suppose a firm operates in the short run at a price above its average total cost of production. in the long run the firm should expect

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Answer 1

Priced over its typical total cost of production in the short term. Long-term, the company should prepare for the entry of new competitors. falling market value and declining profits

To what performance are you alluding?

Producing anything involves assembling it from components or raw resources. To put it another way, manufacturing employs inputs to produce a thing or product that has value for a consumer or end-user—an output that is acceptable for consumption.

What are production and examples?

It simply refers to a process of production or its result in its most basic form. Economists refer to producers as businesses that generate goods and services. These companies manufacture products that they sell to customers.

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which of the following are procedures that should be included when offboarding (ending a relationship with) an employee? (select two.)

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Get the worker to sign a formal letter of resignation so you have it on file. Set up a final interview: Prior to their departure, schedule a meeting with the employee to get their thoughts on the business, their job, and their reasons for leaving.

Does resignation imply resignation as well?

In most cases, quitting a job is equivalent to resigning from it because you have made the decision not to continue in that position. Resignation is more appropriate in official settings, yet resigning is equally acceptable in serious writing.

Can I leave now and resign?"

The majority of U.S. states permit at-will employment, which means that a worker may quit at any time and without cause. There are a few exceptions, though. The volume of notice required from workers covered by an employment agreement may be specified in the agreement.

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in the case of a monopoly, the firm maximizes profits at a point where the marginal revenue significantly exceeds the marginal cost.

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When a monopoly exists, the corporation maximize profits when the marginal revenue vastly outweighs the marginal expense.

How does a monopolist determine price?

By analyzing the marginal revenue and marginal costs of producing an extra unit, a monopolist can determine its profit-maximizing price and quantity. If the firm's marginal revenue exceeds its marginal cost, it should produce an extra unit. The monopoly could seek the most profitable level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing output as long as marginal revenue exceeds marginal cost or reducing output as long as marginal cost exceeds marginal revenue. This Profit Maximization procedure works without the requirement to calculate total revenue and total expense. As a result, a profit-maximizing monopoly should produce up to the quantity where marginal income equals marginal cost.

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Economic growth can be illustrated with the use of a production possibilities curve:

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Answer:

Economic growth is the process of increasing the economy's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources. This process can be illustrated as an outward shift of the production possibilities curve.

a market in which securities are bought and sold. a market in which securities are bought and sold. open choices for matching no answer a fund in which a company sets aside money to enable it to repay bonds on the bond's maturity date. a fund in which a company sets aside money to enable it to repay bonds on the bond's maturity date. open choices for matching no answer securities that represent equity ownership in a corporation. securities that represent equity ownership in a corporation. open choices for matching no answer a banker who deals primarily in underwriting new secu

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Securities exchanges are markets where securities are bought and sold.

The security market is a segment of the larger financial market where securities can be purchased and sold between economic entities based on supply and demand. Stock, bond, and derivatives markets are all examples of security markets where prices can be established and players, both professional and non-professional, can interact.

Primary markets, where new securities are issued, and secondary markets, where existing assets can be purchased and sold, are the two tiers of the securities markets. Secondary markets can be further divided into over-the-counter and organized exchanges like stock exchanges, where different parties come together and transact directly in securities.

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TRUE OR FALSE research evidence suggests that punishment results in more positive outcomes if the recipient perceives it to be fair.

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The statement is true: Research evidence suggests that punishment results in more positive outcomes if the recipient perceives it to be fair.

Any fact, detail, or piece of data offered by a research study is considered research evidence. Any form of research study using any type of research methodology may be used to produce the proof.

Research evidence may originate from solitary research projects (primary research) or from reviews that compile and evaluate the evidence from numerous studies on a single subject (secondary research).

This relies on the decision or question you need to decide on.

The best research should be of the highest caliber and relevant to your patient or patient group.

To assist clinicians and researchers in finding the most likely best evidence rapidly, a variety of "evidence hierarchies" have traditionally been constructed within the context of evidence-based medicine. Particularly those who consider randomised controlled trials to always be the gold standard have criticized them.

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in a conventional interest rate swap agreement, the swap buyer agrees to make a number of floating-rate interest rate payments to the swap seller. t/f

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In a conventional interest rate swap agreement, the swap buyer commits to paying the swap seller a series of floating-rate interest rate payments. This assertion is untrue.

What is an agreement for an interest rate swap?

A contract for an interest rate swap is made by two parties, also known as "counterparties." illustrates how the counterparties' agreement to exchange payments based on a specified principal amount over a predetermined time period.

What traits do interest rate swaps have?

An agreement to exchange (swap) interest payment streams with different characteristics but denominated in the same currency is known as an interest rate swap. The agreed-upon amount of notional principal is used to calculate the interest payments, although this amount is never really traded.

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while acting as a fiduciary you recommend that your client buy a particular brand of refueling station to

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Your client now is furious that you received this commission and never told her about it. Yes, you owe your client $200.

Yes, as a result of illegal gains. You give the $200 to your client. You're fine if you told your client about it and they agreed. Gains that have been obtained dishonestly or illegally are referred to as ill-gotten gains.

However, many politicians have spread their ill-gotten fortunes across a number of nations.

A person who maintains a legal or moral relationship of trust with one or more other parties is known as a fiduciary (person or group of persons). A fiduciary typically manages money or other assets for another individual in a responsible manner.

One party serves in a fiduciary position for another party, such as a corporate trust business or the trust department of a bank, if the other party, for instance, has entrusted the fiduciary with cash for safekeeping or investment. 

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Correct question:

While acting as a fiduciary, you recommended that your client buy a particular brand of refueling station to charge her new, electric car because she would be able to save 70% of the purchase price of the home refueling station through a combination of tax credits and rebates. You were correct, and the client achieved these savings. However, you did not tell the client that you were receiving a $200 commission from the manufacturer of that particular refueling station brand. Your client now is furious that you received this commission and never told her about it. Do you owe your client $200?

When a consumer notices a new product in a store because of the point-of-purchase display, reads about the attributes of the product and recalls an unresolved problem that this product will solve, and then purchases the product, _____ has occurredlimited

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A consumer is a person or a group that is not directly involved in entrepreneurial or business operations and who intends to order or uses purchased items, products, or services primarily for personal, social,

family, or household needs. The phrase is most frequently used to describe someone who makes purchases for their own use. A consumer in an economy purchases goods or services primarily for personal use rather than for resale or for commercial objectives. For goods or services, customers must pay money (or an equivalent). ([4]) Next, eat (use up). As a result, consumers are an essential component of any economy and play a crucial role in the economic system of a capitalist society[5]. [6] [7] [8] Without consumer demand, one of the primary incentives for producers to produce would be absent:

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tyree loves the lifestyle associated with being a salesperson, which allows him to take a day off during the week and make it up on the weekend. he most likely values the blank associated with creating his own schedule.
A. structure
B. role playing
C. flexibility
D. selling team approach
E. compensation
Answer: C. flexibility
Because salespeople largely set their own schedules, the job carries with it a fair amount of flexibility.

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C) Flexibility He probably values the blank that comes with setting his own schedule. The work requires some degree of adaptability due to the fact that salespeople typically set their own schedules.

What factors contribute to your success in sales?

A good salesperson has more to offer customers than just an exciting pitch. They are enthusiastic, resilient individuals who take the time to learn about their customers' needs, demonstrate empathy, and confidently sell a product.

Why deals abilities are significant?

I gained skills in effective listening and communication through sales skills. These skills in sales can be used in my personal and professional relationships. I've learned how to build long-term relationships and guide others to see the building blocks of a decision from sales.

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budgeted sales for the 2nd quarter operations are shown in the following table: sales april may june cash sales $ 500 sales on account $ 800 the company expects a 25% increase in sales per month for may and june. the amount of sales revenues that would appear on the company's 2nd quarter pro forma income statement would be

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If sales april may june cash sales $ 500.The pro forma income statement would be  $4,956.25.

What is income statement?

Income statement help to show the income and expenditure of a company at a particular period of time.

April Sales = (500+800

April sales = 1300

May Sales =1300 × 1.25

May Sales = 1625

June Sales =1625 ×1.25

June Sales = 2,031.25

Pro forma income statement =1300 + 1625 + 2,031.25

Pro forma income statement = $4,956.25

Therefore the pro forma income statement is $4,956.25.

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you provide desktop support for a small company. the company has two locations in the same city, but they are several miles away. you get a call from an employee who is having problems with an application. he tries to describe what he is doing in the application, but you just can't understand what might be causing the problem. which of the following is the best way to provide the assistance the employee needs? (select two.)

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Establish a Remote Assistance connection and watch what the user is doing is the best way to provide the assistance the employee needs.

Remote Assistance refers to a connection this is meant to offer technical support from a distance. on this mode, a user who's sitting at his or her pc can invite a technician to look what is occurring on the display screen remotely.Examples include document switch, far off print, , session recording, display sharing, and more. by being able to remotely get entry to a device to provide support, IT assist groups, assist desks, and controlled carrier vendors can clear up aid tickets faster.

far off get admission to solutions could leave you vulnerable. in case you don't have right safety answers in place, far off connections should act as a gateway for cybercriminals to access your devices and data. Hackers should use far laptop protocol (RDP) to remotely get entry to home windows computer systems particularly.

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what can you do to effectively navigate a panel interview? check all that apply. maintain eye contact with the questioner as well as with others. prepare basic biographical information about each interviewer. target all your answers toward the person on the panel who would be your supervisor. talk to the human resources representative. make sure you meet with two or more interviewers on a one-on-one basis.

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You can do the following to effectively navigate the panel interview, maintain eye contact with the questioner as well as with others, prepare basic biographical information about each interviewer, make sure you meet with two or more interviewers on a one-on-one basis.

What is Interview?

Interview is the meeting that is occurred to judge a person's skill and personality, the interview may be one to one or a panel interview.

In a panel interview it is recommended to have an eye contact with the person who asks a question and with others, this eye contact shows the confidence of the interviewee. Also the profile of interviewers can be read before the interview so that the likes and dislikes and known and the answer to questions can be accordingly.

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if annual overhead costs are expected to be $800,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs: group of answer choices $1.25 is the predetermined overhead rate. for every dollar of manufacturing overhead, 80 cents of direct labor will be assigned. for every dollar of direct labor, 80 cents of manufacturing overhead will be assigned. a predetermined overhead rate cannot be determined.

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The given question is incomplete therefore I am giving general answer based on my knowledge. For every dollar of direct labour costs, $0.80 of overhead will be assigned. for every dollar of overhead costs, $1.25 of direct labour will be assigned.

A predetermined overhead rate cannot be determined because the activity base (direct labour costs) and the total overhead costs are the only information given. To calculate the predetermined overhead rate, you would need to know the total estimated activity level (measured in direct labour hours).

The overhead rate is the proportion of a company's indirect expenditures, such as rent and other administrative expenses, to its direct costs, sales, or other inputs, like machine hours. It gives business owners and managers an idea of indirect costs in comparison to, say, its direct manufacturing or gross sales costs.

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question 12 scenario 2, continued the community garden grand opening was a success. in addition to the 55 donors food justice rock springs invited, 20 other prospects attended the event. now, tayen wants to know more about the donations that came in from new prospects compared to the original donors. this sql query can be used to identify the percentage of contributions from prospects compared to total donors

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The section of a SQL query that will calculate the percentage of contributions from prospects is (Total_prospects / Total_donors * 100) AS Prospects_Percent. Hence, option (a) will be relevant.

Give a brief account on SQL.

For handling data stored in a relational database management system (RDBMS) or for stream processing in a RDSMS , the computer language known as Structured Query Language, or simply SQL, was developed. When dealing with structured data, which includes relationships between entities and variables, it is especially helpful.

Over earlier read-write APIs like ISAM or VSAM, SQL has two key advantages. It initially proposed the concept of performing multiple records' access with a single command. Second, it does away with the necessity to indicate whether or not an index is used to locate a record.

A data query language (DQL), [a] a data definition language (DDL), [b] a data control language (DCL), and [c] a data manipulation language are among the various sorts of statements that make up the originally relational algebra and tuple relational calculus-based SQL (DML).  Data definition (schema construction and modification), data access control, data query, and data manipulation (insert, update, and delete) are all included in the scope of SQL. Despite the fact that SQL is primarily a declarative language (4GL), it also contains procedural components.

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The complete question is mentioned below :

The community garden grand opening was a success. In addition to the 55 donors Food Justice Rock Springs invited, 20 other prospects attended the event. Now, Tayen wants to know more about the donations that came in from new prospects compared to the original donors.

What is the section of a SQL query that will calculate the percentage of contributions from prospects?

(Total_prospects / Total_donors * 100) AS Prospects_Percent

(Total _prospects", "Total_ donors" * 100) AS Prospects_Percent

(Total prospects * Total donor / 100) AS Prospects_Percent

(Total prospects + Total donor = 100) AS Prospects_Percent

at a pure monopolist's profit-maximizing output (qm), its _______ exceeds marginal cost, resulting in allocative inefficiency.

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At a pure monopolist's profit-maximizing output (qm), its price exceeds marginal cost, resulting in allocative inefficiency.

An economic term known as "allocative efficiency" refers to effectiveness at the social or societal level. It refers to generating an output in an amount where the marginal benefit to society of an additional unit just balances out the marginal cost. In a perfect competitive environment, each firm was required to create the amount of production where P = MC in order to maximize profits. The marginal cost (MC) measures how much it costs society to generate more units of production, whereas the price (P), which reflects demand, measures how much consumers value the good.

Allocative efficiency is ensured by abiding by this rule. If P > MC, then more units should be produced since the marginal benefit to society (measured by P) exceeds the marginal cost to society of generating extra units. However, in a monopoly situation, pricing is always higher than marginal cost at the output level that maximizes profits.

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quantity of labormp of labormrp of laborquantity of capitalmp of capitalmrp of capital 115$4518$24 212362618 39273515 46184412 539539 613626 refer to the given data. if the prices of labor and capital are $9 and $15, respectively, and labor and capital are the only inputs, the firm's economic profits will be group of answer choices $82. $102. $67. $28.

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As per the information provided, we can compute that the firm's economic profit from the group of answer choices will be b) $102.

To determine an organization's economic profitability, deduct the total cost of production from the total income. You must multiply the quantity of each input by its price, then add the resulting sums to determine the total cost of production.

The difference between sales income and an organization's explicit production expenses, including any opportunity costs, is known as an economic profit. Opportunity costs are a class of hidden expenses that are decided by management and change depending on various events and viewpoints.

In this instance, $115 + $4518 + $212 + $3626 + $39 + $2735 + $46 + $1844 + $53 + $95 + $39 + $26 = $12937 is the overall cost of manufacture. Since the total income is unknown, economic profits cannot be determined.

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The minimum return that must be earned on a project in order to leave the firm's value unchanged is the compound rate. the cost of capital. the interest rate. the internal rate ot return.

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The minimum return that must be earned on a project in order to leave the firm's value unchanged is the cost of capital.

The company will use this minimum return to maintain its current operations without making any adjustments, such as laying off staff or selling part of its assets.

When adopting the net present value approach, the discount rate is calculated using the cost of capital. If the project's net present value is positive, it is acceptable since its rate of return outweighs its cost of capital.

The discount rate is the interest rate that is used to determine the present value of future cash flows in a discounted cash flow (DCF) analysis. This makes it easier to assess whether future cash flows from a project or investment will be worth more than the capital outlay needed to fund it now.

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yosemite bike corp. manufactures mountain bikes and distributes them through retail outlets in california, oregon, and washington. yosemite bike has declared the following annual dividends over a six-year period ended december 31 of each year: 20y1, $24,000; 20y2, $10,000; 20y3, $121,000; 20y4, $95,000; 20y5, $120,000; and 20y6, $140,000. during the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $90 par, and 100,000 shares of common stock, $4 par.

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The dividends payable amount with the cash value of  16900 in our earnings account is 135200.

Earnings Account means that a segregated account established and maintained by the shielder for the aim of receiving any Securities Loan Fee paid by Borrowers in reference to Securities loans hereinafter.

Dividends payable is that the quantity of the when tax profit a corporation has formally licensed to distribute to its shareholders, however has not nevertheless paid in money. In accounting, dividends collectable could be a liability on the company's record. It's a current liability account that reports the amounts of money dividends that are declared by the board of administrators however not nevertheless distributed to the stockholders.

The question is incomplete, find the complete question here

yosemite bike corp. manufactures mountain bikes and distributes them through retail outlets in california, oregon, and washington. yosemite bike has declared the following annual dividends over a six-year period ended december 31 of each year: 20y1, $24,000; 20y2, $10,000; 20y3, $121,000; 20y4, $95,000; 20y5, $120,000; and 20y6, $140,000. during the entire period, the outstanding stock of the company was composed of 25,000 shares of cumulative preferred 2% stock, $90 par, and 100,000 shares of common stock, $4 par. Required: Determine the  dividends payable account with the cash value of  16900 in our earnings account.

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Happy Lion Manufacturing Inc. is considering issuing a new 25-year debt issue that would pay an annual coupon payment of $90. Each bond in the issue would carry a $1,000 par value and would be expected to be sold for a price equal to its par value. Happy Lion's CFO has pointed out that the firm would incur a flotation cost of 2% when initially issuing the bond issue. Remember, the flotation costs will be subtracted from the proceeds the firm will receive after issuing its new bonds. The firm's marginal federal-plus-state tax rate is 35%. To see the effect of flotation costs on Happy Lion's after-tax cost of debt (generic), calculate the after-tax cost of the firm's debt issue with and without its flotation costs, and select the correct after-tax costs from the following boxes. After-tax cost of debt without flotation cost: After-tax cost of debt with flotation cost: This is the cost of new debt, and it is different from the average cost of capital raised in the past.

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Average cost strongly influences how businesses decide to price their goods. Sales of specific commodities by businesses are directly correlated with the size of the relevant market and the strategies

adopted by competitors. With cost on the vertical axis and quantity on the horizontal axis, an average cost curve may be drawn. These graphs frequently include display marginal costs, which are the costs of the last unit produced at each point and, in the short run, indicate the slope of the variable cost curve (and hence the first derivative of variable cost). Because fixed costs are all incurred prior to any production, and marginal costs are only incurred as production proceeds, the average cost curve typically has a U-shape.

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cure's product manager is under pressure to increase market share, but is uncertain about how to make the product more competitive. the product is reasonably well-positioned in the thrift segment and enjoys relatively high awareness and accessibility. which of the following would most likely result in a quick increase in market share?

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Lower the unit selling price to the bottom limit of the segment price range is the most likely result in quick increase in market share.

Market share is the portion of total sales in an industry or market that a specific business generates over a predetermined period of time.

The company's sales for the time period are divided by the total sales for the sector for that time period to determine market share.

This metric is employed to provide a basic understanding of a company's size in relation to its market and rivals.

A corporation that has the largest market share and normally exercises the most influence in its sector is considered a market leader.

Implementing innovative technologies, cultivating client loyalty, and acquiring rivals are all strategies for boosting market share.

The percentage of total revenues that a company generates relative to the market or sector in which it competes is known as market share. Select the time period you wish to look at before beginning to calculate a company's market share. A fiscal year, year, or a number of years may be involved.

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you are in charge of making sure the it systems of your company survive in case of any type of disaster in any of your locations. your document should include organizational charts, phone lists, and order of restore. each business unit should write their own policies and procedures with guidelines from corporate management. which of the following documents should you create for this purpose?

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You are in charge of making sure it systems of your company survive in case of any type of disaster in any of your locations. your document should include a Business continuity plan.

Business continuity may be outlined as "the capability of a corporation to continue the delivery of product or services at pre-defined acceptable levels following an unquiet incident", and business continuity designing (or business continuity and resiliency planning) is that the method of making systems of hindrance and recovery to alter potential threats to a company.

In addition to prevention, the goal is to change in progress operations before and through the execution of disaster recovery. Business continuity is the meant outcome of the correct execution of each business continuity planning and disaster recovery. Several business continuity standards have been revealed by varied standards bodies to help control listing ongoing planning tasks. An organization's resistance to failure is "the ability ... to face up to changes in its atmosphere and still function".

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suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 2 percent, the current inflation rate is 4 percent, and real gdp is 2 percent above potential real gdp. if the weights for the inflation gap and the output gap are both 1/2, then according to the taylor rule the federal funds target rate equals

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The federal funds target rate is equivalent to 8% based on the Taylor rule. The federal funds rate is determined by the FOMC, or Federal Open Markets Committee.

used to regulate overnight lending among American banks; also known as the federal funds target rate or the federal funds rate. It has been set as a range between two limits, upper and lower. This is how it goes: Customers make deposits at banks, and those deposits give the banks the funding they need to offer their clients loans and other forms of credit. To assist ensure their stability and solvency, regulators mandate that banks and other depository institutions maintain a specific portion of their total capital in reserve. The amount of capital that banks have varies day to day as a result of deposits being added and subtracted as well as loans being granted and repaid. This implies that they likewise have fluctuating reserve needs.

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The industry-low, industry-average, and industry-high cost benchmarking data on pp. 6-7 of each issue of the Footwear Industry Report

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The managers of your firm should always pay close attention to each issue of the Footwear Industry Report.

because, when the standards for one single or multiple measures show that your company(s) results was excessively out of line and just about definitely impeded you service quality, your leadership team would be prudent to seek corrective measures in the following selection round.

The importance of the footwear market

First of all and foremost, it's possible to classify footwear as a fundamental requirement, just behind commodities like nourishment, lodging, and apparel in terms of importance. Second, the production of footwear involves steps that necessitate a fair amount of labor, which greatly increases the amount of jobs created.

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A reverse repurchase agreement, or "reverse repo," is the purchase of securities with the agreement to sell them at a higher price at a specific future date. A reverse repo refers to the buyer side of a repurchase agreement (RP), or repo. These transactions, which often occur between two banks, are essentially collateralized loans. The difference between the original purchase price and the buyback price, along with the timing of the transaction (often overnight), equates to interest paid by the seller to the buyer. The reverse repo is the final step in the repurchase agreement, closing the contract.
1
For example, let's say Bank ABC currently has excess cash reserves, and it is looking to put some of that money to work. Meanwhile, Bank XYZ is facing a reserve shortfall and needs a temporary cash boost. Bank ABC may enter a reverse repo agreement with Bank XYZ, agreeing to buy securities and hold them overnight before selling them back for a slight profit. From the perspective of Bank XYZ, which sells the securities and agrees to buy them back at a premium the next day, the transaction is a repurchase agreement.
Notably, Federal Reserve Bank RRPs and repos are labeled based on the viewpoint of the counterparty, not the Fed's viewpoint. In other words, when it comes to dealing with the U.S. central bank, a reverse repo agreement means that the Fed's Open Market Trading Desk sells securities to a counterparty and agrees to buy them back later at a higher price.
2

Answers

The rate of interest at which the central bank (in India, the RBI) short-term borrows money from commercial banks is referred to as the reverse repo rate. Having a ready supply of cash available when needed is beneficial for the central bank.

It is a reverse repurchase agreement in the eyes of the party selling the security with the intent to repurchase it. It is a repurchase agreement to the party purchasing the securities and consenting to sell it back.A transaction in which the Desk sells a security to an eligible counterparty with an agreement to repurchase that same security at a set price at a given period in the future is known as a reverse repurchase agreement, commonly known as a "reverse repo" or "RRP." With all other factors staying the same, a rise in the reverse repo rate will result in a fall in the money supply and vice versa.

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Stock dividends on common stock should be recorded at their fair value by the investor when the related investment is accounted for under which of the following methods?
Cost/Equity
a. Yes Yes
b Yes No
c No Yes
d No No
Choice 'd" is correct, No - No.
Rule: Stock dividends and stock splits are not considered income to the recipient.Therefore, investors do not record stock dividends at fair value. They simply reallocate the investment account balance (under either method -- cost or equity) over more shares so that value per share decreases.

Answers

Option d is correct. Stock dividends on common stock should be recorded at their fair value by the investor when the related investment is accounted for under No-No methods.

Stock dividends are not regarded as income by the recipient. Investors don't report stock dividends at fair value as a result. In order to reduce the value per share, they merely reallocate the investment account balance (using either the cost or equity technique) over additional shares.

A stock dividend is a dividend payment that is delivered to shareholders in shares as opposed to cash. The benefit of the stock dividend is that it rewards shareholders without dipping into the company's cash reserves.

The majority of these stock distributions are made as fractions paid per outstanding share. If a business distributes a 5% stock dividend, it must give existing shareholders 0.05 shares for every share they currently own. Five extra shares would be added to the 100-share owner's ownership.

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A mutual fund wishes to hedge its $500,000 face value bond portfolio, currently priced at 96-00 (32nds). The bond portfolio has a duration of 11 5 years It will hedge with T-bond futures ($100,000 free) priced at 99-08 (32nds) and have a duration of 8.6 years. Ir price changes in the spot market exactly match those in the futures market, how many contracts are needed to hedge? Should the contracts be bought sold? 6; sold 6; bought 7; sold 7; bought 8; bought

Answers

Six contracts are required to hedge a mutual fund's investment of bonds with a $500,000 face value, according to the question.

The definition of a mutual fund:

A managed fund is a collection of funds that is professionally managed by a money manager. A charity that distributes money in stocks, bonds, money market instruments, and/or other assets after collecting funds from a group of participants who have similar investing goals.

Briefing:

Bond interest rates and prices go hand in hand. Bond prices decrease when interest rates increase. Bonds serve also as underlying asset for bond futures, which results in falling bond futures prices. Bond futures must be traded in order to protect the bond fund against rising interest rates. This is so that the earnings from the futures contracts will more than compensate for the losses made upon that bond holdings.

Number many contracts to sell is determined by dividing the trade value of the portfolio by its length by the market value of the futures contract.

Number of contracts to sell = ($500,000 * (96/100) * 11.5) / ($100,000 * (99 8/32 / 100) * 8.6)

6.47 contracts remain to be sold.

Due to the inability to sell fractional contracts, it is rounded to 6.

Consequently, the answer is "6 contracts sold."

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Depreciation is a noncash expense that is subtracted from net income in determining cash provided from operating activities under the indirect method.
True
False

Answers

When calculating consider investing by operational activities using the indirect approach, degradation is a noncash item that is removed by net revenue. This assertion is accurate.

Depreciation is a nonmonetary component because why?

Depreciation is a continuing charge made to a permanent asset's carrying value that is intended to lower the asset's reported price during its useful life. As such, degradation is seen as a non-cash item.

Is the cost of depreciation considered an operational expense?

Depreciation is a legitimate operating expense. Although fixed assets are frequently purchased by businesses for their operations, they are not always permanent. Accordingly, the asset loses value every year it is used

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select the statement that is true of preferred stock preferred stock? A. Preferred stockholders have a degree of control over corporate policy B.Preferred Stock does not change in value C. Prefered stock can be converted into common stock D. Preferred stock has less protection that common stock if a company goes bankrupt

Answers

A preferred stock can be converted into common stock is the statement that is true of the preferred stock. Therefore, the option C holds true.

A preferred stock of the company can be referred to or considered as the stock that gets preference in the payments of dividends out of the profits made by the company during a given financial period. The amount or percentage of dividend received by preferred stocks is fixed throughout the tenure of them being held by the stockholders of the shares of such company.

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if the price level recently increased by 20% in england while falling by 5% in the united states, by how much must the exchange rate change if ppp holds? assume that the current exchange rate is 0.55 pound per dollar. mishkin, frederic s. economics of money, banking and financial markets, the (what's new in economics) (p. 426). pearson education. kindle edition.

Answers

The new exchange rate as per the recent increase in the price level in England is 0.69 pounds per dollar

Exchange rates measure the value of one country's currency against that of another country or currency zone. Most economies have a free-floating exchange rate, which increases and falls according to market supply and demand. It is true that some exchange rates are fixed and are linked to the value of other currencies.

In order to calculate the exchange rate, we will use the following formula:

New exchange rate = Current exchange rate * ((1 + Percentage increase in price in England) / (1 - Percentage decrease in price in the US))

New exchange rate = 0.55 * ((1 + 0.20) / (1 - 0.05))

The new exchange rate = 0.69 pounds per dollar

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whoch of the following best describes the effects of foreign currency fluctuations on the financail statements of companies with receivables or payables that will be settled

Answers

Companies are required to accrue gains and losses on foreign currency-denominated receivables and payments as of the statement date. Therefore, option (D) is the correct answer for this question.

A foreign currency is the unit of account that a foreign nation uses to conduct official financial transactions. The appropriate government only permits the use of this specific currency for domestic trade.

In general, unless the government of that country approves to its usage, a foreign currency may not be used to pay for goods and services in any nation other than the one in which it is printed. In the Federated States of Micronesia, for instance, the U.S. dollar is used, but if the Micronesian government had not agreed to this, dollars would not be usable in Micronesia. There are, however, certain exceptions to this rule, especially when the local currency is worth little. For instance, a large number of businesses in Zimbabwe take US dollars in addition to (or perhaps as a substitute for) Zimbabwean dollars.

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Complete question:

Which of the following best describes the accounting for foreign currency-denominated receivables and payables?

A) No gains or losses are recorded until the receivable is collected or the payable is paid.

B) No gains or losses are recorded because there has been no cash effect.

C) Companies are required to report the foreign-currency denominated receivables and payables at their current market value on the statement date, but no gain or loss is recognized in the income statement.

D) Companies are required to accrue gains and losses on foreign currency-denominated receivables and payments as of the statement date.

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