Answer:
8.36%
Explanation:
To find out the coupon rate, first we have to determine the PMT which is shown in the attachment below:
Given that,
Present value = $958
Future value = $1,000
Rate of interest = 8.9%
NPER = 14 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the yearly payment is $83.64
Now the coupon rate is
= $83.64 ÷ $1,000
= 8.36%
Answer:
D: declining marginal benefit
Explanation:
Declining benefits is a concept explained in the theory of diminishing marginal returns. As per this theory, additional deployment of an input while holding the other factors constant will lead to negative returns.
The term marginal refers to one more additional input or output. Marginal returns is the additional gain resulting from the sale or production of an extra unit. A firm enjoys positive marginal returns until production gets to its capacity level. Further input after this level results in decreasing gains.
This company opts not to purchase more inputs because it has reached its optimal level. Additional inputs will lead to reduced returns and, eventually, losses.
Answer:
option C is correct CPI in Kansas City is 125 and in Dallas is 150.
Explanation:
given data
Kansas City pays = $50,000
Dallas that pays = $60,000
solution
we know that CPI base year is always = 100
first we get here real salary value in Kansas City that is express as
Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1
put her value we get
Real Value = $50,000 ×
Real Value = $40000
and now we get here real salary value in Dallas that is express as
Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2
put her value we get
Real Value = $60,000 ×
Real Value = $40000
so now we can see that both value is same in both city with CPI Kansas City = 125 and CPI Dallas = 150
so here correct option is c. 125 in Kansas City and 150 in Dallas
Answer:
C)some inputs are fixed and some inputs are variable.
Explanation:
Usually, the fixed cost are usually fixed for a some levels of activity. However, as the level of activities increases, the fixed cost may also increase.
Variable cost on the other hand changes directly as the level of activities (say number of units produced) changes.
As such, in the short run, some inputs are fixed and some inputs are variable.
Option C is right.
Answer: a. 1.42
b) 2.74
c) 3.89
Explanation:
a) The Degree of Operating Leverage measures how much operating Income will change by if Sales change.
It is calculated with the formula,
= (Sales - Variable Costs) / (Sales - Variable Costs - fixed costs)
= (960,000 - 532,000) / (960,000 - 532,000 - 127,000)
= 1.42
b) The Degree of financial leverage measures how much Income will change due to a change in operating Income.
The formula is,
=Earnings before Interest and tax / Earnings before Interest and tax - Interest or just Earning before tax
= 301,000/110,000
= 2.74
c. Degree of Total Leverage is a measure of how sensitive the net income of a company is to a change in goods produced and/or sold.
It is calculated by multiplying DOL and DFL.
= 1.42 * 2.74
= 3.89
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