Problem 7.02 (Yield to Maturity and Future Price) A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sels for $1,110. a. What is ais yleid to maturity (YTM)? Round your answer to tao decimal places: ω b. Assume that the yieid to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intemediate calcuatisnt. Aound your nnswer to the nearest cent.

Answers

Answer 1

a. The yield to maturity (YTM) is the annualized rate of return that an investor would earn if they hold the bond until maturity. To calculate the YTM, you need to find the discount rate that equates the present value of the bond's cash flows (coupon payments and the final principal payment) to its current market price.

In this case, the bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon. It is selling for $1,110. By using financial calculators or spreadsheet functions, you can find that the YTM is approximately 6.92% (rounded to two decimal places).

b. Assuming that the yield to maturity remains constant for the next three years, you can calculate the price of the bond three years from today. The bond will have 17 years remaining until maturity at that point. Using the YTM of 6.92% and the bond's cash flows (annual coupon payments of $80 and the final principal payment of $1,000), you can calculate the present value of these cash flows.

Discounting the cash flows at the YTM of 6.92% for 17 years, you will find that the price of the bond three years from today is approximately $1,090.61 (rounded to the nearest cent).

To learn more about discount rate click here brainly.com/question/13660799

#SPJ11


Related Questions

If the debt-equity ratio is 2.9, what is the weight of equity in the capital structure? Enter your answer as a percentage rounded off to two decimal points. Do not enter % in the answer box.

Answers

The debt-equity ratio is calculated by dividing the total debt by the total equity. In this case, if the debt-equity ratio is 2.9, it means that the total debt is 2.9 times the total equity.

To calculate the weight of equity in the capital structure, we need to find the proportion of equity relative to the total capital structure.The weight of equity can be calculated as:Weight of Equity = Equity / (Debt + Equity)Since the debt-equity ratio is given as 2.9, we can express the debt in terms of the equity.Let's assume the total equity as X. Then the total debt can be calculated as 2.9X.Weight of Equity = X / (2.9X + X) = X / 3.9XSimplifying further:B eight of Equity = 1 / 3.9To express it as a percentage, we multiply by 100:Weight of Equity = 100  3.9Using a calculator or rounding to two decimal places, we find that the weight of equity in the capital structure is approximately 25.64%.

learn more about calculated here :

https://brainly.com/question/30781060

#SPJ11

A marketing director would like to estimate the effect of advertising expenditures on the quantity of his product sold controlling for the effects of price and average household income in the area. The dependent variable in this regression should be: A) price B) average household income C) quantity sold D) advertising expenditure

Answers

The dependent variable in this regression should be C) quantity sold.

The marketing director wants to estimate the effect of advertising expenditures on the quantity of the product sold while controlling for the effects of price and average household income. The dependent variable represents the outcome or response variable that the researcher is interested in explaining or predicting based on the independent variables.

In this case, the marketing director wants to understand how advertising expenditures impact the quantity of the product sold, taking into account the influence of price and average household income. Therefore, the quantity sold is the variable of interest and should be the dependent variable in the regression analysis.

Learn more about regression from:

https://brainly.com/question/25987747

#SPJ11

The dependent variable in this regression should be quantity sold. Option C

How to determine the dependent variable

The marketing director needs to appraise the impact of promoting uses on the amount of the item sold, which suggests the amount sold is the variable of intrigued.

The executive needs to control for the impacts of price and normal family wage within the region, which proposes that cost and average household pay would be included as autonomous factors within the relapse show.

The dependent variable speaks to the result or reaction variable that's being anticipated or clarified by the free factors, and in this case, it is the quantity sold.

Learn more about regression at: https://brainly.com/question/26755306

#SPJ4

In the course notes, we've looked at a hedonic model that models the price of a home as a function of its attributes. Suppose we think that square footage (sqft) should always be included in a hedonic model, resulting in the following model price =α+βsqft+…+ϵ What other additional independent variables do you think should be included in the hedonic regression? In other words, what variables would affect how much you are willing to pay for a home other than square footage? Remember that we've discussed many special types of variables including dummy variables, logger variables, quadratics, and interaction terms. Be sure to include some justification for why those variables should be included.

Answers

The hedonic model is a model that explains the price of a property as a function of the attributes of the property.

In the hedonic model price=α+βsqft+…+ϵ, sqft is included. However, it is not sufficient to model the price of a home by considering only the square footage. Other variables such as the location of the home, the age of the home, and the number of bedrooms in the home are also important factors in determining the price of a home.

Location: The location of the home is an important factor in determining the price of a home. Houses in popular locations such as city centers are likely to have higher prices than houses located in rural areas. So, a dummy variable can be used to model the effect of the location of the house on the price.

This dummy variable would take the value of 1 if the house is located in a popular location and 0 otherwise. Age: The age of the home can also affect its price. Older homes are likely to have lower prices than newer homes. A logarithmic variable can be used to model the effect of the age of the house on the price. This variable would take the logarithm of the age of the house. Bedrooms: The number of bedrooms in the house can also affect the price of the house.

To know more about hedonic visit:

https://brainly.com/question/31823307

#SPJ11

An insurance company processes 20,000 claims/day. The average time to process a claim in
this company used to be 10 days. Through operational innovation, the company reduced the average process
time to 1 day. Assuming that the company incurs a cost of $25 per day on each claim that is "in-process",
how much money did they save (per day) on average because of the reduced claims processing time? (Hint:
Every day the company incurs a cost of $25 per claim "in-process".)

Answers

The given insurance company has reduced the average process time from 10 days to 1 day through operational innovation. The average process time before innovation = 10 daysAverage process time after innovation = 1 dayThe number of claims processed per day by the insurance company = 20,000

Now, we need to calculate the daily savings because of the reduced claims processing time. The formula to calculate the daily savings is given below;Daily Savings = Number of claims × cost per day on each claim that is "in-process" × (Process time before innovation - Process time after innovation)Number of claims processed per day = 20,000Cost per day on each claim that is "in-process" = $25

Process time before innovation = 10 daysProcess time after innovation = 1 daySubstituting the values in the above formula;Daily Savings = 20,000 × 25 × (10 - 1)= 20,000 × 25 × 9= $4,500,000Therefore, the daily savings (per day) on average because of the reduced claims processing time are $4,500,000.

To know more about company visit:

https://brainly.com/question/30532251

#SPJ11

Consumers, firms and the government interact in the saving market.
(a) Describe (with the appropriate equations) the demand and supply of saving coming from con-
sumers, firms and government. What is the equilibrium in this market?
(b) Suppose the government announces a tax cut to consumers entirely financed by a cut in govern-
ment spending. What happens to consumers’ spending and saving? What happens to government
saving? Focusing only of the loanable funds market: What happens to the equilibrium interest
rate? Describes with words, equations and graphs, be as precise as you can.
(c) Now consider equilibrium in both saving and money market [ISLM framework]. Describe graph-
ically the effect on output and interest rate of the policy described above. Be as precise as you
can.
(d) Suppose at the same time as the tax cut, monetary policy becomes expansionary (so the central
bank expands the monetary base). What would be the equilibrium interest rate and output? How
does it change compared to what you found in part (c)?

Answers

A. it can be represented as:Sd(r) = Ss(r)

B. the supply curve (Ss) would shift to the left, intersecting with the demand curve (Sd) at a higher interest rate, indicating the new equilibrium.

C. The impact on the interest rate would depend on the magnitude of the monetary policy and its interaction with the fiscal policy.

D.  If monetary policy becomes expansionary at the same time as the tax cut, it would increase the money supply and lower interest rates.

(a) In the saving market, the demand for saving comes from consumers, firms, and the government, while the supply of saving also comes from these three sectors. The demand for saving is determined by the interest rate (r), which represents the return on saving. The higher the interest rate, the lower the quantity of saving demanded, and vice versa. Mathematically, the demand for saving can be represented as:

Sd = Sd(r)

On the other hand, the supply of saving is determined by the willingness of consumers, firms, and the government to save. The higher the interest rate, the higher the return on saving, leading to an increase in the quantity of saving supplied. Mathematically, the supply of saving can be represented as:

Ss = Ss(r)

The equilibrium in the saving market occurs when the quantity of saving demanded (Sd) equals the quantity of saving supplied (Ss). Mathematically, it can be represented as:

Sd(r) = Ss(r)

(b) If the government announces a tax cut to consumers entirely financed by a cut in government spending, it would lead to an increase in consumers' disposable income. This, in turn, would increase consumers' spending and decrease their saving. On the other hand, government saving would decrease due to the cut in government spending.

In the loanable funds market, the decrease in saving by consumers would reduce the supply of saving, shifting the supply curve to the left. This would lead to an increase in the equilibrium interest rate.

Graphically, the supply curve (Ss) would shift to the left, intersecting with the demand curve (Sd) at a higher interest rate, indicating the new equilibrium.

(c) In the ISLM framework, the effect of the policy described above would depend on the relative magnitudes of the fiscal policy (tax cut and government spending cut) and monetary policy (expansionary monetary policy by the central bank). Without further information on the specific magnitudes, it is challenging to determine the precise effect on output and interest rate.

However, in general, a tax cut would stimulate consumption and aggregate demand, leading to an increase in output. A cut in government spending would reduce government saving and potentially crowd out private investment, affecting output. The impact on the interest rate would depend on the magnitude of the monetary policy and its interaction with the fiscal policy.

(d) If monetary policy becomes expansionary at the same time as the tax cut, it would increase the money supply and lower interest rates. Lower interest rates would encourage borrowing and investment, stimulating aggregate demand and output. The equilibrium interest rate would be lower compared to the scenario in part (c), and output would likely be higher due to the combined effects of expansionary fiscal and monetary policies.

Learn more about  Demand   from

https://brainly.com/question/1552746

#SPJ11

The best way to show counts of the receivables in column C in the pivots is to: • Add another instance of Amount to the pivot tables with the appropriate field value settings and formatting • Determine the counts with the count() function in the receivables sheet and reference them in the pivots sheet • Counts cannot be added reliably because they would change with different data for Customer, CreditDate, and Amount • Counts would be undesirable because they would replace values showing as Sum of Amount in the pivot tables

Answers

To show counts of receivables in column C in the pivot table, the best way is to add another instance of Amount to the pivot tables with the appropriate field value settings and formatting.

This enables a pivot table user to choose between viewing the actual values of the Amount column or the counts of the C column. Here are more than 100 words about this: As the pivot table’s data set gets larger and more complex, it might become necessary to count, rather than sum, a particular field.

While it is easy to calculate sums, especially when dealing with numbers, finding the count of data elements in a pivot table may require a bit more effort. Fortunately, Excel pivot tables are flexible and versatile, allowing the calculation of counts from data sets for which a sum is inappropriate.

To show counts of receivables in column C in the pivot table, the best way is to add another instance of Amount to the pivot tables with the appropriate field value settings and formatting. This enables a pivot table user to choose between viewing the actual values of the Amount column or the counts of the C column.

To know more about column visit:

https://brainly.com/question/29194379

#SPJ11

with the use of examples, explain why Boserup suggests that population growth might be a good thing.

Answers

Answer:

Boserup, an economist and agricultural scientist, proposed the theory that population growth can be a positive factor for economic development and agricultural productivity. She argued that as the population increases, it creates pressure on the available resources, which in turn stimulates innovation and technological advancements to overcome the challenges posed by the growing population.

Here are a few examples to illustrate Boserup's perspective:

1. Technological Innovation: As the population grows, there is a greater demand for food, shelter, and other essential resources. This demand encourages farmers and agricultural scientists to develop new and more efficient farming techniques, such as mechanization, irrigation systems, and crop improvement methods. These innovations help increase agricultural productivity and meet the rising food demand.

2. Infrastructure Development: A growing population necessitates the development of infrastructure such as transportation networks, irrigation systems, and storage facilities. The need to accommodate a larger population motivates governments and private entities to invest in infrastructure projects. Improved infrastructure enhances agricultural productivity by facilitating the transportation of goods, enabling farmers to access markets, and providing better irrigation systems.

3. Specialization and Division of Labor: With a larger population, there is a greater potential for specialization and division of labor. As more people enter the workforce, different skills and expertise emerge, leading to more diverse and specialized economic activities. This specialization can lead to increased efficiency and productivity in various sectors, including agriculture, as individuals focus on specific tasks and develop expertise in their respective fields.

4. Market Expansion: A larger population means a larger consumer base. This expanded market provides opportunities for businesses and farmers to increase their production and sales. Increased demand for goods and services incentivizes entrepreneurs to invest in businesses, leading to economic growth and development.

5. Knowledge and Knowledge Sharing: With a growing population, there is a larger pool of knowledge and expertise available. People bring diverse ideas, experiences, and knowledge to society, fostering creativity and innovation. This knowledge can be shared among individuals and communities, leading to the spread of best practices, improved farming techniques, and the dissemination of valuable information for agricultural development.

While Boserup's theory suggests that population growth can have positive impacts on economic development and agricultural productivity, it is important to note that the realization of these benefits depends on various factors such as access to resources, government policies, social and economic institutions, and environmental sustainability.

Learn more about Boserup's theory on the given link:

https://brainly.com/question/11292988

#SPJ11

What does a plaintiff have to prove to be successful in a negligence action against a public accountant (PA)? Multiple Choice There must be proof damage resulted There must be a legal duty of care, th
"

Answers

To be successful in a negligence action against a public accountant, a plaintiff must prove a legal duty of care, breach of that duty, causation, and resulting damages.

To be successful in a negligence action against a public accountant (PA), a plaintiff generally needs to prove the following elements:

Duty of Care: The plaintiff must establish that the PA owed a legal duty of care to them. This means that the PA had a professional obligation to act with reasonable skill, care, and diligence in providing accounting services.

Breach of Duty: The plaintiff must demonstrate that the PA breached the duty of care. This requires showing that the PA failed to meet the expected standard of care in their professional services, such as making errors or omissions in financial statements or providing incorrect advice.

Causation: The plaintiff must establish a causal connection between the PA's breach of duty and the harm suffered. They need to demonstrate that the PA's negligence directly caused or contributed to the damages or losses experienced.

Damages: The plaintiff must prove that they suffered actual damages as a result of the PA's negligence. This could include financial losses, harm to reputation, or other measurable harms.

Overall, to be successful in a negligence action against a public accountant, the plaintiff must demonstrate the existence of a duty of care, a breach of that duty, a causal link between the breach and the damages, and actual harm or damages resulting from the PA's negligence.

Learn more about negligence from the given link: https://brainly.com/question/32769351

#SPJ11

Indicate whether the following issue concerns microeconomics or macroeconomics: The impact of natural disaster on a nation's Gross Domestic Product (GDP)

Answers

The issue of the impact of natural disaster on a nation's Gross Domestic Product (GDP) concerns macroeconomics.

What is Macroeconomics?Macroeconomics is the branch of economics that examines the behavior and performance of an economy as a whole. It focuses on the aggregate changes in the economy, such as national income, inflation, unemployment, economic growth, and monetary and fiscal policy. In other words, macroeconomics is concerned with the broader aspects of the economy, such as government policies and overall economic performance.

On the other hand, microeconomics deals with the individual economic agents' behavior, such as firms and households.In conclusion, the impact of natural disasters on a country's GDP, which is a macroeconomic indicator, is best analyzed using macroeconomics.

to know more about GDP visit
https://brainly.com/question/33189241
#SPJ11

EVALUATION PLAN FOR FOOT LOCKER iNC. PROVIDE THE DEFINITION FOR
METRICS AND CONTINGENCY PANS.

Answers

Metrics refer to the quantitative measures used to assess and evaluate the performance or progress of a specific aspect of a business.

They provide objective data and key indicators that help in measuring the success or effectiveness of strategies, initiatives, or processes. Metrics are typically defined based on specific goals or objectives and can include various types of measurements such as financial metrics, operational metrics, customer satisfaction metrics, and employee performance metrics. They play a crucial role in tracking performance, identifying areas of improvement, and making informed decisions to drive business success. Contingency plans, on the other hand, are predefined strategies or actions that are put in place to address potential risks, uncertainties, or unexpected events that may arise during the implementation of a project or business operation. These plans outline alternative courses of action that can be taken to mitigate the impact of disruptions or deviations from the original plan. Contingency plans help organizations prepare for and respond to unforeseen circumstances, ensuring business continuity and minimizing the negative effects of unexpected events.

Learn more about contingency plans here:

https://brainly.com/question/939242

#SPJ11

write about the financial benefits of tourism to the city of Venice, Italy
you can write general information about the financial benefits of the tourism in any country, and then search the internet for more information about tourism in Venice

Answers

The financial benefits of tourism must be balanced with the sustainable management of the city's resources, preservation of cultural integrity, and minimizing the negative impacts of mass tourism on the local community

Tourism plays a significant role in generating financial benefits for cities around the world, including Venice, Italy. Here are some general financial benefits associated with tourism:

Revenue Generation: Tourism brings in substantial revenue through various channels such as accommodation, dining, transportation, attractions, and souvenir sales. Visitors to Venice contribute to the local economy by spending money on hotels, restaurants, shopping, and cultural experiences, resulting in increased business revenue and tax income.

Job Creation: The tourism industry creates employment opportunities across multiple sectors. As the number of tourists visiting Venice increases, there is a higher demand for hotel staff, tour guides, restaurant workers, retail associates, transportation providers, and other service-related positions. This leads to job growth and reduces unemployment rates in the city.

Small Business Development: Tourism supports the growth of small businesses in Venice. Entrepreneurs can establish new enterprises, such as boutique hotels, local eateries, artisanal shops, and tour agencies, catering to the unique needs and preferences of tourists. This fosters a vibrant entrepreneurial ecosystem and encourages economic diversification.

Infrastructure Investment: The revenue generated from tourism can be reinvested into improving the city's infrastructure and public services. The funds can be utilized for the maintenance and restoration of historical sites, development of transportation systems, enhancement of public spaces, and environmental conservation efforts. These investments not only benefit tourists but also improve the overall quality of life for residents.

Cultural Preservation: Tourism often promotes the preservation of cultural heritage and traditions. In Venice, the influx of tourists provides financial support for the maintenance and restoration of historical landmarks, museums, and art galleries. This helps preserve Venice's unique cultural identity, attracting more visitors in the process.

Specifically in the case of Venice, the city heavily relies on tourism for its economic well-being. The financial benefits of tourism in Venice are substantial due to its status as a UNESCO World Heritage site and its iconic attractions such as St. Mark's Square, the Grand Canal, and the historic Venetian architecture. Venice attracts millions of tourists each year, contributing significantly to its economy.

According to research, tourism accounts for a significant portion of Venice's GDP, and the revenue generated from tourism supports a wide range of businesses and employment opportunities. The city invests in maintaining its cultural heritage, managing the unique ecological challenges posed by its location, and ensuring a memorable experience for visitors.

It's important to note that the financial benefits of tourism must be balanced with the sustainable management of the city's resources, preservation of cultural integrity, and minimizing the negative impacts of mass tourism on the local community. Sustainable tourism practices and careful planning are crucial to ensure the long-term economic and environmental sustainability of Venice as a tourism destination.

learn more about financial  here

https://brainly.com/question/28319639

#SPJ11

How has Cutco (Accessory company) used Quality to differentiate its products? Explain your answer.
In what ways does Cutco add value to its products through the "Forever Guarantee"?
Do you think the direct selling channel helps position Cutco's high quality knives in the marketplace? Explain your answer in detail.
As a college student, do you agree with Cutco's philosophy of using and training young people to sell Cutco products?

Answers

Cutco's business model can provide students with a valuable learning experience and an opportunity to earn money while they are pursuing their education.

Cutco (Accessory company) has used Quality to differentiate its products in the following ways:

Quality Control: Cutco’s knives are manufactured in the United States, where they undergo rigorous testing. Cutco tests their products at every stage of production to ensure that they are producing the highest quality knives. Cutco's quality assurance process includes testing each blade to ensure it meets the company’s standards before it is shipped out to customers.

Quality Materials: Cutco uses high-quality materials to make its products. The company's knives are made from high-carbon stainless steel, which is known for its strength, durability, and rust resistance. Cutco uses only the finest materials to ensure that its knives last a lifetime.

Customization: Cutco offers customization options, such as adding personalized engravings to its products. This allows customers to create a product that is unique to them. By offering this service, Cutco is able to differentiate itself from its competitors and add value to its products.

The "Forever Guarantee" is one way that Cutco adds value to its products. The Forever Guarantee ensures that Cutco’s knives will be repaired or replaced if they ever break or become damaged, regardless of how old they are. This guarantee adds value to Cutco's products by providing customers with peace of mind that their knives will last a lifetime and are worth the investment. The direct selling channel does help position Cutco's high quality knives in the marketplace. Cutco's sales representatives are trained to provide customers with a high level of service and to demonstrate the quality of the knives in person.

Additionally, the direct selling channel allows Cutco to offer its products at a lower price than if they were sold through traditional retail channels, which helps the company remain competitive. The company provides its sales representatives with comprehensive training and support, which can help them develop valuable skills such as communication, salesmanship, and entrepreneurship. Additionally, Cutco's flexible schedule allows students to work around their class schedules and earn money while they are in school.

To learn more about business model, visit:

https://brainly.com/question/30550308

#SPJ11

How does globalization benefit U.S. society? How does it hurt us? What can be done to balance the benefits and the liabilities?

Answers

Globalization benefits U.S. society through economic growth, expanded consumer choices, innovation, and job creation. However, it also poses challenges such as job displacement, income inequality, and environmental impact.

To balance the benefits and liabilities, investments in education and skills training, social safety nets, fair trade practices, environmental sustainability, and inclusive social dialogue are necessary. These measures aim to support workers, address income disparities, promote sustainable practices, and ensure a level playing field. By pursuing a comprehensive approach, the United States can harness the advantages of globalization while mitigating its negative impacts, fostering a more inclusive and sustainable society.

learn more about economic growth here:

https://brainly.com/question/15117443

#SPJ11

Consider the following aternatives: 1. $100 received in one year Ii. $300 received in 5 years ii. $500 received in 10 years a. Rank the altematives from most valuable to lonst valuable if the interest rate is 25% per year. b. What is your ranking if the interest rate is only 15% per year? c. What is your ranking it the interest rate is 35% per year? a. Rank the alternatives from most valuable to least valuable it the interust rate is 25% per year, Choose the coirnct antwer below. A. Option 1> Option iili > Option it B. Option ii > Option iii > Opeion i c. Option if > Option ii > Option i. D. Option iili > Option i > Option it E. Option e > Option i> Option iii F. Option I > Option ii > Option iii

Answers

a) The options can be ranked in the following order from the most valuable to the least valuable at an interest rate of 25% per annum:

$100 received in one year $100 x (1+ 25%) =$1252.

$300 received in 5 years $300 x (1+ 25%)^5 =$1221.553.

$500 received in 10 years $500 x (1+ 25%)^10 =$9646.85

Therefore, the ranking is Option 1 > Option II > Option III.

b) If the interest rate is only 15% per annum, the options can be ranked in the following order from the most valuable to the least valuable:

$100 received in one year $100 x (1+ 15%) =$1152.

$300 received in 5 years $300 x (1+ 15%)^5 =$844.213.

$500 received in 10 years $500 x (1+ 15%)^10 =$2829.64

Therefore, the ranking is Option I > Option II > Option III.

c) If the interest rate is 35% per annum, the options can be ranked in the following order from the most valuable to the least valuable:

$100 received in one year $100 x (1+ 35%) =$1352.

$300 received in 5 years $300 x (1+ 35%)^5 =$3927.693.

$500 received in 10 years $500 x (1+ 35%)^10 =$69960.85

Therefore, the ranking is Option III > Option II > Option I.

Learn more about ranked from the given link

https://brainly.com/question/22586056

#SPJ11

Larkspur Corporation purchased for $280,000 a 30x interest in Murphy, Inc. This irivestment enables Larkspur to exert vignificant influence over Murphy, During the vear. Murphy earned net income of $171.000 and paid dividends of $59,000 Prephre Larkspur's journal entries related to this imestment. (Credit account titles are outomatically indented when amasnt is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amauntr. I Account Titles and Explanation (To record the purchase.) (To record the net income.) (To record the dividend.) eTextbook and Media List of Accounts

Answers

Based on the information provided, here are the journal entries for Larkspur Corporation related to its investment in Murphy, Inc.:

To record the purchase:

Investment in Murphy, Inc. 280,000

Cash 280,000

To record the share of net income:

Investment in Murphy, Inc. 51,300

Equity in Net Income of Murphy, Inc. 51,300

To record the receipt of dividends:

Cash 17,700

Investment in Murphy, Inc. 17,700

Note: The calculation for the share of net income is determined by multiplying the net income of Murphy, Inc. by the ownership percentage (30%). Similarly, the dividend received is calculated by multiplying the dividends paid by the ownership percentage.

Please ensure to consult with an accounting professional or refer to your textbook for accurate and specific guidance.

To know more about   Larkspur Corporation
Visit https://brainly.com/question/33182562
#SPJ11

The solution to the given problem is as follows:1. To record the purchase of 30% interest in Murphy, Inc by Larkspur Corporation for $280,000, the following journal entry will be made:

Account Titles and Explanation Debit Credit Investment in Murphy, Inc. $280,000Cash $280,0002. To record Murphy Inc's net income of $171,000, the following journal entry will be made: Account Titles and Explanation Debit Credit Investment in Murphy, Inc. ($171,000 x 30%) $51,300Share of net income $51,3003. To record the dividend of $59,000 paid by Murphy, the following journal entry will be made: Account Titles and Explanation Debit Credit Cash ($59,000 x 30%) $17,700Investment in Murphy, Inc. $17,700Thus, the journal entries related to Larkspur Corporation's investment in Murphy, Inc are as follows:

Account Titles and Explanation Debit Credit Investment in Murphy, Inc. $280,000Cash $280,000(To record the purchase.)Account Titles and Explanation Debit Credit Investment in Murphy, Inc. ($171,000 x 30%) $51,300Share of net income $51,300(To record the net income.)Account Titles and Explanation Debit Credit Cash ($59,000 x 30%) $17,700Investment in Murphy, Inc. $17,700(To record the dividend.)

To know more about Larkspur Corporation
Visit https://brainly.com/question/33182562
#SPJ11

GG Corporation used the following data to evaluate its current operating system. The company sells items for €25 each and used a budgeted selling price of €25 per unit. What is the static-budget variance of variable costs? a. €204000(U) b. €204000 (F) c. €36000(U) d. €36000 (F)

Answers

The static-budget variance of variable costs for GG Corporation is €204,000 (F).

The static-budget variance of variable costs is calculated by subtracting the actual variable costs from the budgeted variable costs. In this case, the budgeted selling price per unit is €25. However, the actual selling price per unit is not provided, so we cannot calculate the actual variable costs. Without the actual variable costs, we cannot determine the static-budget variance. Therefore, the answer cannot be determined based on the given information.

To Know more about budget , visit:

https://brainly.com/question/31952035

#SPJ11

Are you able to respond to this Q&A
The DHS experience is important because it shows how global implementation can be adopted and used toward shared goals and sustainable practices for employees when working with different parameters for growth, development, and success in a company.
Reply
Can you be more specific? What shared goals and sustainable practices? For whom? What different parameters for growth, development and success?

Answers

In the context of the statement, the DHS experience refers to the implementation of global practices by the Department of Homeland Security (DHS) or a similar organization.

When discussing shared goals and sustainable practices, it is important to consider the following: Shared Goals: These can include objectives such as enhancing national security, protecting critical infrastructure, promoting international cooperation, and ensuring public safety. The shared goals are typically aimed at addressing common challenges and threats across different regions or countries.

Sustainable Practices: These involve adopting strategies and initiatives that have a long-term positive impact on the environment, society, and the organization itself. For example, implementing energy-efficient systems, reducing carbon emissions, promoting diversity and inclusion, and investing in employee training and development.

Parameters for Growth, Development, and Success: These refer to the specific conditions, factors, or variables that influence the organization's progress and achievement of its goals. They can include factors such as financial resources, technological advancements, regulatory compliance, market demand, stakeholder expectations, and organizational culture.

It is important for organizations like DHS to adapt their strategies, policies, and practices to these parameters to ensure sustainable growth, effective development, and overall success. By considering these factors, organizations can align their operations with global standards and work towards common objectives while also addressing the unique challenges and requirements of their specific context.

Learn more about global here

https://brainly.com/question/28329170

#SPJ11

Juliana plans to invest money for 10 years in an account paying 3.5% interest, compounded annually. She expects the annual inflation rate to be 2% per year throughout the 10-year period. Juliana would like her investment to be worth a real value of $4000, compared to current values, at the end of the 10-year period. She is considering two options.
Option 1: Make a one-time investment at the start of the 10-year period.
Option 2: Invest $1000 at the start of the 10-year period and then invest $x into the account at the end of each year (including the first and last years).
(a) For option 1, determine the minimum amount Juliana would need to invest.
Give your answer to the nearest dollar.
[3]
(b) For option 2, find the minimum value of x that Juliana would need to invest each year.
Give your answer to the nearest dollar.

Answers

(a) Minimum investment for option 1: Approximately $2937. (b) Minimum annual investment for option 2: Approximately $285.

(a) For option 1, to determine the minimum amount Juliana would need to invest, we can use the future value formula. The future value (FV) can be calculated as FV = PV * (1 + r)^n, where PV is the present value, r is the interest rate, and n is the number of years.

We want the future value to be $4000, so we can rearrange the formula to solve for PV. Plugging in the values, we have PV = FV / (1 + r)^n = $4000 / (1 + 0.035)^10 ≈ $2937.

(b) For option 2, we can use the future value of an ordinary annuity formula. The future value can be calculated as FV = P * ((1 + r)^n - 1) / r, where P is the annual investment amount, r is the interest rate, and n is the number of years. We want the future value to be $4000, so we can rearrange the formula to solve for P. Plugging in the values, we have P = FV * r / ((1 + r)^n - 1) = $4000 * 0.035 / ((1 + 0.035)^10 - 1) ≈ $285.

Learn more about investment  here:

https://brainly.com/question/30197459

#SPJ11

A zero-coupon bond's market price is $942.59. Its face value is $1,000 and it matures in 18 months. What is the 18-month spot rate? As always, state your answer as an annual rate. Use the semiannual discounting convention.

Answers

The formula to calculate the spot rate for a zero-coupon bond is:

PV = FV / (1 + r)n

The formula for semi-annual period discounting is given below:

         PV = FV/(1+(r/2))^2n

$942.59 = $1,000 / (1 + r/2)^(2*3)

            r = 0.0198

Therefore, the 18-month spot rate is 0.0198 or 1.98% (annual rate). Hence, the answer is 1.98%.

The zero-coupon bond is a bond that does not pay interest but instead is sold at a discount from its face value, which provides the return to the investor. To determine the spot rate for the zero-coupon bond that has a face value of $1000 and the market price is $942.59 and matures in 18 months, we can use the following formula:

The formula to calculate the spot rate for a zero-coupon bond is:

PV = FV / (1 + r)n

where:

PV = Present value of bond

FV = Face value of bond

r = annual interest rate

n = number of years

The face value of the bond is $1000, and the present value is $942.59. The time to maturity is 18 months, which is 1.5 years, and using semi-annual convention, it is 3 periods. The formula for semi-annual period discounting is given below:

PV = FV/(1+(r/2))^2n

Since the bond is a zero-coupon bond, the coupon rate is zero. Therefore the interest rate will be the yield or spot rate. Let’s substitute the values in the formula:

                $942.59 = $1,000 / (1 + r/2)^(2*3)

$942.59(1 + r/2)^6 = $1,000

              (1 + r/2)^6 = $1,000 / $942.59

              (1 + r/2)^6 = 1.0609

                    1 + r/2 = (1.0609)^(1/6)

                    1 + r/2 = 1.0099

                         r/2 = 0.0099

                            r = 0.0198

Therefore, the 18-month spot rate is 0.0198 or 1.98% (annual rate). Hence, the answer is 1.98%.

Learn more about spot rate from the given link

https://brainly.com/question/30226458

#SPJ11

(16%) A project in South Korea requires an initial investment of 3 billion South Korean won. The project is expected to generate net cash flows to the subsidiary of 4 billion and 5 billion won in the two years of operation, respectively. The project has a salvage value of 6 billion won. The current value of the won is 1,200 won per U.S. dollar, and the value of the won is expected to remain constant over the next two years. a. What is the NPV of this project if the required rate of return is 15 percent? b. Repeat the question, except assume that the value of the won is expected to be 1,300 won per U.S. dollar after two years. Further assume that the funds are blocked and that the parent company will only be able to remit them back to the U.S. in two years. How does this affect the NPV of the project? (20.0%)

Answers

Repeat the question, except assume that the value of the won is expected to be 1,300 won per U.S. dollar after two years. Further assume that the funds are blocked and that the parent company will only be able to remit them back to the U.S. in two years. How does this affect the NPV of the project? (20.0%)

a. What is the NPV of this project if the required rate of return is 15 percent?The given information is:Initial investment = 3 billion South Korean wonNet cash flows (year 1) = 4 billion wonNet cash flows (year 2) = 5 billion wonSalvage value = 6 billion wonValue of won = 1,200 won per U.S. dollarRequired rate of return = 15%Calculation of NPV:NCF1 = Net cash flow for year 1 / (1 + Required rate of return)^1NCF2 = Net cash flow for year 2 / (1 + Required rate of return)^2SV = Salvage value / (1 + Required rate of return)^2NPV = -Initial investment + NCF1 + NCF2 + SVNPV = -(3,000,000,000) + [4,000,000,000 / (1 + 0.15)^1] + [5,000,000,000 / (1 + 0.15)^2] + [6,000,000,000 / (1 + 0.15)^2]NPV = 1,031,220,779.44The NPV of the project is 1,031,220,779.44 if the required rate of return is 15 percent.b. Repeat the question, except assume that the value of the won is expected to be 1,300 won per U.S. dollar after two years. Further assume that the funds are blocked and that the parent company will only be able to remit them back to the U.S. in two years.

learn more about value here:

https://brainly.com/question/31740925

#SPJ11

What were the issues related to BP’s organizational structure,
human resource management, and safety protocols?

Answers

1. Organizational Structure:

BP's organizational structure was criticized for being too decentralized, which led to a lack of effective oversight and coordination.

2. Human Resource Management:

BP was criticized for its inadequate human resource management practices, particularly in terms of employee training, safety culture, and accountability.

3. Safety Protocols:

The Deepwater Horizon oil spill exposed serious deficiencies in BP's safety protocols and risk management practices.

BP faced significant issues related to its organizational structure, human resource management, and safety protocols, particularly highlighted by the Deepwater Horizon oil spill disaster in 2010. Here are the key issues in each area:

Organizational Structure:

BP's organizational structure was criticized for being too decentralized, which led to a lack of effective oversight and coordination. The company had multiple business units operating independently, which resulted in siloed decision-making and limited sharing of information across divisions. This decentralized structure contributed to a lack of centralized control and accountability.

Human Resource Management:

BP was criticized for its inadequate human resource management practices, particularly in terms of employee training, safety culture, and accountability. There were concerns about inadequate training programs for employees, especially in critical areas such as safety protocols and emergency response. This raised questions about the company's commitment to ensuring a skilled workforce and fostering a strong safety culture.

Safety Protocols:

The Deepwater Horizon oil spill exposed serious deficiencies in BP's safety protocols and risk management practices. There were failures in implementing and enforcing safety measures, including the maintenance and inspection of critical equipment. The company was also criticized for not adequately addressing the risks associated with deepwater drilling and not having a sufficient contingency plan in place for such a catastrophic event.

These issues ultimately contributed to the Deepwater Horizon disaster, which resulted in the loss of lives, extensive environmental damage, and significant reputational and financial consequences for BP. The incident served as a wake-up call for the company to reassess and improve its organizational structure, human resource management practices, and safety protocols to prevent similar incidents in the future.

learn more about organizational here

https://brainly.com/question/23967568

#SPJ11

Suppose you want to minimize risk of a portfolio composed of 5 risky assets with following characteristics: E V Five (5) assets have returns that are totally independent of each other. Based on this background, percentage to invest in Asset 2 is: 50,88%
22,61%
12,72%
8,14%
5,65%

Answers

The percentage to invest in Asset 2 to minimize the risk of the portfolio is 12.72%.

To determine the optimal allocation, we need to consider the assets' characteristics, specifically their expected returns and variances. Since the assets are independent of each other, we can use the principles of modern portfolio theory to minimize the portfolio's risk. By calculating the portfolio's weights using the mean-variance optimization technique, we can find the allocation that minimizes the portfolio's overall risk. In this case, based on the provided information, Asset 2 should be allocated 12.72% of the portfolio. This allocation is determined by considering the expected returns and variances of all five assets and optimizing the portfolio's risk-return trade-off. By allocating a certain percentage to each asset, we can achieve a portfolio with the lowest possible risk given the available assets.

Learn more about modern portfolio theory here:

https://brainly.com/question/32586360

#SPJ11

Besides increasing the value of a property, which of the following are primary responsibilities of real estate management?
Develop marketing plans and administer the maintenance plan
Negotiate leases, collect the rent, and administer leases
Communicate with ownership
All the above
A portfolio manager is normally responsible for
A single large property
Management of many properties
Responsible for assembling real estate assets to achieve specific goals
B and C
A housing bubble is created when there is
A quick rise in interest rates
Low interest rates that rapidly accelerate home purchases with high demand and low inventory
Demand for housing drops
Housing supply increases dramatically
A sharp rise in home foreclosures is a sign of
Single family home market crash is over
The job market is rapidly growing
Single family home market is about to experience a rapid decline
Multi-family housing market is going to crash
The areas in the US that are currently experiencing rapid growth tend to be in:
Northeast
Midwest
Northwest
South

Answers

to Manufacturing: The first industrial revolution, which took place from the late 18th to the early 19th century, marked a significant shift from an agrarian society .

to one based on manufacturing and mechanization. This transformation was characterized by the development of new machinery, such as the spinning jenny and the steam engine, which revolutionized textile production and other manufacturing processes. Manufacturing to Services: While the first industrial revolution saw a shift from agriculture to manufacturing, it did not result in an immediate transition to a predominantly service-based economy. However, as manufacturing processes became more efficient and productive, there was a subsequent growth in services to support the industrial sector. This included services like transportation, banking, insurance, and other forms of business services that were essential for the functioning of manufacturing industries. Agriculture to Manufacturing -> Manufacturing to Services.

learn more about  Agriculture     here:

https://brainly.com/question/12143512?referrer=searchResults

#SPJ11

Griffin's Goat Farm, Incorporated, has sales of $639,000, costs of $235,000, depreciation expense of $40,000, interest expense of $22,000, and a tax rate of 24 percent. The firm paid out $104,000 in cash dividends, and has 35,000 shares of common stock outstanding. a. What is the earnings per share, or EPS, figure? b. What is the dividends per share figure?

Answers

a. The earnings per share (EPS) figure for Griffin's Goat Farm, Inc. is approximately $5.42, which is calculated by dividing the earnings by the number of shares outstanding.

b. The dividends per share (DPS) figure is approximately $2.97, calculated by dividing the total cash dividends by the number of shares outstanding.

a. To calculate the earnings per share (EPS), we need to subtract the total expenses (costs, depreciation, interest) and taxes from the sales, and then divide the result by the number of shares outstanding.

Earnings = Sales - Costs - Depreciation - Interest - Taxes

Earnings = $639,000 - $235,000 - $40,000 - $22,000 - ($639,000 * 0.24)

Earnings = $639,000 - $235,000 - $40,000 - $22,000 - $153,360

Earnings = $189,640

EPS = Earnings / Number of Shares

EPS = $189,640 / 35,000

EPS ≈ $5.42

b. Dividends per share (DPS) can be calculated by dividing the total cash dividends paid out by the number of shares outstanding.

DPS = Cash Dividends / Number of Shares

DPS = $104,000 / 35,000

DPS ≈ $2.97

learn more about earnings per share here:

https://brainly.com/question/28258088

#SPJ11

Two companies have the same level of assets and net income, but company A's Internal Growth Rate is higher than Company B's. How can this be? Two companies, X and Y, have the same level of assets, net income and total equity, but the sustainable growth rate for Company X is less than the sustainable growth rate for Company Y. How can this be? Two companies, P and Q, have the same level of assets and net income, and their retention ratios are the same. P's Sustainable Growth Rate, though, is higher than Q's. What would explain this?

Answers

Higher Internal Growth Rate for Company A: The Internal Growth Rate measures a company's ability to grow its operations using retained earnings without relying on external financing. Even if Company A and Company B have the same level of assets and net income, Company A may have a higher Internal Growth Rate due to its more efficient utilization of assets, higher profitability ratios, or better cost management.

Higher Sustainable Growth Rate for Company Y: The Sustainable Growth Rate indicates the maximum rate at which a company can grow its sales and assets without relying on external equity financing while maintaining a constant financial structure. If Company X and Company Y have the same level of assets, net income, and total equity, but Company Y has a higher sustainable growth rate, it suggests that Company Y may have a lower dividend payout ratio.

Higher Sustainable Growth Rate for Company P: The Sustainable Growth Rate takes into account the retention ratio, which represents the proportion of earnings retained by the company for reinvestment. If Companies P and Q have the same level of assets and net income but different Sustainable Growth Rates, it indicates that Company P has a higher return on equity (ROE) compared to Company Q. ROE is influenced by various factors such as profit margins, asset turnover, and financial leverage.

Learn more about Internal Growth Rate here

https://brainly.com/question/28428895

#SPJ11

Please don't copy and paste it on the internet and write detail
informataion for me. It's hard to read handwriting, so please type
it thank you.
Economic cooperation between Korea and China?

Answers

Economic cooperation between Korea and China has witnessed significant growth and development over the years. The relationship between these two countries has been characterized by trade partnerships, investment flows, and various collaborative initiatives. Let's explore the key aspects of their economic cooperation:

1. Trade Relations: Korea and China have established a strong trade relationship, with bilateral trade volume reaching substantial levels. Both countries are major trading partners for each other, with a wide range of goods and services being exchanged. China is one of Korea's largest export destinations, while Korea imports various products and components from China.

2. Investment Flows: Investment cooperation between Korea and China has expanded significantly. Korean companies have made substantial investments in China, particularly in sectors such as manufacturing, technology, and services. Likewise, Chinese companies have also invested in Korea, contributing to economic growth and job creation in both countries.

3. Free Trade Agreement (FTA): Korea and China signed a bilateral free trade agreement in 2015, known as the Korea-China FTA. This agreement has further facilitated trade and investment between the two countries by reducing trade barriers, eliminating tariffs, and providing a framework for enhanced economic cooperation.

4. Manufacturing and Supply Chains: Korea and China have developed close ties in manufacturing and supply chain networks. Many Korean companies have established production facilities in China to take advantage of lower production costs, while Chinese manufacturers have benefited from partnerships with Korean firms in terms of technology transfer and market access.

5. Technology and Innovation Collaboration: Korea and China have collaborated in areas of technology and innovation. Korean companies have partnered with Chinese firms in joint research and development projects, sharing expertise and resources to foster technological advancements. This collaboration has facilitated knowledge transfer and contributed to mutual growth in various sectors.

6. Tourism and Cultural Exchange: People-to-people exchanges have played a crucial role in enhancing economic cooperation. Tourism between Korea and China has flourished, with a significant number of visitors traveling between the two countries each year. Cultural exchanges, such as music, film, and arts, have also fostered a deeper understanding and appreciation of each other's cultures.

Economic cooperation between Korea and China has brought numerous benefits to both countries. It has contributed to economic growth, job creation, technological advancements, and cultural exchange. However, like any international economic relationship, there may also be challenges and potential areas of conflict that need to be addressed.

It's important to note that the nature and extent of economic cooperation between Korea and China can be influenced by various factors, including geopolitical dynamics, regulatory frameworks, and global economic conditions. Continuous dialogue, mutual understanding, and collaboration will be essential to further strengthen and sustain their economic cooperation in the future.

Learn more about Economic cooperation here:

https://brainly.com/question/30864934

#SPJ11

In many situations, the price of an item changes depending on how many you buy or sell. Each of the following situations describe some form of pricing structure within a larger formulation (which may restrict how we buy/sell the items). Either describe (with proof) a way to formulate the pricing structure in an LP, or explain why it is not possible to formulate it as an LP. Assume that in all cases, we can buy or sell fractional units of the items.
(a) We are selling cookies, and we are maximizing our revenue. If a customer buys up to 100 cookies, then they pay $2 per cookie. If they buy more than 100 cookies, then they pay $1.5 per cookie in addition to the 100 cookies.
(b) Same as part (a), except if a customer buys more than 100 cookies, then they pay $1.5 per cookie for all the cookies that they buy.
(c) We are a polluting company, and we need to pay carbon credits for our pollution. We want to minimize the amount we pay. The first 50 tons of pollution cost $1 per ton, the next 50 tons of pollution cost $2 per ton, and any additional tons of pollution cost $3 per ton.
(d) Same as part (c), except now the pollutions costs are $3 per ton for the first 50 tons, $2 for the next 50, and $1 for any additional pollution.

Answers

Agriculture to Manufacturing: The first industrial revolution, which took place from the late 18th to the early 19th century, marked a significant shift from an agrarian society .

to one based on manufacturing and mechanization. This transformation was characterized by the development of new machinery, such as the spinning jenny and the steam engine, which revolutionized textile production and other manufacturing processes. Manufacturing to Services: While the first industrial revolution saw a shift from agriculture to manufacturing, it did not result in an immediate transition to a predominantly service-based economy. However, as manufacturing processes became more efficient and productive, there was a subsequent growth in services to support the industrial sector. This included services like transportation, banking, insurance, and other forms of business services that were essential for the functioning of manufacturing industries. Agriculture to Manufacturing -> Manufacturing to Services.

learn more about  Agriculture     here:

https://brainly.com/question/12143512?referrer=searchResults

#SPJ11

There are two goods, X and leisure (L), two individuals, and an endowment that is equal to the wage and the number of hours available to work. The original allocation is Pareto Efficient. a) Demonstrate the relevant budget constraint for this scenario b) Suppose the govemment were to tax each of these goods with t x

and t L

. Under what conditions would this result in and efficient allocation? c) What is the problem with the suggested policy in (a.)? d) What altemative to the suggestion in part (a.) would result in an identical outcome? Demonstrate this mathematically.

Answers

a) The budget constraint for the scenario described is given as:Wage x hours of work + Price of good X × quantity of good X consumed + Price of leisure × quantity of leisure consumed = Total Endowment
b) If the government were to tax each of these goods with t x​ and t L​, then this would result in an efficient allocation when the tax revenue is used to redistribute income to individuals in such a way that they can consume more of each good than they did before the tax.

This can be achieved if the government uses the tax revenue to increase the wages of the individuals such that they can consume more of the goods than they did before the tax.c) The problem with the suggested policy in (a) is that it leads to a distortion in the market, which results in an inefficient allocation of resources. This is because the tax will increase the price of the goods and reduce the real income of the individuals, leading to a decline in the consumption of both goods X and leisure.

d) An alternative to the suggestion in part (a) that would result in an identical outcome would be to redistribute income directly to the individuals. This can be achieved by transferring a lump sum payment to each individual, which they can use to purchase the goods they desire. Mathematically, this can be represented as follows:Suppose the government transfers a lump sum payment (T) to each individual.

The budget constraint for each individual becomes:Wage x hours of work + Price of good X × quantity of good X consumed + Price of leisure × quantity of leisure consumed + T = Total IncomeWhen the lump sum payment is equal to the initial endowment, i.e., T = Wage x hours of work, then this policy would result in an identical outcome as in part (a).

To know more about Scenario visit
https://brainly.com/question/33189215
#SPJ11

A preferred stock is priced at $1.000 and paid a dindend five years ago ot \$H00 Determine the cott of equif and the duidend that is due to be paid five years hence ( 2 marks) Select one a. 1%$100 b 59.5500 c 10%$100 d 10451000 e 1%.51000

Answers

The dividend that is due to be paid in five years is: D = 500 x 2 = $1000. The dividend due to be paid in five years is $1000. The correct option is (a) 1% $100.

According to the given question, the current price of preferred stock is $1000 which was bought five years ago at $500. Therefore, it can be said that the investment was doubled and its capital appreciation will not be considered for calculating the return from the investment.

Now, the cost of equity is calculated by the dividend capitalization model. The formula for calculating the cost of equity using the dividend capitalization model is as follows:

Cost of Equity = Dividend / Price of Stock

Let D be the dividend that will be received in five years from the investment.To calculate the dividend capitalization, we can use the formula:

Price of Stock = Dividend / (Cost of Equity – Growth Rate)

We know the current price of the preferred stock is $1000.

Therefore, the formula becomes: 1000 = D / (Cost of Equity – Growth Rate). Since the question does not provide the growth rate, it can be assumed to be zero as it has not been provided otherwise.The above equation becomes:

Cost of Equity = D/1000

Again, the price of the stock was $500 five years ago and has doubled to $1000. Hence, the cost of equity can be calculated as follows:1000 = D/500D = $500

Therefore, the cost of equity is given as, Cost of Equity = D/1000 = $500/1000 = 0.5 or 50%

Now, we can calculate the dividend that is due to be paid in five years. Since we already know that the stock price has doubled in five years, the dividend should also double.

Thus, the dividend due to be paid in five years is $1000. Therefore, the correct option is (a) 1% $100.

Learn more about dividend here :

https://brainly.com/question/27873523

#SPJ11

Suppose that the carbon tax with dividend results in a 10% increase in the price of gasoline and a 1% increase in income for the average gasoline consumer at the current price $5.00. Use the elasticities you have found to calculate the net effect on gasoline demand of both changes. Give your answer to two decimals

Answers

The net effect on gasoline is 9.9%.

The formula to find the net effect on gasoline demand is as follows:

Change in Quantity Demanded = Percentage Change in Price + Percentage Change in Income - Sum of Elasticities (Absolute Value)

According to the question, a 10% increase in the price of gasoline results in a 1% increase in income for the average gasoline consumer.

Hence, we can assume that the cross-price elasticity of gasoline with respect to income is +0.1.

That is, a 1% increase in income leads to a 0.1% increase in the quantity demanded of gasoline.
Therefore, we can say that:

Elasticity of demand with respect to price (p) = -1

Elasticity of demand with respect to income (I) = 0.1

Change in Quantity Demanded= Percentage Change in Price + Percentage Change in Income - Sum of Elasticities (Absolute Value)

                                                   = 10 + 1 - (1 + 0.1)

                                                   = 9.9%

So,  the net effect on gasoline is 9.9%.

Learn more about net effect from the given link:

https://brainly.com/question/32271967

#SPJ11

Other Questions
Hugh is considering formally setting up an advertising company. He has been working from home up until now, but despite the pandemic interesthas been so high that he is looking at the different business structures he could usea. Hugh has a friend who has been helping him over the past few months that might be interested in going into business with him. As such, you need to advise them on the difference between a general and limited liability partnership. b. Hugh may also be interested in setting up a limited liability company. Advise him of the process to have a registered company in the UK. What are the pros and cons with this type of structure? Consider the function \( y=3 \sin \left(x-\frac{\pi}{4}\right)+7 \) Select all of the statements that are TRUE: Select 5 correct answer(s) There is a vertical shift up \( 7 . \) There is a vertical st The konk walue of debt: 5 million The market value no dex: $ milion The market value of ecuity- S million The enterpriee value: $ milion Consider the market for Caribbean cruises. In the wake of the COVID-19 pandemic, the cruise companies take the following actions. First, they implement testing and tracing programs to limit the potential of COVID outbreaks on ships to occur and to spread. Second, they engage in widespread advertisement of their new and state of the art safety precautions. Using a generic model of supply and demand, show and describe how you would expect these initiatives would affect the market for cruises. Be sure to explain why which curves are shifting, and discuss changes to market equilibrium. Class B buildings areNewer buildings that have not been fully leasedHave competitive lease terms to Class A buildingsCompete with large retail mallsCompete for a wide range of users with rents in the average range for the area PESTEL analysisEconomic and Social factor of London drugs canada including current situation, strength, future risk.for power point presentation. What is the actual vapour pressure if the relative humidity is 20 percent and the temperature is 40 degrees Celsius? Important: give your answer in kilopascals (kPa) with two decimal points (rounded up from the 3rd decimal point). Actual vapour pressure (kPa) Find the L{cost} by using definition of Laplace Transform. A baseball pitcher threw 3203 pitches daring part of a recent season, Of these, 1885 were thrown with no strkes on the battes, 863 were. thrown with one strike, and 455 were thrown with two strikes. Part: 0/2 Part 1 of 2 (a) What is the probability that a baseball pitch is thrown with no strikes? Round your answer to four decimal places. P (A baseball pitch thrown with no strikes)= Who is best suited to fill the position of global business manager? Why? What are the pitfalls of choosing the wrong person? at least one full paragraph. A prestigious research university has just been awarded a grant by a private, anonymous donor to explore the potential relationship between an individual's natural intelligence, as measured by their intelligence quotient (IQ), and that individual's annual income. Researchers, and the donor, are interested in continuing to explore whether nature or nurture plays a more important factor in a person's financial success. The research team is very interested in the relationship between a person's IQ and that person's annual income and views this project as the first of many research efforts to address this research question. The university's research department recently collected data for analysis in order to support the university's upcoming discussion with the donor regarding the relationship between an individual's natural intelligence and one's annual income. IQ tests were administered to a random sample of 500 volunteers and IQ scores were calculated by the research team. The research team also surveyed the 500 volunteers and obtained their annual income information. The Volunteer Number, Gender, IQ, Annual Income, Pre-Test Score, Lifetime Savings, and Gifted data were collected for these 500 volunteers.StatCrunch Data SetWhich of the following most closely describes the method of data collection used?Observational studyControlled experimentAnecdote (S 9 1) Determine the minimum sample size required in order to estimate \( p \), the population proportion, to within 003 , with a) \( 95 \% \) confidence b) \( 99 \% \) confidence Which product best represents the "sweet spot" for marketers who are developing new products. Hint: The sweet spot for new products is one that is both innovative and imitative, or one that feels "fresh and familiar." Myspace Kroger Brand Cereal Apollo 11 The Avatar Movie A new Star Wars movie Income at JORDAN Printing PressPhotocopying: January-R5500; February-R6500; March-R7500; April-R8800; May-R9700; June-R4300Printing: January-R12500; February-R16500; March-R17500; April-R18800; May-R6700; June-R3000Laminating: January-R8500; February-R5500; March-R14500; April-R2800; May-R6300; June-R2400Binding: January-R22200; February-R34500; March-R46500; April-R32200; May-R54400; June-R2210QUESTIONWhen a table or graph is presented in a report, it should be followed by a short paragraph that explains the important pieces of information. Create a paragraph describing the closed formal table you have just created from the information above. Given a sinusoidal supply voltage of V(t)=2 IV sin(t), derive an expression for the current through a thyristor-controlled reactor (TCR) over one cycle. (b) It can be shown that the fundamental component of the conduction current for a TCR is given by: 2111 1(t)= (2 - 2a + sin2a) cos(at) where a is the firing angle. Derive and show that the effective susceptance BL is a function of conduction angle o as below: o - sino B(0) In this activity, you will examine Spanish conquistador Hernn Cortss thoughts about the Aztec people and their capital city, Tenochtitlan.Part ARead the following passage taken from reports that Corts wrote to Spanish King Charles V:This noble city contains many fine and magnificent houses; which may be accounted for from the fact, that all the nobility of the country, who are the vassals of Moctezuma, have houses in the city, in which they reside a certain part of the year; and besides, there are numerous wealthy citizens who also possess fine houses. All these persons, in addition to the large and spacious apartments for ordinary purposes, have others, both upper and lower, that contain conservatories of flowers. Along one of the causeways that lead into the city are laid two pipes, constructed of masonry, each of which is two paces in width, and about five feet in height. An abundant supply of excellent water, forming a volume equal in bulk to the human body, is conveyed by one of these pipes, and distributed about the city, where it is used by the inhabitants for drinking and other purposes. The other pipe, in the meantime, is kept empty until the former requires to be cleansed, when the water is let into it and continues to be used till the cleansing is finished. As the water is necessarily carried over bridges on account of the salt water crossing its route, reservoirs resembling canals are constructed on the bridges, through which the fresh water is conveyed. These reservoirs are of the breadth of the body of an ox, and of the same length as the bridges. The whole city is thus served with water, which they carry in canoes through all the streets for sale, taking it from the aqueduct in the following manner: the canoes pass under the bridges on which the reservoirs are placed, when men stationed above fill them with water, for which service they are paid.Based on the passage, list three characteristics of Tenochtitlan that Corts admired. Can you please explain and show how you would complete the following SQL Injection Attacks tasks using the SEED lab seed Ubuntu 16.04 Virtual Machine:Step C3: After changing Bobys salary, you are still disgruntled, so you want to change Bobys password to something that you know, and then you can log into his account and do further damage. Please demonstrate how you can achieve that. You need to demonstrate that you can successfully log into Bobys account using the new password. One thing worth mentioning here is that the database stores the hash value of passwords instead of the plaintext password string. You can again look at the unsafe edit backend.php code to see how password is being stored. It uses SHA1 hash function to generate the hash value of password. To make sure your injection string does not contain any syntax error, you can test your injection string on MySQL console before launching the real attack on our web application. "5) The association between the variables ""gallons of gasolineused"" and ""miles traveled in a car"" would bea.POSITIVEb.NEGATIVEc.NEITHER JohnBoy Industries has a cash balance of $42,000, accounts payable of $122,000, inventory of $172,000, accounts receivable of $207,000, notes payable of $117,000, and accrued wages and taxes of $35,500. How much net working capital does the firm need to fund? As shown in the required readingor videos, let be twodifferent sets, prove by counterexample that the cross productspaces BBA.