The correct reply is Option D) extend the volume furnished of a right when the price of the good rises. Supply is the variety of special goods and services offered by way of a firm to its customer at a unique period.
What takes place to the furnish curve when volume decreases?An expand in demand shifts the demand curve rightward, and a reduce in furnish shifts the grant curve leftward.
Supply shifters include costs of factors of production, returns from choice activities, technology, vendor expectations, natural events, and the range of sellers. An enlarge in grant is proven as a shift to the proper of a provide curve; a limit in provide is proven as a shift to the left.
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https://brainly.com/question/23364227#SPJ4afb, inc. purchases a new delivery van which is expected to increase cash flows for the next 10 years. afb can finance the purchase with a standard 48-month vehicle loan, or by getting a 10-year loan from the bank. according to the hedging principle, afb should group of answer choices use the 10-year financing in order to match the cash flow stream from the asset with the financing repayments. use the 48-month loan since it matches the type of asset with the type of loan. use either type of financing, but hedge the risk in the options market. avoid using either loan and finance the truck with current cash reserves to avoid interest expense.
Match the asset's cash flow stream with the loan repayments by using the 10-year financing.
What is meant by financing repayments?The act of repayment is the process of returning money borrowed from a lender. The loan agreement sets forth in full the terms and conditions of repayment of the loan, including the applicable interest rate.Loans are often paid back in equal monthly installments (EMIs). The amount paid to the lender each month is represented by these payments. The principal amount and the interest on the principal amount are the two components, and both must be paid to the bank or lender on a specific date each month until the total amount owing has been paid back throughout the period of the loan term. Repayment of the loan in equal payments over a predetermined period of time, including any accumulated interest on the outstanding balance.Match the asset's cash flow stream with the loan repayments by using the 10-year financing.The complete question is:
The purchase of a new delivery van by JoLi Corp. is anticipated to boost cash flows over the following ten years. JoLi offers two options for financing the purchase: a normal 48-month auto loan or a 10-year bank loan. The hedging principle states that JoLi should
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Butchart Gardens is a very large garden in Victoria, British Columbia, renowned for its beautiful plants. It is so large that it could hold many times more visitors than currently visit it. The garden charges an admission fee of approximately $30. At this price, 1,000 people visit the garden each day.
Are visits to Butchart Gardens excludable or nonexcludable? Are they rival in consumption or nonrival? What type of good is it?
What do you think would happen to the number of visitors if the admission fee were reduced to $15? In your opinion, what is the socially optimal admission fee? Justify your answer.
Defend your views by citing information from the book, the Web and/or your own experiences. First, post your response on the discussion board, and then read and reply to the posts of at least two other students, citing those views with which you agree or disagree as well as your reasons for agreeing or disagreeing
As per the garden charges, the socially optimal admission fee is $2 per person.
Here we have given that Butchart Gardens is a very large garden in Victoria, British Columbia, renowned for its beautiful plants.
And it is so large that it could hold many times more visitors than currently visit it.
Here the garden charges an admission fee of approximately $30.
And in this price, there are 1,000 people visit the garden each day.
Here we need to find the socially optimal admission fee.
While we looking into the given question, we have identified that the following details are given,
Number of people per day = 1000
Admission fee = $30
Then the total fees collection is calculated as,
=> 30 x 1000
=> 30000
Then the optimal admission fee that is also known as the expected return is calculated as,
=> 30000/(15 x 1000)
=> 2 per person.
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Janet prefers cashews to almonds. She prefers macadamia nuts to peanuts, but she is indifferent between almonds and peanuts. Which of the following statements can we say for sure? Janet prefers macadamia nuts to almonds. Janet prefers almonds to macadamia nuts. Janet prefers cashews to macadamia nuts. Janet prefers peanuts to cashews.
The statement that can be said for sure woiuld be that Janet prefers macadamia nuts to almonds. Option A
What is meant by preferences?The quality of preferring one item or person over another: She prefers comfortable clothing to fashionable attire. I much like sweet cuisine than hot stuff. The selection of furniture is mostly a question of taste.
Preference is the ranking that an agent assigns to options based on their relative utility in economics and other social sciences. a procedure that yields the "best option" (whether real or theoretical). Preferences are assessments of values, usually in light of practical considerations.
Economists refer to everything we desire in life as "tastes and preferences." These preferences can be little, such as the toppings we enjoy on our pizza, or more significant.
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Carbon8 Corporation wants to raise $120 million in a seasoned equity offering, net of all fees. Carbon8 stock currently sells for $28.00 per share. The underwriters will require a fee of $1.25 per share, and indicate that the issue must be underpriced by 7.5%. In addition to the underwriter’s fee, the firm will incur $785,000 in legal, administrative, and other costs. How many shares must Carbon8 sell in order to raise the desired amount of capital?
Carbon8 stock currently sells for $28.00 per share and it must sell 4.9 million shares to raise the desired amount of capital.
What do you understand about the selling of shares?Selling of shares means a sale or other transaction according to which a person that did not directly or indirectly own shares or other equity in the Corporation before such sale or other transaction acquires all of the outstanding shares and other outstanding equity interests in the Corporation. In a sale of shares, the company’s shareholders sell the shares entitling ownership of the company to the buyer.
Selling shares in a business can generate significant cash, which can pay down debts or be used for investments.
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We would expect the interest rate on Bond A to be higher than the interest rate on Bond B if the two bonds have identical characteristics except that
a. Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation.
b. Bond A was issued by the Exxon Mobil Corporation
and Bond B was issued by the state of New York.
c. Bond A has a term of 20 years and Bond B has a term of 1 year.
d. All of the above are correct.
All of the above options are correct regarding the two bonds having identical characteristics, the interest rate on bond A is expected to be higher than the interest rate on bond B.
What is the relationship between interest rates and bonds?Bond prices are inversely related to interest rates. This means that when interest rates rise, bond prices fall, and when interest rates fall, bond prices rise.
Which bond do you think will pay the highest interest rate?Long-term bonds are riskier than short-term bonds. Long-term bond holders have to wait longer for the principal to be repaid. To offset this risk, long-term bonds typically pay higher interest rates than short-term bonds.
What happens to bonds when interest rates rise?Rate hikes can cause bond prices to fall. Income from municipal bonds is generally exempt from federal taxes, but may be subject to an alternative federal minimum tax (AMT) and state and local taxes.
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which of the following are similarities between mutual funds and hedge funds? multiple choice question. they are regulated by the same statutes they hold assets and sell shares to investors they can pursue market neutral strategies
They hold assets and sell shares to investors among the following is the similarity between mutual funds and hedge funds.
What distinguishes hedge funds from mutual funds?Mutual funds also offer modest entrance requirements for investors because the minimum investment amount is sometimes quite low. A hedge fund, on the other hand, is exclusively accessible to accredited investors. These people have high net worth, which means they make a lot of money or have a lot of money saved up.
Compared to hedge funds, are mutual funds more liquid?Mutual funds have higher liquidity than hedge funds but less liquidity than ETFs. Of the three, hedge funds have the least liquidity. These have modest expense ratios. Investors must, however, pay brokerage fees, STT, and other costs to trade stocks on the stock exchange.
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A contract with a person who has some sort of mental defect that prevents that person from being able to legally contract means that he lacks _____.
consideration
capacity
mens rea
promissory estoppel
actus reus
A contract with a person who has some sort of mental defect that prevents that person from being able to legally contract means that he lacks promissory estoppel.
What is meant by promissory estoppel ?Promissory estoppel, which is a concept in contract law, is the theory that a party may recover based on a promise made if that party reasonably relied on the promise and the party seeking recovery adversely relied on the promise.
The promisee, the promisor, and the broken promise are the three essential elements required for promissory estoppel. When the promisee loses something because he relied on the promise but it was broken, this is considered unfair.
The equitable principle of promissory estoppel was developed by equity to stop injustice. According to the doctrine, if the promisee changes their mind while acting on the promise of the promisor, the promisor must rescind their agreement.
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The residents of Ireland earn $200 million of income from abroad. Residents of other countries earn $300 million in Ireland. Therefore, Ireland's:
a. net factor payments from abroad are positive, and its GDP is larger than its GNP
b. net factor payments from abroad are positive, and its GNP is larger than its GDP
c. net factor payments from abroad are negative, and its GDP is larger than its GNP
d. net factor payments from abroad are negative, and its GNP is larger than its GDP
Ireland's citizens bring in $200 million from abroad. $300 million is made in Ireland by foreign nationals. Ireland's GDP is higher than its GNP, and as a result, its net factor payments from abroad are negative.
What is the phrase used to describe the revenue received by people and non-corporate businesses?Individual Income. Personal income is the revenue received by households and unincorporated enterprises.
Why do income and spending in an economy have the same value?Income and spending in an economy as a whole must be equal because: Every transaction involves a buyer and a seller. Every dollar that a buyer spends is a dollar that a seller makes. A measure of an economy's revenue and outlays is called the gross domestic product (GDP).
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two researchers have identical models, data, coefficients and standard error estimates. they test the same hypothesis using a two-sided alternative, but researcher 1 uses a 5% size of test whiles researcher 2 uses a 10% test. which of the following statements is correct?
a) researcher 2 will use a larger critical value from the t-tables
b) researcher 2 will have a higher probability of type I error
c) researcher 1 will be more likely to reject the null hypothesis
d) both researchers will always reach the same conclusion.
Two researchers have identical models, data, coefficients and standard error estimates , both researchers will always reach the same conclusion.
What function do researchers serve?Researchers have an obligation to share their findings, collaborate with others when needed, and transmit and use information for the good of their employer, the economy, and society at large. In the course of their research, researchers have an obligation to conduct themselves honestly and ethically.
What do scientists go by?An individual who does scientific study to increase knowledge in a particular field is referred to as a scientist. There are various factors that encourage scientists to work. Many people want to know how the world came to be and why it is the way it is. They display a keen interest in reality.
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using cell references enter a formula in cell b6 to calculate monthly payments for the loan omit the optional arguments
Following is the complete procedure to do the foresaid calculation in the Excel.
Click the Financial button and then PMT in the Function Library group of the Formulas tab. In the Rate argument box, type B3/12. In the Nper argument box, type B4. In the Pv argument box, type B2. Select OK.
Any excel spreadsheet, such as one created in Libre Office Calc or Microsoft Excel.
the following while your cursor is in cell B6.
In the function library group on the formulae tab,
pressed the financial button
then choose PMT.
In the rate argument box, type B3/12.
In the Nper argument box, type b4. In the argument box, type B2.
Hit "OK."
These presumptions were made:
In cell B3, the annual interest rate is kept.
payments are in cell B4
the cell-based loan amount is in B2
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he following partial balance sheet is provided for groom company: liabilities and stockholders' equity accounts payable
The debts-to-assets ratio for Groom Company is 37%.
What is the debts-to-assets ratio?The debts-to-asset ratio is one of the financial leverage ratios that demonstrates the proportion of the company's assets contributed by creditors as opposed to the ratio contributed by the stockholders.
Creditors (outside owners of capital) and stockholders are the two financiers of the assets of an entity.
Liabilities and Stockholders' Equity:
Accounts payable $7,900
Salaries payable 13,000
Bonds payable (Due in ten years) 23,000
Total liabilities = $43,900
Common stock, no par 27,700
Retained earnings 46,900
Total liabilities and stockholders' equity $118,500
Total assets = total liabilities and stockholders' equity = $118,500
Debt-to-assets ratio = total liabilities/total assets x 100
= 37.05% ($43,900/$118,500 x 100)
Thus, Groom Company's debt-to-assets ratio is 37%, showing that stockholders contribute 63% while creditors contribute 37% of the assets.
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Complete Question:Liabilities and Stockholders' Equity
Accounts payable $7,900
Salaries payable 13,000
Bonds payable (Due in ten years) 23,000
Common stock, no par 27,700
Retained earnings 46,900
Total liabilities and stockholders' equity $118,500
What is the company's debt-to-assets ratio?
List some of the operations and functions in a company that are dependent on a forecast for product demand.
Production, inventory management, scheduling, facility placement, transportation and logistics, distribution, marketing, and quality control.
What is a company's straightforward definition?A set of people can form new entity called a corporation to carry out and manage a business activity, whether it's the commercial or industrial. An entity could well be set up in a number of ways for tax and responsibility reasons depending on the laws in its jurisdiction.
Briefing:These are some areas that marketing and quality control are related: Marketing aids in predicting demand and sales.
Quality management aids managers in hiring personnel to enhance production efficiency so that it meets consumer demand.
Because forecasting influences both the long-term and short-term market, management in every business management layer views it as a crucial and significant activity.
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Assuming no beginning work-in-process inventory, and that the ending work-in-process inventory is 100% complete as to materials costs, the number of equivalent units as to materials costs is
A. The same as the units completed.
B. The same as the units placed in process.
C. Less than the units completed.
D. Less than the units placed in process.
The number of equivalent units as far as materials costs is the same as the number of units put into production, assuming there is no beginning work-in-process inventory and that the ending work-in-process inventory is 100% complete.
How many production equivalent units were produced?Given the amount of direct materials, direct labor, and manufacturing overhead costs incurred during that time for the products that weren't yet completed, it is the number of finished units of a product that a corporation could have hypothetically produced.
What kind of production units are equivalent?The equivalent units are, for instance, 500 units for materials and 200 units (40% of 500) for direct labor and manufacturing overhead if 500 units are completed in terms of materials but only 60% completed in terms of direct labor and manufacturing overhead.
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The balance sheet lists which of the following?
O assets, liabilities, and owners’ equity
O revenues, expenses, gains, and losses
O assets, liabilities, and investments by owners
O revenues, expenses, gains, and distributions to owners
The balance sheet lists assets, liabilities, and owners’ equity
The balance sheet is a detailed representation of this equation, which demonstrates that a company's total assets are equal to its total liabilities and shareholder equity.
Any transaction involving an accounting equity has an equal impact on both sides of the ledger or offset impacts on the same side. The accounting formula can also be expressed as Shareholder Equity = Assets - Liabilities and Assets = Shareholder Equity.
A company's balance sheet gives a quick snapshot of its financial situation at any one time. On its alone, it cannot provide an understanding of the tendencies manifesting over a longer time frame. Due to this, the balance sheet and those from earlier periods should be compared.
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3 of 5
Which type of loan is based on financial need?
Unsubsidized loans
Online lender loans
Private loans
OSubsidized loans
Subsidized loans are based on financial need.
Explain some of the types of loan given for financial needs?
1. Home Loan: A loan taken out to purchase a home or property.
2. Car Loan: A loan taken out to purchase a car or vehicle.
3. Personal Loan: A loan taken out for personal use, usually with a fixed interest rate.
4. Student Loan: A loan taken out by students to finance their educational expenses.
5. Business Loan: A loan taken out by a business to finance its operations or expansion.
6. Mortgage Loan: A loan taken out to purchase a home or property with a repayment period of up to 30 years.
7. Credit Card Loan: A loan taken out through a credit card with a high interest rate and short repayment period.
Subsidized loans are loans that are given to students based on their financial need, and the government pays for the interest on the loan while the student is in school. This makes it easier for students with limited financial resources to get a college education. Private loans, online lender loans, and unsubsidized loans do not take financial need into account.
Therefore, the answer is Subsidized loans.
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the short-run macroeconomic equilibrium (or srme) occurs whenever the intersects the sras curve.
when the quantity of aggregate output furnished is equal to the extent of mixture output demanded; graphically, this is the price level and real GDP related with the intersection of the SRAS and AD curves.
Where does the short-run equilibrium occur?Short-run equilibrium happens at the intersection of the combination demand curve with the short-run combination furnish curve. The short-run mixture provide curve relates the volume of complete output produced to the fee degree in the quick run. It is upward sloping because of wage and rate stickiness.
On a graph, this happens at the point the place the AD curve intersects the short-run common provide curve, precisely on the long-run aggregate supply curve.
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https://brainly.com/question/29238246#SPJ4when writing off an uncollectible account under the allowance method, is credited, and is debited.
When writing off an uncollectible account under the allowance method allowance for doubtful accounts is debited, and accounts receivable is credited at the end of the accounting period.
What Exactly Are Accounts That Are Uncollectible?Receivables, loans, or other debts that have almost no possibility of being paid are referred to as uncollectible accounts. A debt may become uncollectible for a number of reasons, such as the debtor's bankruptcy, an inability to locate the debtor, the debtor's fraud, or the absence of adequate evidence to support the existence of the debt. Receivables, loans, and other financial obligations that a debtor will not pay are categorised as uncollectible accounts. Accounts that are uncollectible are due to the debtor's bankruptcy or reluctance to pay. The typical return term for goods offered on credit is between 30 and 90 days.
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Euro credits feature rollover pricing.
O a. all of these answers
O b. none of these answers
O c.
Rollover pricing was created on Euro credits so that Euro banks do not end up paying more on Euro currency time deposits than
they earn from the loans.
O d. The lending rate on these Euro credits is stated as LIBOR + X percent, where X is the lending margin charged depending upon the
credit worthiness of the borrower. LIBOR is reset according to a set schedule
O
e.
Because of the rollover pricing feature, a Euro credit may be viewed as a series of shorter-term loans, where at the end of each time
period (generally three or six months), the loan is rolled over and the base lending rate is repriced to current LIBOR over the next
time interval of the loan.
In order to prevent European banks from having to pay more for time deposits in euros than they make on the loans, rollover pricing was introduced for Euro credits.
What is the price of the feature rollover for Euro credits?In order to prevent European banks from having to pay more for time deposits in the same currency than they are making back in loans, rollover pricing was developed for Euro credits.In order to prevent European banks from having to pay more for time deposits in euros than they make on the loans, rollover pricing was introduced for Euro credits.Lending in a currency other than the lending bank's own currency is referred to as "Eurocredit." The majority of the time, only major enterprises and governmental organizations apply for Eurocredit loans because of their size and duration.To learn more about Euro credits refer to:
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sffac no. 5 provides definition of the basic elements of accrual-based financial statements including which of the following?
The five basic elements of accrual-based financial statements as outlined in SFAC No. 5 include assets, liabilities, equity, revenue and expenses.
Assets are resources that are owned or controlled by an entity that are expected to produce economic benefits in the future. Assets can include things like cash, accounts receivable, inventory, and property, plant, and equipment.
Liabilities are obligations of an entity arising from past transactions or events that are expected to be paid in the future. Liabilities can include things like accounts payable, long-term debt, and accrued expenses.
Equity is the residual interest in the assets of an entity after the liabilities have been deducted. Equity can include things like common stock, retained earnings, and other comprehensive income.
Revenue is an increase in equity resulting from the sale of goods or services, the rendering of services, or the use of assets.
Expenses are decreases in equity resulting from the sale of goods or services, the rendering of services, or the use of assets. Expenses can include things like cost of goods sold, salaries and wages, depreciation, and interest expense.
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If you are looking to expand your company's presence online internationally, which of the following should you consider with regards to your online content?
A . Translated by an automated tool only
B Translated but also locally adapted for the audience
C Translated into the native language
D Left the same, and not translated
The answer is (B) Translated but also locally adapted for the audience.
A company's website should be improved in terms of content and languages offered if it wishes to establish an international presence and increase its market.
The expansion of a website's presence into new international markets requires localization and adaptation so that the material not only corresponds to the audience's or user's native tongue but also takes into account the language's linguistic and cultural nuances.
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true or false: A right-to-work law allows employees to decide for themselves whether or not they want to join or financially support a union.
It is true that a right-to-work law allows employees to decide for themselves whether or not they want to join or financially support a union.
States have the power to decide whether workers can be obliged to join a labor union in order to gain or keep a job under right-to-work laws.
Currently, workers have the option to join a union in 27 states plus Guam. Although unions are still allowed to exist in certain states, employees cannot be required to join as a condition of employment.20 states introduced right-to-work legislation during the 2014 legislative session, but no new right-to-work states were created. Tennessee passed a right-to-work law in 1947, making it the only state to do so. Any unit of government is prohibited under the 2014 law from passing laws or regulations that violate the rights provided by the National Labor Relations Act.
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if a u.s. multinational firm borrows euros for one year at 8% interest, and during the year the euro appreciates by 7% relative to the dollar, the approximate before-tax cost of this debt in dollar terms is
The approximate before-tax cost of this debt in dollar terms is Pre-Tax Cost of Debt = Annual Interest Expense ÷ Total Debt. This is the interest rate a company pays on its debt before cost any tax adjustments are made.
Companies borrow money by either issuing market bonds or taking out a bank loan. The cost of debt is the interest rate on new loans that the company must pay. The yield to maturity reflects the current required interest rate, whereas the coupon rate only reflects the required interest rate at the time the bond was issued. To calculate net debt, first add up all debt and cash and cash equivalents. The total cash or liquid assets are then subtracted from the total debt amount.
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After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $340,000 and Allowance for Doubtful Accounts has a balance of $51,000. What is the net realizable value of the accounts receivable?
Choose matching definition
a. 391,000
b. 340,000
c. 51,000
d. 289,000
Based on the given information, the net realizable value of the accounts receivable is 289,000. Thus the correct option is D.
What are accounts receivable?The money that the corporation will receive from customers who have used credit to acquire its products and services is known as accounts receivable (AR).
The calculation for net realizable value is
Accounts Receivable = $340,000
Allowance for Doubtful Accounts= $51,000.
Net realizable value =A/c Receivable - Allowance for Doubtful accounts
= $340,000 - $51,000
=$289,000
Therefore, option D is appropriate.
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Companies within the same industry gather to present, demonstrate, and sell their merchandise at ______.
Consider the market for milk. Suppose a government study is published that says milk
can prevent cancer and other diseases. Shift the demand curve left or right to reflect
the impact on demand for milk as a whole.
Answer:
Shift to the right.
Explanation:
Because of the demand increase the price increases.
concrete company agrees to lay a foundation for diamond properties, but fails to finish the job. diamond hires earth projects inc. to complete the work. in a suit for breach, diamond may recover from concrete
Concrete company agrees to lay a foundation for diamond properties.
What do you mean by Contract?
A legally enforceable agreement between two or more parties known as a contract establishes, clarifies, and regulates the parties' respective rights and obligations. The transfer of commodities, services, money, or a promise to transfer any of those at a later time are common components of contracts.a pledge made to another party stating whether they will or won't carry out a specific activity in the future. For instance, I'll give you $3,500 in exchange for your car. of oneself. In most cases, it reflects the conditions of the offer—a declaration made through words or deeds that both parties accept the terms of the contract.To know more about Contract here
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If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally: A. increase in value. B. decrease in value. C. remain unchanged. D. become worthless.
A corporate bond with a set interest rate will often decrease in value if broader economic interest rates increase. Option (b) is Correct.
For the duration of their terms, many bonds pay a fixed rate of interest. The term "coupon rate" refers to the interest rate as well as the term "coupon payments" for interest payments. If the coupon rate is fixed, it doesn't matter if the market interest rate changes; the coupon payments remain the same. A bond's price may decline when interest rates rise. The federal alternative minimum tax (AMT), state taxes, and local taxes may apply to municipal bond income, which is often exempt from federal taxes.
Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall. Bond prices decline as interest rates increase, while bond prices increase when interest rates decline. Its official name is "weighted average maturity of cash flows." Its simple definition is the price's sensitivity to interest rate movements. Your duration decreases if your cash flows happen more quickly or earlier, and vice versa.
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The Payment for Environmental Services Act (PSA) was designed to protect forests and their services. How did Costa Rica fund the PSA?
Taxes on the industries that profited the most from the PSA were the main source of funding.
What is the concept of payment of environmental services?Payments for environmental services, or PES, are payments made to farmers or landowners who have committed to adopt specific measures to manage their properties or watersheds in order to offer an ecological service.Policies known as payments for ecosystem services (PES) reward people or communities for implementing initiatives that improve the delivery of ecosystem services like carbon sequestration, flood mitigation, or water filtration.The recipient pays: Beneficiaries of ecosystem services are responsible for making payments (individuals, communities and businesses or governments acting on behalf of various parties).Payments for environmental services promote the preservation of natural ecosystems by encouraging environmentally responsible behaviour that protects the interests of other users of the environment.Learn more about Payments for environmental services refer to :
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which of the following is not generally involved in green marketing? developing products whose production, use or disposal is less harmful to the environment than the traditional versions of the product developing products that have a positive impact on the environment pricing products lower than the competition tying the purchase of a product to an environmental organization or event all of the above are involved in green marketing
Answer: Pricing products lower than the competition
ch 2 kb. the predetermined manufacturing overhead rate is calculated by group of answer choices multiplying the predetermined moh rate by the actually allocation base factor multiplying the actual allocation base factor by the estimated annual moh dividing the annual estimated moh by the annual estimated moh allocation base multiplying the predetermined moh rate by the actual allocation base
The predetermined manufacturing overhead rate is calculated by dividing the annual estimated MOH by the annual estimated MOH allocation base.
Predetermined overhead rate is an estimated rate of the cost of manufacturing a product over a specific period of time. The overhead is the cost associated with the manufacturing of a product such as facility maintenance, facility utilities, supplies, equipment, and labor costs. To calculate the predetermined overhead rate for a specific period of time, for example, a fiscal year, the estimated predetermined overhead cost is divided by an allocation base, such as direct labor costs, direct labor dollars, or number of machine-hours. Indirect labor costs, such as executive or supervisor salaries or any labor not related to the physical manufacturing of the product, would not be used in the manufacturing overhead rate.
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