Answer:
1.15%.
Explanation:
This can be calculated as follows:
Yield be on a 10-year TIPS = Rate of return on the 10 year T-bond - Average Inflation - Market Risk Premium (MRP)
Therefore, we have:
Yield be on a 10-year TIPS = 4.05% - 2.0% - 0.9% = 1.15%
Therefore, the yield on a 10-year TIPS should be 1.15%.
Answer:
d. identify and separate different types of buyers, and sell a product that cannot be resold
Explanation:
Segmenting the market into different groups is a way to charge varying prices. Each group has their own demand curve.
Answer:
Land = $295,000
Building = $1,375,000
Explanation:
The computation of cost of the land and new building is shown below:-
Land = Parcel of land + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials resulting from demolition were sold
= $280,000 + $20,000 + $5,000 - $10,000
= $305,000 - $10,000
= $295,000
Building = Architect's fees + Construction costs
= $35,000 + $1,340,000
= $1,375,000
We simply applied the above formulas
The amount that the company is worth at that exact time
Answer: a. $1,500
Explanation:
Working capital is calculated by deducting current liabilities from current assets. It is meant to show the operating liquidity of a company within a period.
Working capital = Current assets - Current liabilities
= 5,000 - 3,500
= $1,500