Answer and Explanation:
Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.
Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders
Companies often do work on a cost-reimbursement basis. That is, Company B reimburses Company A for the cost of doing work for Company B. Suppose your company has a contract that calls for reimbursement of direct materials and direct labor, but not overhead. Following are costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead.
Answer:
The annual rate of return of the invesment will be -14,97%
Explanation:
The initial investment is 45.000 and after 5 years the value of the investment is only 20.000. Here we can see a destruction of value (20.000 < 45.000). In finance, the time takes an essential part in calculation, so through the interest rate we calculated how bad was the investment in annual terms. The formula is as follows: Final investment value=(Initial investment*(1+interest rate)^(total years)) in our case would be: 20.000=(45.000*(1+interest rate)^(5)) From this formula we got -14,97%
Answer:
The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $10,200.
Explanation:
In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is
, we have to make the following calculations.
First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100
Hence, First year preferred dividend = $9,100-$8,000 = $1,100
Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.
Answer:
(a). A worker at a Sony plant in Japan buys some Georgia peaches from an American farmer.
-<u> Increase in exports while no change in imports</u>.
(b). The Sony pension fund buys a bond from the U.S. Treasury.
- <u>Decrease in a net outflow of capital. Thus, it would be considered as a negative inflow/outflow</u>.
(c). An American investor buys a controlling share in a South Korean electronics firm.
- <u>Increase in Net Capital outflow for the U.S</u>.
Explanation:
Exports are described as the selling of domestic goods to a foreign country while Imports are characterized as the process of bringing in foreign goods to the domestic country. And Capital outflow is defined as the exact flow of funds from domestic to foreign and foreign to the domestic country.
In the first case, the purchase reflects a rise in exports as the domestic product is sold to the foreign country. In the second situation, the net outflow of the capital would decreases as it demonstrates a foreign purchase of a domestic asset. In the third example, the American investors' purchase of a South Korean firm demonstrates a domestic purchase of a foreign asset and thus, the net capital outflow would rise.
