Using these data from the comparative balance sheet of K. Leen Company, perform vertical analysis.
December 31, 2020 December 31, 2019
Amount Percentage Amount Percentage
Accounts Receivable $400,000 $400,000
Inventory 864,000 600,000
Total Assets 3,200,000 3,000,000
Answer and Explanation:
The vertical analysis is presented below:
Comparative Balance Sheet
Particulars Dec 31, 2020 Percentage Dec 31, 2019 Percentage
(a) [(a) ÷ $3200000] × 100 (b) [(b) ÷ $3000000] ×100
Accounts
receivables $400,000 12.5% $400,000 13.3%
Inventory $864,000 27.0% $600,000 20.0%
Total Assets $3,200,000 100.0% $3,000,000 100.0%
Citizen suits allow an individual to do all of the following except _____.
bring a lawsuit against a company or business for violating an environmental regulation
prevent the citizen from bringing a lawsuit against the Environmental Protection Agency (EPA)
force the party in violation of the law to pay civil penalties
force the party in violation of the law to comply with it
Answer:
Citizen suits allow an individual to do all of the following except __prevent the citizen from bringing a lawsuit against the Environmental Protection Agency (EPA)___.
Answer:
prevent the citizen from bringing a lawsuit against the Environmental Protection Agency (EPA)
Explanation:
i got it right
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a videocassette recorder made by the company over the past 12 months are satisfied with their products. If there are 4 different types of videocassette recorders made by the company, the best strategy would be to use a
Answer:
b. stratified random sample.
Explanation:
In Stratified random sampling, it divides the overall population into same type of groups that we called as strata. In this the random samples would be chosen from each and every stratum.
Since the videocassette recorded would be purchased over the past 12 months, and there is different types of videocassette records
So here the best strategy would be stratified random sample
How do worker organizations influence wages?
A. They require workers to have more education.
B. They fight for higher pay for workers.
C. They enforce regulations raising the minimum wage.
O
D. They lower the market value of workers.
SUBMIT
what are types of government
Poodle Corporation was organized on January 3, 2018. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2018, Poodle had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is total paid-in capital at the end of 2018? Group of answer choices $420,000. $320,000. $370,000. $470,000.
Answer:
$370,000
Explanation:
Calculation to determine total paid-in capital at the end of 2018
Using this formula
2018 Ending total paid-in capital =(Shares of Common stock*per Shares)+ (Shares of common stock*per Shares)
Let plug in the formula
2018 Ending total paid-in capital=(30,000 × $7) + (20,000 × $8)
2018 Ending total paid-in capital=$210,000+$160,000
2018 Ending total paid-in capital= $370,000
Therefore total paid-in capital at the end of 2018 is $370,000
2. Discuss innovation as an entrepreneurial trait and the role of innovation in Wow Momo's
success.
Batteries, Offshore Wind Lead Clean Energy Cost Cuts As Renewables by Mike Scott Batteries, Offshore Wind Lead Clean Energy Cost Cuts As Renewables Continue To Undercut Coal And Gas Batteries can store energy from solar or wind farms for use when the wind is not blowing or the sun is not shining. The transition to a low-carbon energy system is a few steps closer after two technologies that were immature and hugely expensive only a few years ago saw spectacular gains in cost-competitiveness in the last year. New research from Bloomberg NEF (BNEF) shows that the cost of lithium-ion batteries has fallen by 35% over the past year to $187/MWh, while the cost of offshore wind is almost a quarter (24%) lower than this time 12 months ago.
Meanwhile, the costs of installing the more established technologies of onshore wind and photovoltaic (PV) solar also continued to fall. The levelized cost of energy for onshore wind projects starting construction at the start of this year was $50/MWh, 10% lower than a year ago, while solar projects are 18% cheaper at 57/MWh.
Elena Giannakopoulou, head of energy economics at BNEF, commented: "Looking back over this decade, there have been staggering improvements in the cost-competitiveness of these low-carbon options, thanks to technology innovation, economies of scale, stiff price competition and manufacturing experience.
"Our analysis shows that the LCOE per megawatt-hour for onshore wind, solar PV and offshore wind have fallen by 49%, 84% and 56% respectively since jobs that coal-and gas-fired power stations and nuclear, currently do.
Battery energy storage co-located with solar and wind farms are starting to be competitive with coal and gas power, even without subsidies, in providing "dispatchable power" that can be delivered when it is needed, rather than only at the time it is being generated when the wind is blowing or the sun is shining. Battery storage can provide back-up power for renewable projects for anything from one to four hours at a time, BNEF says. Tifenn Brandily, energy economics analyst at BNEF, said: "Solar PV and onshore wind have won the race to be the cheapest sources of new 'bulk generation' in most countries, but the encroachment of clean technologies is now going well beyond that, threatening the balancing role that gas-fired plant operators, in particular, have been hoping to play." The advance of offshore wind is also hugely significant, because the technology has long been seen as an expensive generation option in the near term compared to onshore wind or solar PV, although it was hoped that in time the possibility of using bigger turbines and floating platforms, coupled with the stronger and steadier winds at sea would lead to sharp cost reductions. But those costs have come down much more quickly than forecast thanks to technological advances, larger turbines and auction programs for new capacity - offshore wind is now below $100/MWh globally, with some European projects coming in well below that, compared to more than $220 just five years ago. Siemens Gamesa has just announced its 10MW turbines will be used in the world's first subsidy-free offshore wind project, Vattenfall's Hollandse Kust Zuid 1 & 2 scheme. "The low prices promised by offshore wind tenders throughout Europe are now materializing, with several high-profile projects reaching financial close in recent months. Its cost decline in the last six months is the sharpest we have seen for any technology,"Giannakopoulou said.
What type of cost are batteries for the renewable-energy industry?
A. explicit cost.
B. variable cost.
C. implicit cost.
D. fixed cost.
E. marginal cost.
Answer: A. Explicit cost.
D. Fixed cost
Explanation:
The type of cost which batteries are for the renewable-energy industry is explicit cost and fixed cost. Explicit costs refers to the business costs which appear in the general ledger. It should be noted that they've direct impact on the company's profit. Examples include utilities, raw materials, salaries, lease payments, etc.
When running a business, explicit cost is the direct payment that's made to others, such as rent, wage and materials. Batteries are an explicit cost as they're incurrIn the industry of renewable energy, batteries are used to save the energy produced and thus the cost of batteries are incurred in the daily production. Hence, it is an explicit cost since it's incurred for daily production.
Fixed costs are those costs that doesn't vary with the production level. Since the energy produced has to be stored in batteries, then it is a fixed cost as it doesn't vary with the production level.
QUICK IM BEING TIMED!! AND PLS NO LINKS!!
Using the MyFico.com website (learn about scores), research what is in My Score and produce a poster or presentation on how a FICO score breaks down and what that means to the consumer.
Answer:
What? i dont understand
Explanation:
Which of the following statements represents a correct and sequentially accurate economic explanation? a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward. b. If investment increases, total expenditures on goods and services falls, and the AD curve shifts leftward. c. If consumption falls, total expenditures on goods and services falls, and the AD curve shifts rightward. d. If consumption falls, total expenditures on goods and services rises, and the AD curve shifts leftward.
Answer:
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
Explanation:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.
The statement that represents a correct and sequentially accurate economic explanation is:
a. If net exports rise, total expenditures on goods and services rises, and the AD curve shifts rightward.
The following information should be considered:
Some of the factors that can cause the AD curve to shift rightward are increased consumer spending, declining marginal propensity to save, and an expansionary monetary and fiscal policy. Increased consumer spending can be brought about by increased net exports, which increase the propensity to spend. Declining marginal propensity to save increases the marginal propensity to spend, and this causes the AD curve to shift rightward. When government, through its monetary and fiscal policies, makes more money available, the AD curve shifts rightward, with an increased demand for goods and services.Learn more: brainly.com/question/16911495
In 2021, internal auditors discovered that Fay, Inc., had debited an expense account for the $2,635,000 cost of a machine purchased on January 1, 2018. The machine's useful life was expected to be 17 years with no residual value. Straight-line depreciation is used by Fay. The journal entry to correct the error will include a credit to accumulated depreciation of: Multiple Choice $155,000. $2,635,000. $465,000. $310,000.
Answer:
$155,000
Explanation:
Given the information above,
Depreciation charge (straight line) = (Cost - Residual value) ÷ Estimated useful life
Therefore,
2021 Depreciation charge = ($2,635,000 - $0) ÷ 17
= $155,000
The journal entry to correct the error will include a credit to accumulated depreciation of $155,000
The personnel director for Electronics Associates developed the following estimated regression equation relating an employee's score on a job satisfaction test to his or her length of service and wage rate.
= 14.4 - 8.69x1 + 13.5x2
where
x1 = length of service (years)
x2 = wage rate (dollars)
y = job satisfaction test score (higher scores indicate greater job satisfaction)
a. Interpret the coefficients in this estimated regression equation.
b. Predict the job satisfaction test score for an employee who has four years of service and makes $13.00 per hour.
Answer:
a-1. An increase in the length of service (years) by one year will lead to a reduction in the job satisfaction test score by 8.69.
a-2. An increase in the wage rate (dollars) by $1 will lead to an increase in the job satisfaction test score by 13.5.
b. The predicted score of the job satisfaction test for the employee is 155.14.
Explanation:
a. Interpret the coefficients in this estimated regression equation.
a-1. Interpretation of the coefficient of x1
From the estimated regression equation, the coefficient of x1 is -8.69. Since the coefficient of x1 is negative, it implies that an increase in the length of service (years) by one year will lead to a reduction in the job satisfaction test score by 8.69.
a-2. Interpretation of the coefficient of x2
From the estimated regression equation, the coefficient of x2 is 13.5. Since the coefficient of x2 is positive, it implies that an increase in the wage rate (dollars) by $1 will lead to an increase in the job satisfaction test score by 13.5.
b. Predict the job satisfaction test score for an employee who has four years of service and makes $13.00 per hour.
Given:
y = 14.4 - 8.69x1 + 13.5x2 ………………… (1)
where
x1 = length of service (years) = 4
x2 = wage rate (dollars) = $13
y = job satisfaction test score = ?
Substituting the values into equation (1), we have:
y = 14.4 - (8.69 * 4) + (13.5 * 13)
y = 155.14
Therefore, the predicted score of the job satisfaction test for the employee is 155.14.
what are examples of body language
Answer:
Biting nails, putting your hands on your cheek, touching your nose, rolling eyes, and this list is endless.
Explanation:
Body language is something everybody uses every day. It is a type of nonverbal communication in which physical behavior is used to express or convey. Most people use it if they don't want to express themselves in words.
5. A neighborhood sportswear store sells a pair of Nike sneakers for $40. Due to the recent fitness craze, these shoes are in high demand: 50 pairs of shoes are sold per week. The ordering cost is $20/order, and the annual holding cost is 20 percent of selling price. If the store operates 52 weeks a year, what can you say about the current lot size of 235
Answer: Too large
Explanation:
Thw following information can be gotten from the question:
d = 50 pairs per week
S = ordering cost = $20 per order
H = holding cost = 20% × $40 = $8
n = 52 weeks
D = Annual demand = 50 × 52 = 2600
We'll then calculate the economic order quantity which will be:
= ✓2DS/H
= ✓2×2600×20/8
= ✓13000
= 114 units
Therefore, the current lot size of 235 is too large
Seidman Company manufactures and sells 20,000 units of product X per month. Each unit of product X sells for $17 and has a contribution margin of $8. If product X is discontinued, $45,000 in fixed monthly overhead costs would be eliminated and there would be no effect on the sales volume of Seidman Company's other products. If product X is discontinued, Seidman Company's monthly income before taxes should:
Answer:
Effect on income= $115,000 decrease
Explanation:
Giving the following information:
Fixed costs= $45,000
Number of units= 20,000
Unitary contribution margin= $8
To calculate the effect on income, we need to use the following formula:
Effect on income= decrease in fixed costs - decrease in contribution margin
Effect on income= 45,000 - 20,000*8
Effect on income= $115,000 decrease
Year 1 2 3 4 5 Free Cash Flow $22 million $26 million $29 million $30 million $32 million General Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of % per year. If the weighted average cost of capital is % and General Industries has cash of million, debt of million, and 80 million shares outstanding, what is General Industries' expected current share price?
Answer:
$7.78
Explanation:
Calculation to determine what is General Industriesʹ expected current share price
First step is to calculate the FCF6
FCF6 = $32 million × (1 + 0.05)
FCF6= $33.6 million
Second step is to calculate the V5
V5 = $33.6 million / (0.09 - 0.05)
V5= $840 million
Third step is to calculate V0 using financial calculator
V0 = 652.45 million
Now let calculate expected current share price
P0 = $(652.45 + 15 - 45) million / 80 million
P0 = $7.78
Therefore General Industriesʹ expected current share price is $7.78
Which of the following statements about goods and services is TRUE?
a.
The demand for services is independent of time.
b.
A service encounter can consist of one or more moments of truth.
c.
A good example of a nondurable good is furniture.
d.
A durable good is a product that typically lasts for less than three years.
Answer:
B
Explanation:
A nondurable good is a product that typically lasts for less than three years. An example is food.
A durable good is a product that typically lasts for more than three years. An example is furniture, laptop.
The demand for services is dependent on time. After a period, the service may no longer be needed. For example, consider the demand for the services of a firefighter when a building is on fire. the demand for the firefighters is only needed for the duration that the building is on fire. After the fire has been put out, there would be no need for firefighters
Jones Company developed the following static budget at the beginning of the company's accounting period: Revenue (8,000 units) $ 16,000 Variable costs 4,000 Contribution margin $ 12,000 Fixed costs 4,000 Net income $ 8,000 If actual production totals 8,200 units, the flexible budget would show total costs of:
Answer:
the total cost in the flexible budget is $8,100
Explanation:
The computation of the total cost in the flexible budget is shown below;
Variable cost per unit is
= $4000 ÷ 8,000 units
= 0.50 per unit
The total cost for the flexible budget is
= Variable costs+ fixed costs
= 0.5 × 8,200 units + $4,000
= $4,100 + $4,000
= $8,100
Hence, the total cost in the flexible budget is $8,100
Under its executive stock option plan, W Corporation granted options on January 1, 2018, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures are anticipated. The options are exercised on April 2, 2021, when the market price is $21 per share. By what amount will W's shareholder's equity be increased when the options are exercised? Group of answer choices $315 million. $60 million. $270 million. $330 million.
Answer:
$315 million
Explanation:
Calculation to determine what amount will W's shareholder's equity be increased when the options are exercised
(millions)
Cash $270
($18 exercise price x 15 million shares)
Paid-in capital – stock options (account balance)$60
(4*$15million shares)
Less Common stock $15
(15 million shares at $1 par per share)
Paid-in capital—excess of par (remainder)$315
Therefore The amount that W's shareholder's equity will be increased when the options are exercised is $315 million
What is a sole proprietor?
O A. A person who starts any new business
B. A person who runs a business in which he or she is the only
employee
C. A business structure that protects the owner from lawsuits
O D. Two people who start up a business together
Answer:
B. A person who runs a business in which he or she is the only
employee
A person who runs a business in which he or she is the only employee is a sole proprietor. The correct option is (B).
What do you understand by the sole proprietorship?A sole proprietorship is a type of company or group that is owned, controlled, and run by a single person who also bears all the risks and is the only one to benefit from any gains or losses.
Typically, these companies offer specialty services like hair salons, spas, or tiny retail stores.
A single proprietor is allowed to choose whatever they want. They wouldn't need to ask others for approval, so the choice would be quick.
Being the sole proprietor of the company enables him or her to maintain the privacy and confidentiality of all business information
Therefore, a person who runs a business in which he or she is the only employee is a sole proprietor.
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Looking forward to next year, if Digby’s current cash amount is $17,478 (000) and cash flows from operations next period are unchanged from this period and Digby takes ONLY the following actions relating to cash flows from investing and financing activities:
Issues $2,000 (000) of long-term debt
Pays $4,000 (000) in dividends
Retires $10,000 (000) in debt
Which of the following activities will expose Digby to the most risk of needing an emergency loan?
a. Purchases assets at a cost of $25,000 (000)
b. Sells $10,000 (000) of their long-term assets
c. Liquidates the entire inventory
d. Pays a $5.00 per share dividend
Answer:
d
Explanation:
Purchases assets at a cost of $15,000 (000)
Repurchases $10,000 (000) of stock
Issues 100 (000) shares of common stock
Sells $7,000 (000) of long-term assets
Giorgio Italian Market bought $6,600 worth of merchandise from Food Suppliers and signed a 90-day, 8% promissory note for the $6,600. Food Supplier's journal entry to record the collection on the maturity date is: (Use 360 days a year.) Multiple Choice Debit Cash $6,732; credit Notes Receivable $6,732 Debit Notes Receivable $6,600; credit Cash $6,600 Debit Cash $6,600; debit Interest Receivable $132; credit Sales $6,732
Answer:
Debit Cash $6,732; Credit Interest Revenue $132; Credit Notes Receivable $6,600
Explanation:
Based on the information given the appropiate journal entry to record the collection on the maturity date is:
Debit Cash $6,732
Credit Interest Revenue $132
Credit Notes Receivable $6,600
Calculated as:
Interest = $6,600 × 0.08 × 90/360
Interest= $132
Maturity Value = $6,600 + $132
Maturity Value = $6,732
Grant Corporation is looking to purchase a building costing $1,300,000 by paying $500,000 cash on the purchase date, and agreeing to make payments every quarter for the next five years. The first payment is due three months after the purchase date. Grant's borrowing rate for this transaction is 8% (this is an annual interest rate). Required: Calculate how much each of the payments should be.
Answer:
Grant Corporation
The payments should be $42,133.16 every quarter.
Explanation:
a) Data and Calculations:
Building cost = $1,300,000
Down payment = $500,000
Interest rate = 8% per year
Payment terms = quarter for 5 years
From an online calculator, the payments should be:
N (# of periods) 20
I/Y (Interest per year) 2
PV (Present Value) 800000
FV (Future Value) 0
Results
PMT = $42,133.16
Sum of all periodic payments $842,663.23
Total Interest $42,663.23
Stockton Company Adjusted Trial Balance December 31 Cash 6,175 Accounts Receivable 2,278 Prepaid Expenses 694 Equipment 14,639 Accumulated Depreciation 2,479 Accounts Payable 1,546 Notes Payable 4,744 Common Stock 1,000 Retained Earnings 12,765 Dividends 969 Fees Earned 6,312 Wages Expense 2,622 Rent Expense 708 Utilities Expense 449 Depreciation Expense 262 Miscellaneous Expense 50 Totals 28,846 28,846 Determine the total assets.
Answer:
$26,265
Explanation:
Assets are economic resources controlled by the entity from which future economic benefits are expected to flow into the entity.
Total Assets Calculation
Cash $6,175
Accounts Receivable $2,278
Prepaid Expenses $694
Equipment $14,639
Accumulated Depreciation ($2,479)
Total $26,265
Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).
2022 2021
Cash $13,200 $10,800
Accounts receivable 22,200 20,200
Inventory 31,600 30,700
Other current assets 12,200 11,909
Total current assets $79,200 $73,609
Total current liabilities $247,500 $311,100
Compute the current ratio for each year.
Answer:
this answer might be rong
Explanation:
it just might be rong
Mar. 2 Issued 5,000 shares of $6 par value common stock to attorneys in payment of a bill for $35,600 for services performed in helping the company to incorporate.
June 12 Issued 61,900 shares of $6 par value common stock for cash of $440,900.
July 11 Issued 2,075 shares of $120 par value preferred stock for cash at $140 per share.
Nov. 28 Purchased 1,600 shares of treasury stock for $82,500.
Required:
Journalize all the transactions.
Answer:
Mar. 2
Debit : Attorney Expense $35,600
Credit : Common Stock (5,000 shares x $6) $30,000
Credit : Paid In Excess of Par $5,600
June 12
Debit : Cash $440,900
Credit : Common Stock (61,900 shares x $6) $371,400
Credit : Paid In Excess of Par $69,500
July 11
Debit : Cash (2,075 shares x $140) $290,500
Credit : Preferred Stock (2,075 shares x $120) $249,000
Credit : Paid in excess of par (2,075 shares x $20) $ 41,500
Nov. 28
Debit : Treasury Stock $82,500
Credit : Cash $82,500
Explanation:
With par value shares, we have a reserve called Paid in excess of par. This reserve serves to accommodate all payments made above the par values of shares issued.
Discuss how work plays part in the work situation?
Answer:
Why is work important?
The status of work in contemporary societies is the result of a long historical process. It is not only an indispensable means of enhancing individual senses of usefulness and belonging, but also of providing financial means. Work is also central in several other dimensions, namely in its role as a socialising mechanism, as a source of social exchanges, and individual identities. Thus, work can be seen as the pillar of social organisation, but also, to a large extent, as an important pillar of the existential organisation of individuals. It is a fundamental feature in many dimensions of social integration, such as health, housing, and interpersonal networks. Hence, the relevance of Work Integration Programmes (WIP) aimed at improving the condition of vulnerable groups.
Let's summarise the importance of work both at the individual and the societal level:
For individuals, work is an important feature in structuring: personal and social identity; family and social bonds; ways of making money, and thereby accessing a number of essential and non-essential goods, services and activities; daily routines; level of activity; physical and mental well-being; self-confidence and self-esteem; a sense of self-worth provided by the feeling of contributing to society or the common good
For societies, work is an important feature in: promoting community cohesion and safety; increasing civic participation; reducing public spending in a range of welfare benefits (provided, of course, that work is performed in a decently paid job); promoting social and economic development; organising social life at a macro level
When success in these dimensions is challenged WIPs become more important. The relevance of WIPs is made even more acute when both macro and microstructural conditions create obstacles to the positive role of work. These must be carefully considered:
Macrostructural conditions: the current European crisis, reflected in the rise of unemployment and job precariousness; the transformation of work ethics that has been going on over the past few decades: as jobs become increasingly precarious, subject to sudden change or elimination, individuals have a decreased sense of security, commitment and loyalty towards their jobs and each other (see: Public Policy).
Microstructural conditions: work is not, by itself, synonym with integration. Indeed, precarious, unappealing, dangerous, low-paid and low-status jobs relegate individuals to the margins of society.
Yet, despite these current conditions, work is still a central piece in our societies, and a crucial factor in the social integration of vulnerable groups.
A player in a game theoretic model is: a. anyone working for a firm that is operating strategically b. a firm that is operating as a perfect competitor c. a decision-making entity at a firm involved in a strategic game d. a monopolist who produces a unique product with no close substitutes e. a stockholder at a firm involved in a strategic game
Answer: c. a decision-making entity at a firm involved in a strategic game
Explanation:
In a theoretical game, there are two players that have to embark on different strategies such that they make the maximum payoff. This maximum payoff strategy is known as the dominant strategy.
These two players are the decision making entities in the firms that are competing in the game because they are the ones that decide how the firm should react and what strategy to use. For instance, the owners of the two bakeries down the street are the players because they control what either bakery will do.
Suppose an economy has two industries producing corn (c) and tractor (t). The production functions for the two industries are.
Yc = min (Lc/2, Kc/1) and Yt = min (Lt/2.5, Kt/3),
where Li and Ki are the amount of labor and capital used in industry i (i = c, t). Constraints for labor and capital endowments are given as follows:
Lc + Lt ≤ 63 and Kc + Kt ≤ 42.
Derive the production transformation curve and show the output vector (Yc, Yt) that corresponds to full employment of both factors? (10 marks)
What range of output price ratio (Pc/Pt) is consistent with the full employment of both factors simultaneously? (10 marks)
Answer:
The answer would be y/b
Explanation:
Its really simple
Select the true statement about interest rate risk. It stems from the fact that bond prices and market interest rates are inversely correlated. It is the risk that a bond's coupon payment will fall if market interest rates fall. Interest rate risk is particularly problematic for investors who do not wish to sell their bonds. Shorter-term bonds are more sensitive to interest rate risk than longer-term bonds.
Answer:
The correct answer is the first option: It stems from the fact that bond prices and market interest rates are inversely correlated.
Explanation:
To begin with, the term known as "Interest Rate Risk" refers to the number that specifically shows the relation that exists between an investment that is planning to take place and another investment that is already having place, meaning that it focus on the potential for investment losses that result from a change in interest rates. Therefore that, in the field of microeconomics, it is understood that it will reflex the fact that when the interest goes up the price of actual investments like bond will go down and that is why it stems from the fact that bond prices and market interest rates are inversely correlated.