sold = $6,000 + $8500 + $4,000 = $18,500
I hope my answer helps you
