The correct answer is c. Both a. and b. A bank is not liable for making payments on a postdated check unless the drawer has given the bank prior notice is true.
Option a states that a bank is not liable for making payments on a postdated check unless the drawer has given the bank prior notice. This is true because a postdated check contains a future date on it, and the bank is not obligated to honor the check before the specified date unless the drawer has informed the bank in advance.
Option b states that if a check has not been certified, the holder has no claim against the bank for the dishonor of the check, regardless of the fact that the bank was wrong in its dishonor. This is also true because when a check is not certified, the bank is not legally obligated to honor it. If the bank refuses to pay or dishonors the check, the holder does not have a claim against the bank, even if the bank's decision to dishonor the check was incorrect.
Therefore, both statements a and b are true. A bank is not liable for making payments on a postdated check without prior notice, and the holder of a non-certified check has no claim against the bank for the dishonor of the check.
Learn more about postdated check here: brainly.com/question/27960337
#SPJ11
Which of the following statements omits one of the components of
the description of gross domestic product (GDP)?
GDP is the aggregate income earned by all households and all
companies within the economy in a given period in time.
GDP is the market value of all final goods and services produced within the economy in a given period of time.
GDP is the total amount spent on all final goods and services produced within the economy over a given period of time.
The statement that omits one of the components of the description of gross domestic product (GDP) is: "GDP is the aggregate income earned by all households and all companies within the economy in a given period in time."
The description of GDP includes three components: market value, final goods and services, and total spending. The first statement omits the component of market value and instead focuses on aggregate income earned by households and companies. While income earned is related to economic activity, it is not the same as GDP.
GDP represents the market value of all final goods and services produced within an economy in a given period of time. It measures the total output of an economy by assigning a monetary value to the final products and services produced. This is captured in the second statement, which correctly includes all three components of GDP: market value, final goods and services, and the given period of time.
The third statement also correctly describes GDP by stating that it is the total amount spent on all final goods and services produced within the economy over a given period of time. This highlights the idea that GDP can be measured by aggregating the total expenditures made by consumers, businesses, government, and net exports.
Therefore, the statement that omits one of the components of the description of GDP is the first statement, which neglects the market value aspect of GDP.
Learn more about gross domestic product
https://brainly.com/question/31655575
#SPJ11
All of these are true for parasympathetic neurons, except a. part of the autonomic nervous system b. usually cause excitation of an organ c. found entirely outside of CNS d. part of peripheral nervous system
The statement that is not true for parasympathetic neurons is: b. usually cause excitation of an organ. So, the correct option is b.
Parasympathetic neurons are indeed part of the autonomic nervous system (ANS) (option a). They are responsible for regulating the body's involuntary functions and work in conjunction with the sympathetic neurons to maintain homeostasis. The ANS controls various physiological processes such as heart rate, digestion, and glandular secretions.
However, the statement that parasympathetic neurons usually cause excitation of an organ (option b) is incorrect. Parasympathetic neurons generally have an inhibitory effect on organs rather than causing excitation. When parasympathetic neurons are activated, they tend to decrease heart rate, constrict blood vessels, and promote rest and digestion.
Regarding option c, parasympathetic neurons are not found entirely outside the central nervous system (CNS). While the cell bodies of parasympathetic neurons are located outside the CNS, in ganglia close to the target organs, their axons extend from the CNS to these ganglia and then innervate the organs.
Lastly, parasympathetic neurons are indeed part of the peripheral nervous system (PNS) (option d). The PNS consists of nerves and ganglia located outside the CNS, and both parasympathetic and sympathetic neurons are components of the PNS.
In summary, the statement that is not true for parasympathetic neurons is option b, as they usually cause inhibition rather than excitation of an organ.
Learn more about parasympathetic neurons
https://brainly.com/question/31032620
#SPJ11
You can afford $300 per month for car loan payments. For a 36-month loan at 5.5% stated annual interest, with the first payment one month from now, how much can you borrow
This means that you can borrow up to $9,935.13 for a 36-month car loan at 5.5% annual interest.
the formula for calculating the present value of an annuity is:
PV = PMT * [1 - (1 + r)^-n] / r
Where:
* PV = present value
* PMT = monthly payment
* r = annual interest rate
* n = number of payments
In your case, the following values would be used in the formula:
* PMT = $300
* r = 5.5% / 12 = 0.045
* n = 36 months
Plugging these values into the formula, we get the following present value:
PV = $300 * [1 - (1 + 0.045)^-36] / 0.045 = $9,935.1
Please note that this is just an estimate, and the actual amount you can borrow may vary depending on your credit score and other factors. It is always best to speak with a lender to get a more accurate quote.
Learn more about annual Interest rate here:
https://brainly.com/question/31261623
#SPJ11
Consider the market for loanable funds. Suppose that the market is currently in equilibrium. President Biden has proposed a large spending plan called Build Back Better that is predicted to increase (in the short term) the size of the federal government's budget deficit.
1) What is the initial effect of this act? (4 pts.)
2) How does the market adjust? (8 pts.)
3) How is equilibrium affected? (4 pts.)
The initial effect of President Biden's Build Back Better act is to increase the size of the federal government's budget deficit. This means that the government will need to borrow more money to finance its spending plans. The demand for loanable funds will increase, causing interest rates to rise.
At the same time, the supply of loanable funds will not change, since the amount of savings in the economy is not affected by government spending. As a result, the interest rate will increase to a new equilibrium level.
2) The market for loanable funds will adjust by increasing the interest rate. This will cause a decrease in the quantity of loanable funds demanded and an increase in the quantity of loanable funds supplied. The decrease in the quantity of loanable funds demanded is due to the higher interest rate, which makes borrowing more expensive. The increase in the quantity of loanable funds supplied is due to the higher interest rate, which makes saving more attractive.
3) The equilibrium in the market for loanable funds will be affected by the increase in the interest rate. The new equilibrium will have a higher interest rate and a lower quantity of loanable funds exchanged. This means that borrowing will become more expensive and saving will become more attractive. The impact of the Build Back Better act on the economy will depend on how the increased government spending is financed. If it is financed by borrowing, then the increase in the interest rate may lead to a crowding out of private investment. If it is financed by taxes, then the increase in government spending may lead to a multiplier effect, as the additional spending leads to an increase in aggregate demand.
To know more about government's visit:
brainly.com/question/32011563
#SPJ11
According to the pure expectations hypothesis, the maturity risk premium is O Cannot be answered without more information. O zero. O positive. O negative. O Sometimes positive and sometimes negative, but never zero. The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). According to the expectations theory, what should be the interest rate on 3-year, risk-free securities today? O 8.40% O 8.00% O 8.20% O 8.60% O 8.80%
According to the expectations theory, the interest rate on 3-year, risk-free securities today should be 8.20% i.e. option C. The pure expectations theory is based on the idea that investors' future inflation expectations determine the shape of the yield curve.
According to the theory, the yield on a long-term security is a function of the expected future short-term interest rates plus a premium for the risk associated with holding the security.
The formula used to calculate the yield on long-term securities is as follows:
Y(3) = (Y(1)) (1 + i2) (1 + i3)²
where: Y(3) is the yield on a 3-year security
Y(1) is the yield on a 1-year security
i2 is the expected inflation rate for year 2
i3 is the expected inflation rate for year 3
Using the given data, we can calculate the expected inflation rates for years 2 and 3 as follows:
Expected inflation rate for year 2 = ((4% + 5%) / 2) = 4.5%
Expected inflation rate for year 3 = ((5% + 6%) / 2) = 5.5%
Now, substituting the values in the formula, we get:
Y(3) = (3%) (1 + 4.5%) (1 + 5.5%)²
Y(3) = 8.20%
Hence, the interest rate on 3-year, risk-free securities today should be 8.20%. Therefore, option C is the correct answer.
To know more about the Pure Expectations Theory visit:
https://brainly.com/question/14845474
#SPJ11
(a) Why is the originate-to-distribute business model of the shadow banking system
subject to the principal-agent problem?
(b) In what ways are the economic downturn caused by the COVID-19 pandemic similar
to a financial crisis?
(c) Can the COVID-19 pandemic lead to a financial crisis? Explain your answer.
(a) The originate-to-distribute business model of the shadow banking system is subject to the principal-agent problem due to the separation of ownership and control, creating misaligned incentives and potential conflicts of interest.
(b) The pandemic-induced downturn resulted in business closures, layoffs, and reduced consumer spending, similar to the impact of a financial crisis.
(c) The COVID-19 pandemic has the potential to lead to a financial crisis, although it depends on various factors.
How does the principal-agent problem affect the originate-to-distribute business model of the shadow banking system?(a) The originate-to-distribute business model of the shadow banking system is subject to the principal-agent problem due to the separation of ownership and control, creating misaligned incentives and potential conflicts of interest.
In this model, the original lenders act as agents who originate loans and then sell them to investors, who are the principals.
The agents may prioritize their own short-term interests, such as generating fees, over the long-term risks associated with the loans they originate.
This misalignment of interests can result in the origination of low-quality loans, which can lead to financial instability.
(b) The economic downturn caused by the COVID-19 pandemic is similar to a financial crisis in several ways.
Both events involve a significant disruption to economic activity and a widespread loss of confidence in the financial system.
The pandemic-induced downturn resulted in business closures, layoffs, and reduced consumer spending, similar to the impact of a financial crisis.
Governments and central banks have also implemented fiscal and monetary measures to stimulate the economy and stabilize financial markets, mirroring actions taken during a financial crisis.
(c) The COVID-19 pandemic has the potential to lead to a financial crisis, although it depends on various factors.
The severity and duration of the pandemic, the effectiveness of policy responses, and the resilience of the financial system all play a crucial role.
The economic impact of the pandemic, such as high levels of unemployment, business closures, and debt defaults, can strain financial institutions and markets.
If these pressures persist and escalate, they could trigger a broader financial crisis characterized by systemic risks, bank failures, and a credit crunch.
Timely and effective policy interventions, along with strong financial regulation and supervision, are essential in mitigating the risk of a pandemic-induced financial crisis.
Learn more about business model
brainly.com/question/32805873
#SPJ11
what are the internal and external elements affecting the salvation
army organization design
Internal and external elements affecting the Salvation Army's organizational design may vary over time and in different geographic locations
Internal Elements:
Mission and Values: The Salvation Army's mission and core values play a significant role in shaping its organizational design. The focus on providing social services, helping the needy, and promoting spiritual well-being affects the structure, roles, and processes within the organization.
Organizational Size and Structure: The size and structure of the Salvation Army can affect its design. Larger organizations may have more complex structures with multiple departments and hierarchies, while smaller organizations may have simpler structures with fewer layers of management.
Leadership and Management: The leadership style, skills, and decisions of top-level management influence the organization's design. Effective leaders can shape the culture, strategy, and structure to align with the Salvation Army's goals and values.
Organizational Culture: The beliefs, values, norms, and practices within the Salvation Army influence how the organization is designed. For example, if the culture emphasizes teamwork and collaboration, the design may include cross-functional teams and decentralized decision-making.
Resources and Budget: The availability and allocation of resources, including financial, human, and technological resources, can impact the organization's design. Limited resources may require the Salvation Army to make strategic choices about the structure and processes that best utilize its resources.
External Elements:
Stakeholders: The interests and expectations of external stakeholders, such as donors, government agencies, communities, and the people served by the Salvation Army, can influence the organization's design. The organization may need to adapt its structure and processes to meet stakeholder needs and maintain support.
Legal and Regulatory Environment: The legal and regulatory frameworks within which the Salvation Army operates can affect its organizational design. Compliance with laws and regulations related to employment, funding, nonprofit governance, and social services can shape how the organization is structured and operates.
Economic Conditions: Economic factors, such as changes in funding, philanthropic support, and the overall economic climate, can impact the Salvation Army's design. Economic challenges may require the organization to restructure or streamline its operations to maintain financial sustainability.
Social and Cultural Factors: Societal and cultural trends, attitudes, and expectations can influence the organization's design. The Salvation Army may need to adapt to changes in social needs, demographic shifts, or cultural norms to effectively deliver its services.
Technological Advances: Advancements in technology can impact the Salvation Army's organizational design. Embracing new technologies, such as digital communication tools, data management systems, and online platforms, can enhance the organization's efficiency and effectiveness.
To know more about internal and external elements visit:
https://brainly.com/question/29383641
#SPJ11
When determining the weighted average cost of copital (WhcC) to be used in capital budgeting, which of the following is not a capital compenent? Common equlty Long-term debt Shart-tesm debt Accounts payable Praferred stock
When determining the weighted average cost of capital (WACC) to be used in capital budgeting, the component that is not a capital component is "Accounts payable."
WACC is the average cost of financing a company's operations through various sources, such as equity and debt. It is calculated by taking the weighted average of the cost of each capital component.
The capital components typically considered when calculating WACC are:
1. Common equity: This represents the ownership stake in the company held by shareholders.
2. Long-term debt: This includes bonds and other long-term borrowing arrangements.
3. Short-term debt: This includes short-term loans and lines of credit.
4. Preferred stock: This represents a class of shares with fixed dividend payments.
Accounts payable, on the other hand, refers to the money a company owes to its suppliers for goods or services purchased on credit. It is not considered a capital component because it is a liability rather than a source of financing. Therefore, it is not included in the calculation of WACC.
Learn more about capital
https://brainly.com/question/32408251
#SPJ11
When clients have dyspnea (difficult or painful breathing), they are often anxious and upset. What are two interventions the PSW could do to help reduce their anxiety? (2 Marks) 12. Name three breathing illnesses that may require the client to use oxygen on either a temporary or continuous basis. (3 Marks) Lit "!
PSWs can reduce dyspnea-related anxiety by providing reassurance and support, teaching relaxation techniques. Breathing illnesses requiring oxygen include COPD, asthma, and pulmonary fibrosis.
Two interventions a Personal Support Worker (PSW) could do to help reduce a client's anxiety related to dyspnea are:
1. Provide reassurance and emotional support: The PSW can offer verbal reassurance to the client, acknowledging their feelings and empathizing with their distress. They can create a calm and supportive environment, listening actively to the client's concerns and providing comfort through compassionate communication.
2. Teach and encourage relaxation techniques: The PSW can educate the client on simple relaxation techniques such as deep breathing exercises, guided imagery, or progressive muscle relaxation. These techniques can help the client focus on their breathing, reduce anxiety, and promote a sense of calmness and control.
Three breathing illnesses that may require the client to use oxygen on either a temporary or continuous basis are:
1. Chronic Obstructive Pulmonary Disease (COPD): COPD is a progressive lung disease that obstructs airflow and makes breathing difficult. In severe cases, oxygen therapy may be necessary to help improve oxygen levels in the blood.
2. Asthma: Asthma is a chronic condition characterized by inflammation and narrowing of the airways, leading to recurrent episodes of wheezing, coughing, and shortness of breath. In severe asthma attacks, oxygen supplementation may be required to support breathing.
3. Pulmonary Fibrosis: Pulmonary fibrosis is a lung disease where the lung tissues become scarred and thickened, impairing their ability to expand and contract. Oxygen therapy may be prescribed to alleviate dyspnea and improve oxygenation in individuals with advanced pulmonary fibrosis.
Learn more about dyspnea here:
https://brainly.com/question/30403630
#SPJ11
PROJECT MANAGEMENT
What is the purpose of a load/Gantt chart?
Group of answer choices
To differentiate between parallel and sequential tasks
To ensure team members are not over or under utilized
To ca
The purpose of a load/Gantt chart is to organize tasks and their durations into hierarchies and milestones, providing a visual representation of a project's schedule.
It helps in tracking and managing project progress, allocating resources efficiently, and ensuring tasks are completed within their specified timeframes.
A load/Gantt chart is a popular project management tool that displays project tasks as horizontal bars against a timeline. Its purpose is to provide a visual representation of the project schedule, allowing project managers and team members to track progress, manage dependencies, and allocate resources effectively.
By organizing tasks into hierarchies and milestones, the chart helps identify critical path activities and ensures that tasks are completed in the proper sequence. It also aids in identifying potential bottlenecks or resource conflicts, allowing project managers to balance workloads and prevent over or underutilization of team members.
Additionally, the chart helps communicate project timelines and milestones to stakeholders, promoting transparency and facilitating effective project coordination.
To know more about Gantt chart click here: brainly.com/question/32932207
#SPJ11
Question: What is the purpose of a load/Gantt chart?
Group of answer choices
To differentiate between parallel and sequential tasks
To ensure team members are not over or under utilized
To calculate the total duration of a project
To organize tasks and their duration into hierarchies and milestones
Blade Inc. is planning to issue new bonds. The bonds will carry an 10% coupon rate (paid annually) and will have 20 years until maturity. Investors buying the bonds will pay $975. The investment bank helping float the issue will keep $50 per bond. Blade Is in the 40% tax bracket. Which of the following is closest to Blade's pre-tax cost of borrowing?
- 9.72%
- 10.00%
- 10.94%
- 11.08%
Blade Inc.'s pre-tax cost of borrowing is approximately 10.00%.
To determine Blade Inc.'s pre-tax cost of borrowing, we need to consider the coupon rate, the price paid by investors, and the underwriting fee.
1. Calculate the annual interest payment: 10% of the face value ($1,000) = $100.
2. Calculate the after-tax cost of the underwriting fee: $50 * (1 - 40%) = $30.
3. Calculate the total cost of borrowing: price paid by investors ($975) + after-tax underwriting fee ($30) = $1,005.
4. Calculate the pre-tax cost of borrowing: annual interest payment ($100) / total cost of borrowing ($1,005) = 9.95%.
Therefore, the closest option to Blade Inc.'s pre-tax cost of borrowing is 9.95%, which is closest to 10.00%.
To know more about pre-tax,
https://brainly.com/question/32136101#
#SPJ11
Explain why a futures contract can be used for either speculation or hedging.
Futures contracts can be used for speculation to profit from price movements or for hedging to manage and reduce risk.
A futures contract is a financial agreement between two parties to buy or sell an asset at a predetermined price and date in the future. It can be used for both speculation and hedging purposes.
Speculation refers to the act of betting on the future price movement of an asset to make a profit. In this case, traders buy or sell futures contracts without intending to actually take delivery of the underlying asset. They are simply seeking to profit from the price fluctuations. By using futures contracts, speculators can leverage their positions and potentially earn higher returns.
Hedging, on the other hand, is a risk management strategy used to protect against adverse price movements. For example, if a farmer is worried about a decline in crop prices, they can enter into a futures contract to sell their produce at a predetermined price. This way, they are protecting themselves from potential losses if prices do indeed fall. Similarly, businesses can use futures contracts to hedge against fluctuations in currency exchange rates or commodity prices.
In summary, futures contracts can be used for speculation to profit from price movements or for hedging to manage and reduce risk.
Learn more about profit
https://brainly.com/question/32864864?referrer=searchResults
#SPJ11
A line of air conditioners is advertised as using a mean of 725 watts of power with a standard deviation of 50 watts. A rival company tests 12 of the units and finds a mean of 700 watts. Assuming a normal distribution, construct and interpret the 97% confidence interval for the population mean
The 97% confidence interval for the population mean power usage of the air conditioners is approximately (665.93, 734.07) watts. We can be 97% confident that the true population means falls within this range.
To construct a 97% confidence interval for the population mean power usage of the air conditioners, we'll use the sample mean provided by the rival company (700 watts) and the known standard deviation (50 watts) of the population.
The formula for the confidence interval is given by:
Confidence Interval = sample mean ± (critical value * standard deviation / square root of sample size)
Since the sample size is 12, and we want a 97% confidence interval, we need to find the critical value corresponding to that confidence level. Looking up the critical value in a standard normal distribution table, we find it to be approximately 2.17.
Plugging the values into the formula:
Confidence Interval = 700 ± (2.17 * 50 / √12)
Calculating this expression:
Confidence Interval ≈ 700 ± (2.17 * 50 / 3.464)
Confidence Interval ≈ 700 ± 34.07
Therefore, the 97% confidence interval for the population means power usage of the air conditioners is approximately (665.93, 734.07) watts.
This means that we can be 97% confident that the true population means power usage falls within this range. Based on the data, the rival company's tested air conditioners have an average power usage between 665.93 and 734.07 watts.
To learn more about confidence interval
https://brainly.com/question/15712887
#SPJ8
What is the marginal product of taber? QUESTION 52 To open a new business, a manager must obtain a license from the city for $20,000. The license is transferable, but enly $3,000 is refundable in the event the firm does not use the license. What is the firm's fixed cost?
Marginal product refers to the additional output that is produced when one additional unit of input is added while keeping other inputs constant. The marginal product of Taber is 5. Fixed costs, also known as overhead costs, are expenses that do not vary with the level of production or sales volume in the short run. The fixed cost of the firm is $20,000.
The given question is divided into two parts. Below is the answer to both parts:
Part 1: Marginal Product of Taber The marginal product of Taber refers to the additional output generated by employing one additional unit of a factor of production while holding all other factors constant. Taber's marginal product is calculated by subtracting the total production of n-1 factors from the total production of n factors.
The formula for marginal product is given as: MP_n = TP_n - TP_{n-1}
Where, MPn = marginal product of nth input,
TPn = total product of n inputs, and
TPn-1 = total product of n-1 inputs
Therefore, the marginal product of Taber can be calculated as follows:
Marginal product of Taber = TP3 - TP2= 40 - 35 = 5
Part 2: Fixed Cost of the firm Fixed costs are the expenses that do not vary with the quantity of output produced. It is the cost incurred by a business even if the business is inactive and produces no output. In the given scenario, the license obtained by the manager is a fixed cost. Therefore, the fixed cost of the firm is $20,000.
To know more about Marginal product visit :
https://brainly.com/question/31050533
#SPJ11
Ajax Inc. just issued a dividend of $2.34. Investor analysis suggests that the company dividend will grow based on its historical average over the past 6 years. If you require a return of 12.4% per year, what price are you willing to pay for this stock assuming it follows the constant growth dividend model?
2013: $2
2014: $2.06
2015: $2.13
2016: $2.20
2017: $2.27
2018: $2.34
Answer choices are below
A.$16.93
B.$29.26
C.$35.11
D.$20.32
E.$24.38
The maximum price you should be willing to pay for Ajax Inc. stock is $24.38. If we pay more than $24.38, we are likely to lose money on the investment.
The constant growth dividend model (DDM) is a method of valuing stocks that pays a constant dividend. The model assumes that the stock's dividend will grow at a constant rate forever. The formula for the DDM is:
P = D / (r - g)
where:
* P is the price of the stock
* D is the next dividend payment
* r is the required rate of return
* g is the dividend growth rate
In this case, the next dividend payment is $2.34, the required rate of return is 12.4%, and the dividend growth rate is 6%. Plugging these values into the formula, we get:
P = 2.34 / (0.124 - 0.06) = 24.38
Therefore, the maximum price you should be willing to pay for Ajax Inc. stock is $24.38.
* The required rate of return is the minimum return that an investor expects to receive from an investment. It is typically higher for stocks that are more risky.
* The dividend growth rate is the rate at which the company's dividend is expected to grow. It is typically lower for mature companies than for growth companies.
By using the DDM, we can get a fair value estimate for Ajax Inc. stock. The price of $24.38 is the maximum price that we should be willing to pay for the stock, given our required rate of return and the dividend growth rate.
Learn more about rate of return here; brainly.com/question/17164328
#SPJ11
A school acquires an item of equipment that was not of a specialised nature. In accordance with IPSAS 13 'Leases' it is recognised as a finance lease, but there is no certainty that the school (as the lessee) will obtain ownership of the equipment by the end of the lease term. Depreciation of the equipment should be spread over:The term of the lease The useful life of the equipment
The shorter of the term of the lease or the useful life of the equipment
A period consistent with similar owned items of equipment
Depreciation of the equipment should be spread over: The shorter of the term of the lease or the useful life of the equipment.
When a school acquires an item of equipment that is recognized as a finance lease according to IPSAS 13 'Leases,' the depreciation of the equipment should be spread over the shorter of the term of the lease or the useful life of the equipment.
The term of the lease refers to the contractual period during which the school has the right to use the equipment. On the other hand, the useful life of the equipment represents the estimated period over which the equipment is expected to generate economic benefits for the school.
In this scenario, if there is uncertainty regarding the school's ability to obtain ownership of the equipment by the end of the lease term, the depreciation should still be calculated based on the shorter of the lease term or the useful life of the equipment. This approach ensures that the depreciation expense reflects the period during which the school effectively benefits from the equipment's usage.
By spreading the depreciation over the shorter of the two durations, the school appropriately matches the recognition of the equipment's cost against the periods when it is expected to contribute value to the school's operations. This treatment ensures consistency in the accounting treatment of similar owned items of equipment and aligns with the principle of prudence in financial reporting.
To learn more about Depreciation refer here:
https://brainly.com/question/30531944#
#SPJ11
Which of the following is NOT correct with regard to costs? A. Economic costs exceed accounting costs if implicit costs equal zero. B. Accounting costs include explicit costs only C. Implicit costs are those opportunity costs which are not reflected in monetary payments. D. Economic costs equal the sum of explicit costs and implicit costs. E. Explicit costs are the monetary payments for the factors of production bought or hired by the
The statement that is NOT correct with regard to costs is: B. Accounting costs include explicit costs only.
Accounting costs include both explicit costs and implicit costs. Explicit costs are the monetary payments for the factors of production bought or hired by the firm. Implicit costs, on the other hand, are the opportunity costs that are not reflected in monetary payments. Economic costs, which include both explicit and implicit costs, will exceed accounting costs if the implicit costs are not zero.
Explicit costs are normal business costs that appear in a company’s general ledger and directly affect its profitability. They have clearly defined dollar amounts that flow through to the income statement. Examples of explicit costs include wages, lease payments, utilities, raw materials, and other direct costs.
Therefore, statement B is incorrect.
Learn more about Accounting costs at
brainly.com/question/30720189
#SPJ11
What is the cost of an investment that will produce cash flows of $250 at the end of the next 5 years, then an extra lump sum payment of $500 at the end of the 5th year at an interest rate of 5%? using BA II calculator
The NPV calculated using the BA II calculator will give you the cost of the investment. Please note that without the exact timings of the cash flows, it is not possible to calculate the exact cost. However, the BA II calculator will give you an approximate value.
The cost of an investment can be calculated using the BA II calculator. Here are the steps to determine the cost of the investment:
1. Enter the cash flows into the calculator. In this case, we have cash flows of $250 at the end of each of the next 5 years, and an additional lump sum payment of $500 at the end of the 5th year.
2. Set the interest rate on the calculator to 5%. This is the interest rate at which the cash flows are discounted.
3. Calculate the net present value (NPV) of the cash flows. The NPV represents the present value of the investment.
4. The NPV calculated using the BA II calculator is the cost of the investment.
To calculate the NPV using the BA II calculator, follow these steps:
1. Press the CF (cash flow) button on the calculator.
2. Enter the cash flows in the following order: -$250, -$250, -$250, -$250, -$250, $500.
3. Press the NPV (net present value) button.
4. Enter the interest rate of 5% by pressing the % button followed by 5 and then the Enter button.
5. Press the CPT (compute) button to calculate the NPV.
The NPV calculated using the BA II calculator will give you the cost of the investment. Please note that without the exact timings of the cash flows, it is not possible to calculate the exact cost. However, the BA II calculator will give you an approximate value.
learn more about investment on :
https://brainly.com/question/29547577
#SPJ11
Which of the following must be true for two assets with the same fundamental characteristics (e.g. same payment stream, same credit risk, etc.) to command different prices in the market? Select all that apply. A. Arbitrageurs must have limited capital B. Trick question - the Law of One Price guarantees they will always be the same price C. Some market participants must have systematically biased expectations about one of the assets D. The two assets must not be fungible
The following statements must be true for two assets with the same fundamental characteristics to command different prices in the market:
C) Some market participants must have systematically biased expectations about one of the assets and
D) The two assets must not be fungible.
C) Some market participants must have systematically biased expectations about one of the assets: If some market participants have biased expectations about one of the assets, it can lead to differences in their perceived value and therefore result in different prices in the market. These biases can be based on various factors, such as information asymmetry or subjective beliefs.
D) The two assets must not be fungible: Fungibility refers to the interchangeable nature of assets, where one unit of an asset can be substituted for another unit of the same asset. If the two assets are not fungible, it means they have unique characteristics or restrictions that differentiate them. These differences can affect their supply and demand dynamics, leading to different prices.
Learn more about market here:
https://brainly.com/question/14418904
#SPJ11
Vaniteux's Returns (B). Spencer Grant is a New York-based investor. He has been closely following his investment in 500 shares of Vaniteux, a French firm that went public in February 2010. When he purchased his 500 shares at €17.08 per share, the euro was trading at $1.3581/€. Currently, the share is trading at €28.26 per share, and the dollar has fallen to $1.4073/€. Spencer considers selling his shares at this time but chooses not to sell them after all. He waits, expecting the share price to rise further after the announcement of quarterly earnings. His expectations are correct, and the share price rises to €31.55 per share after the announcement. The current spot exchange rate is $1.3017/€. a. If Spencer sells his shares today, what percentage change in the share price would he receive? b. What is the percentage change in the value of the euro versus the dollar over this same period? c. What would be the total return Spencer would earn on his shares if he sold them at these rates?
(a) If Spencer sells his shares today, he would receive a 84.77% increase in the share price.
(b) The percentage change in the value of the euro versus the dollar over this period is -4.14%.
(c) If Spencer sells his shares at the current rates, he would earn a total return of 74.96% on his investment.
a. To calculate the percentage change in the share price, we need to compare the current share price to the original purchase price.
Original purchase price: 500 shares * €17.08/share = €8,540
Current share price: 500 shares * €31.55/share = €15,775
Percentage change in share price = ((Current share price - Original purchase price) / Original purchase price) * 100
= ((€15,775 - €8,540) / €8,540) * 100
= 84.77%
Therefore, if Spencer sells his shares today, he would receive a 84.77% increase in the share price.
b. To calculate the percentage change in the value of the euro versus the dollar, we need to compare the current exchange rate to the original exchange rate.
Original exchange rate: $1.3581/€
Current exchange rate: $1.3017/€
Percentage change in the value of the euro versus the dollar = ((Current exchange rate - Original exchange rate) / Original exchange rate) * 100
= (($1.3017 - $1.3581) / $1.3581) * 100
= -4.14%
Therefore, the percentage change in the value of the euro versus the dollar over this period is -4.14%.
c. To calculate the total return Spencer would earn on his shares, we need to consider the change in share price and the change in the value of the euro versus the dollar.
Original investment value: 500 shares * €17.08/share * $1.3581/€ = $11,545.53
Current investment value: 500 shares * €31.55/share * $1.3017/€ = $20,192.60
Total return = (Current investment value - Original investment value) / Original investment value * 100
= ($20,192.60 - $11,545.53) / $11,545.53 * 100
= 74.96%
Therefore, if Spencer sells his shares at the current rates, he would earn a total return of 74.96% on his investment.
Know more about share price:
https://brainly.com/question/31470248
#SPJ11
g If the United States has a trade deficit, this means that Group of answer choices The U.S. economy produces more than it consumes. Exports exceed imports. Trade activity is limited to just a few goods. The trade balance is negative.
If the United States has a trade deficit, it means that exports exceed imports. In other words, the value of goods and services that the U.S. sells to other countries is less than the value of goods and services that the U.S. buys from other countries. This leads to a negative trade balance.
A trade deficit can occur for various reasons, such as a higher demand for foreign goods, a lower demand for domestic goods, or currency exchange rates. It is important to note that a trade deficit does not necessarily mean that the U.S. economy produces more than it consumes or that trade activity is limited to just a few goods.
Learn more about trade deficit from the given link:
https://brainly.com/question/33080717
#SPJ11
Suppose you pay back $ 675 on a $ 625 loan you had for 105 days. What was your simple annual interest rate? State your result to the nearest hundredth of a percent.
The simple annual interest rate for the loan is approximately 32.83%, rounded to the nearest hundredth of a percent.
To calculate the simple annual interest rate, we can use the formula:
Interest = Principal * Rate * Time
Given:
Principal (loan amount) = $625
Amount paid back = $675
Time = 105 days
First, let's calculate the interest paid on the loan:
Interest = Amount paid back - Principal
Interest = $675 - $625
Interest = $50
Next, let's convert the time from days to years:
Time in years = Time in days / 365
Time in years = 105 days / 365
Time in years ≈ 0.2877
Now, we can calculate the interest rate using the formula:
Rate = Interest / (Principal * Time)
Rate = $50 / ($625 * 0.2877)
Calculating this, the simple annual interest rate is approximately 32.83%.
Therefore, The simple annual interest rate for the loan is approximately 32.83%, rounded to the nearest hundredth of a percent.
Learn more about Principal here:
https://brainly.com/question/30163719
#SPJ11
You are considering how to invest part of your retirement savings. You have decided to put $600,000 into three stocks:
51% of the money in GoldFinger (currently $24/share), 7% of the money in Moosehead (currently $71/share), and the remainder in Venture Associates (currently $9/share). Suppose Gold Fing
stock goes up to $36/share, Moosehead stock drops to $58/share, and Venture Associates stock rises to $10 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
a. What is the new value of the portfolio?
The new value of the portfolio is $ 773310. (Round to the nearest dollar.)
b. What return did the portfolio earn?
The portfolio earned a return of 28.89%. (Round to two decimal places.)
c. If you don't buy or sell any shares after the price change, what are your new portfolio weights?
The weight of Goldfinger is now %. (Round to two decimal places.)
The new portfolio weights, without buying or selling any shares after the price change, are approximately 50.66% for GoldFinger, 6.96% for Moosehead, and 42.38% for Venture Associates.
a. the new value of the portfolio is $773,310.
b. the portfolio earned a return of 28.89%.
c. the new portfolio weights, without buying or selling any shares after the price change, are as follows:- goldfinger: 50.66%
- moosehead: 6.96%- venture associates: 42.38%
a. to calculate the new value of the portfolio, we need to multiply the number of shares owned by their respective prices and sum them up. let's calculate it:
goldfinger: (0.51 * $36/share) * $600,000 = $183,600moosehead: (0.07 * $58/share) * $600,000 = $243,600
venture associates: (0.42 * $10/share) * $600,000 = $346,110
total new portfolio value: $183,600 + $243,600 + $346,110 = $773,310
b. to calculate the portfolio return, we need to compare the initial value of the portfolio with the new value and determine the percentage change:
initial portfolio value: $600,000new portfolio value: $773,310
return = ((new value - initial value) / initial value) * 100
return = (($773,310 - $600,000) / $600,000) * 100return ≈ 28.89%
c. to find the new portfolio weights, we divide the value of each stock by the new portfolio value and multiply by 100 to get a percentage:
goldfinger weight = ($183,600 / $773,310) * 100 ≈ 50.66%
moosehead weight = ($243,600 / $773,310) * 100 ≈ 6.96%venture associates weight = ($346,110 / $773,310) * 100 ≈ 42.38% 66% for goldfinger, 6.96% for moosehead, and 42.38% for venture associates.
Learn more about stock here:
https://brainly.com/question/31940696
#SPJ11
. What is the difference between general obligation bonds and revenue bonds? ( LG 6-2) 14. What is a callable bond? Is a call provision more or less attractive to a bond holder than a noncallable bond? (LG 6-2)
General obligation bonds are those bonds where the repayment of the principal and interest is backed by the full faith and credit of the issuer and its taxing power, while revenue bonds are those bonds where the repayment of the principal and interest is backed by the cash flows generated by the underlying project.
The issuer of general obligation bonds usually promises to levy taxes to repay the bondholders in the event that the cash flows from other sources are insufficient to meet the obligations. General obligation bonds are usually issued to finance public facilities like schools, roads, and water systems.
Revenue bonds, on the other hand, are those bonds where the repayment of the principal and interest is backed by the cash flows generated by the underlying project. Revenue bonds are usually issued to finance revenue-generating facilities like airports, hospitals, and toll roads. The issuer of revenue bonds usually promises to use the revenues generated by the underlying project to repay the bondholders.
Callable bonds are bonds that give the issuer the right to call back the bond before its maturity date. A callable bond usually has a call price that is higher than the bond's face value. The issuer of a callable bond usually calls back the bond when the interest rates in the market have fallen, thereby enabling the issuer to borrow at a lower rate. A call provision is less attractive to a bond holder than a noncallable bond.
To learn more about General obligation visit.
https://brainly.com/question/32156465
#SPJ11
How long will it take $1577 to accumulate to $ 1785 at 7%
p.a. compounded Quartely? State your answer in years and months
(from 0 to 11 months).
To accumulate the amount of $1577 to $1785 at 7% p.a. compounded Quarterly, it will take approximately 7 months and 10 days.
Let's use the following formula to solve the problem: A=P(1+r/n)^(nt)
Here, P = 1577, A = 1785, r = 7% = 0.07, n = 4 (Quarterly)
To find out the time it takes to accumulate the amount, we need to find the value of t. The formula can be rewritten as t=log(A/P)/log(1+r/n)By substituting the values, we get t = log(1785/1577)/log(1+(0.07/4))t = 7.33 months (approximately)
Therefore, it will take approximately 7 months and 10 days for $1577 to accumulate to $1785 at 7% p.a. compounded Quarterly
To know more about compound visit:
brainly.com/question/26457073
#SPJ11
The difference between Gross Domestic Product (GDP) of Italy and Gross National Income (GNI) of Italy will be equal to
A The Savings level of the Italian economy
B The Exports level of the Italian economy
C. The interest payments made by Italy to foreign holders of Italian bonds
D The difference between what foreign residents of Italy earn in Italy and what Italian residents earn from their activities outside of Italy
The difference between Gross Domestic Product (GDP) of Italy and Gross National Income (GNI) of Italy will be equal D. to the difference between what foreign residents of Italy earn in Italy and what Italian residents earn from their activities outside of Italy.
Gross Domestic Product (GDP) refers to the total value of all goods and services produced within a country's borders during a specific period, regardless of whether the production is done by residents or non-residents. It provides a measure of the economic activity within the country's territorial boundaries.
On the other hand, Gross National Income (GNI) takes into account not only the domestic production but also the income earned by the residents of the country, regardless of whether it is generated domestically or abroad.
GNI includes the income earned by residents from their activities in other countries and subtracts the income earned by foreign residents within the country.
So, when we calculate the difference between the GDP of Italy and the GNI of Italy, we are essentially comparing the income earned by foreign residents in Italy (which contributes to the GDP) and the income earned by Italian residents from their activities outside of Italy (which contributes to the GNI).
To learn more about domestic, refer below:
https://brainly.com/question/31361440
#SPJ11
Dmitri lives in Detroit and operates a small company selling drones. On average, he receives $702,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $402,000. He also pays several utility companies, as well as his employees wages totaling $279,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $8,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Dmitri does not operate the drone business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $8,000 per year rate. There are no other costs faced by Dmitri in running this drone company
Dmitri's economic profit from operating the drone business is $13,000 per year. In the given scenario, Dmitri's economic profit is positive, indicating that his drone business is generating additional income beyond what he could earn in alternative employment.
Total Revenue: $702,000
Explicit Costs:
- Wholesale cost: $402,000
- Utility expenses + wages: $279,000
Opportunity Costs:
- Foregone rental income: $8,000
- Foregone salary as a programmer: $20,000
Calculating the economic profit:
Total Revenue - (Explicit Costs + Opportunity Costs)
$702,000 - ($402,000 + $279,000 + $8,000 + $20,000) = $13,000
Therefore, Dmitri's economic profit from operating the drone business is $13,000 per year.
This suggests that operating the business is a profitable venture for Dmitri. However, it's important to note that economic profit does not consider all costs, such as the cost of capital and the owner's labor. Additionally, this analysis assumes that the rental income and salary as a programmer are the only feasible alternative uses for Dmitri's resources. Evaluating the long-term sustainability and profitability of the drone business would require considering factors such as market competition, future demand for drones, and potential changes in costs and revenues.
To learn more about economic profit : brainly.com/question/13716014
#SPJ11
Bend Xis noncallable and has 20 years to maturity, a 10% annual coupon, and 3,000 pur value. Your required return an bond 19%; if you buy it, you plan to hold it for s Years You (and the market) have expectations that in 5 years, the yield to maturity on a 35-year bond with similar tak will be 9.5% How much should you be willing to pay f bond X today? (Hint: You will need to know how much the bond will be worth at the and o years. Do not round intermediate calculations.
The present values of the coupon payments and the present value of the par value to get the total present value of the bond.
To calculate how much you should be willing to pay for bond X today, you need to determine its present value. The present value can be calculated by discounting the future cash flows of the bond using your required return.
First, let's calculate the future cash flows of the bond. The bond has a 20-year maturity, a 10% annual coupon, and a $3,000 par value. This means that you will receive a $300 coupon payment every year for 20 years, and you will also receive the $3,000 par value at the end of the 20 years.
Next, let's calculate the present value of these cash flows. We'll discount the cash flows using your required return of 19%. To do this, we'll use the formula for the present value of a bond:
Present Value = (Coupon Payment / (1 + Required Return)^Time) + (Par Value / (1 + Required Return)^Time)
For the coupon payments, we'll discount each payment separately using the required return and the time until the payment. For the par value, we'll discount it using the required return and the time until the end of the bond's maturity.
Finally, we'll sum up the present values of the coupon payments and the present value of the par value to get the total present value of the bond. This will be the amount you should be willing to pay for bond X today.
To know more about present values, visit:
https://brainly.com/question/28304447
#SPJ11
How COVID-19 has affected the IT Industry in Bangladesh? Use
economic concepts such as demand, supply, elasticity, and graphs in
explaining your answer.
The COVID-19 pandemic has affected the IT industry in Bangladesh in several ways. In this answer, we will explain how it has affected demand and supply in the IT industry, as well as its elasticity and the resulting impact on the industry's graphs.
Demand
The demand for IT services has increased significantly as businesses and individuals alike turned to digital platforms to meet their needs while adhering to social distancing guidelines. Online education, remote working, and telemedicine have all become more popular as a result of the pandemic. The demand for IT products and services has increased, as a result, resulting in the growth of the IT industry. The increase in demand is shown by the rightward shift in the demand curve.
Supply
The supply of IT products and services has also been affected by the COVID-19 pandemic. The supply chain of IT hardware and software has been disrupted due to border closures, leading to a decrease in the supply of these products. The supply of IT services has also been affected, with many firms struggling to provide services as their employees were not prepared for remote working. The decrease in supply is shown by the leftward shift in the supply curve.
Elasticity
The elasticity of the IT industry in Bangladesh has also been affected by the COVID-19 pandemic. IT products and services are relatively inelastic, meaning that a change in price does not significantly affect demand. However, the pandemic has caused a significant increase in demand for IT services, which has resulted in an increase in price. The resulting impact on the industry's elasticity is that it has become more elastic.
In conclusion, the COVID-19 pandemic has affected the IT industry in Bangladesh in several ways. While demand has increased, the supply has decreased, leading to an increase in prices. The industry has also become more elastic as a result of the pandemic.
Learn more about the supply curve: https://brainly.com/question/14925184
#SPJ11
You are considering a safe investment opportunity that requires a $1,170 investment today, and will pay $790 two years from now and another $540 five years from now. a. What is the IRR of this investment? b. If you are choosing between this investment and putting your money in a safe bank account that pays an EAR of 5% per year for any horizon, can you make the decision by simply comparing this EAR with the IRR of the investment? Explain.
The Internal Rate of Return (IRR) of this investment is approximately 7.72%.
a. To calculate the Internal Rate of Return (IRR) of this investment, we need to find the discount rate that equates the present value of the cash inflows to the initial investment. In this case, the cash inflows are $790 in two years and $540 in five years.
Using the IRR formula, we set up the equation:
$1,170 = $790 / (1 + IRR)^2 + $540 / (1 + IRR)^5
Simplifying the equation, we get:
$1,170 = $790 / (1 + IRR)^2 + $540 / (1 + IRR)^5
We can solve this equation using trial and error, or by using financial calculators or Excel. The Internal Rate of Return of this investment is approximately 7.72%.
b. To compare the investment with a safe bank account that pays an Effective Annual Rate (EAR) of 5% per year, we need to consider the time horizon. The IRR of the investment represents the rate of return over the entire investment period. However, the EAR of the bank account represents the rate of return for each year.
To make an informed decision, we need to compare the IRR of the investment with the EAR of the bank account over the same time horizon. If the IRR is higher than the EAR, the investment would be more profitable. If the IRR is lower than the EAR, the bank account would be the better option.
Therefore, you cannot simply compare the EAR with the IRR to make a decision because they represent different time periods. You need to consider the time horizon and compare the rates of return over the same time frame to make an informed decision.
Learn more about Internal Rate of Return from the below link:
https://brainly.com/question/13373396
#SPJ11
