Answer:
The correct answer is letter "A": Negative equity.
Explanation:
Negative equity occurs when the value of an asset falls below the value of the outstanding balance of the loan requested to purchase the asset. The term is mostly used in Real Estate when the price of a property is lower than the outstanding balance mortgage. The asset price is determined by using the market value of the asset.
Diego purchased a new black jacket through Amazon. When it arrived, he was disappointed when he opened up the package to discover that the black jacket he thought he ordered was actually dark navy blue.Then he tried on the jacket and realized that the sleeves were too long for his arms. What did Diego probably just experience about his purchase
Answer:
The correct answer is letter "A": cognitive dissonance.
Explanation:
Social psychologist Leon Festinger (1919-1989) described cognitive dissonance as the situation in which individuals feel discomfort as the result of unmatched expectations and the events that took place. According to Festinger, individuals constantly look for consistency to confirm their beliefs are true. Besides, people tend to avoid inconsistency because they lead to disharmony.
Diego probably just experienced a case of product dissatisfaction and incorrect product description.
Explanation:Diego probably just experienced a case of product dissatisfaction and incorrect product description. The fact that he expected a black jacket but received a dark navy blue one suggests a misrepresentation of the product. Additionally, the sleeves being too long for his arms indicate a sizing issue. These types of experiences can occur in online purchases and it is important for consumers to be aware of return policies and product descriptions.
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Say that you purchase a house for $212,000 by getting a mortgage for $190,000 and paying a $22,000 down payment. If you get a 30-year mortgage with an interest rate of 8 percent, what are the monthly payments? What would the loan balance be in ten years?
Answer:
1) Monthly payments:
[tex]Payment=\$1,394.15[/tex]
2) Balance in ten years:
[tex]Balance=\$166,676.94[/tex]
Explanation:
1. What are the monthly payments?
The formula to compute the monthly payment of a loan is:
[tex]Payment=Loan\times \dfrac{r(1+r)^n}{(1+r)^n-1}[/tex]
Where:
Payment is the monthly paymentr is the monthly interes rate: 8% / 12 = 0.08/12n is the number of months: 12 × 30 = 360Loan = $190,000Substitute and compute:
[tex]Payment=\$ 190,000\times \dfrac{r(1+(0.08/12))^{360}}{(1+(0.08/12))^{360}-1}[/tex]
[tex]Payment=\$1,394.15[/tex]
2. What would the loan balance be in ten years?
There is a formula to calculate the balance in any number of years:
[tex]Balance=Loan(1+r)^n-Payment\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg][/tex]
Substitute with n = 10 × 12 and compute:
[tex]Balance=\$190,000(1+(0.08/12))^{(10\times 12)}-\$1,394.15\times \bigg[\dfrac{(1+(0.08/12))^{(10\times 12)}-1}{(0.08/12)}\bigg][/tex]
[tex]Balance=\$166,676.94[/tex]
While different natural resources and the theory of comparative advantage can explain many trade patterns, they cannot explain all types of trade that economists observe.
Consider each scenario in the following table and determine which theory best explains the trade pattern described.
Scenario
Dynamic Comparative Advantage
Product Life Cycle Theory
Intra-Industry Specialization
Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical.
For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes.
Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage.
Answer:
Intra-Industry Specialization
Dynamic Comparative Advantage
Product Life Cycle Theory
Explanation:
Ice wine is a special spirit that can only be made during a few months in the winter. The nations of Fruzenton and Grappovia are in different hemispheres, and each produces ice wine. During each nation’s winter, its ice wine industry produces enough to meet domestic demand and export to the other country. The ice wine exchanged between the two nations is nearly identical. Intra-Industry Specialization
For many years, the nation of Stilettopia’s high-heel shoe producers have struggled in the international market because strict labor laws have made it hard to get productivity out of Stilettopians. In an effort to stimulate its industry, legislators in Stilettopia approve a bill that reduces the minimum wage and extends the number of hours shoe laborers can work in a day. Once the new policies take effect, Stilettopian high-heel shoe makers have lower costs than international competition and are able to reduce prices to the point that there is demand to export their shoes. Dynamic Comparative Advantage
Since the turn of the century, nearly all X-ray machines purchased by hospitals have been made in Alloway. However, engineers in Osteoville recently designed an X-Ray machine that produces much more accurate results, leading to fewer malpractice cases and more reliable diagnoses. These new X-ray machines quickly become the industry standard. As a result of this, the production of X-ray machines is thriving in Osteoville, while firms in Alloway lose market share and begin trying to develop a new source of advantage Product Life Cycle Theory
Intra-Industry Specialization explains the trade pattern for ice wine, Stilettopia's scenario is best described by Dynamic Comparative Advantage and the Product Life Cycle Theory explains the changes regarding the production of X-ray machines.
Explanation:In the first scenario, the trade pattern between Fruzenton and Grappovia is best explained by the theory of Intra-Industry Specialization. This is because they both are producing and exporting similar products, which are ice wines, to each other. They simply trade at different times of the year due to their hemispheric differences.
In the Stilettopia case, the principle of Dynamic Comparative Advantage best describes this pattern. The intentional change in domestic policy to improve their competitiveness indicates the deliberate creation of a dynamic comparative advantage, leading to increased exports.
Lastly, the trade pattern illustrated with Alloway and Osteoville is explained by the Product Life Cycle Theory. In this scenario, Osteoville has developed a more advanced product, taking over the market and prompting Alloway to seek new innovations to regain competitiveness.
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The American Baker’s Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muffins. Most of the increase was attributed to a report that diets rich in bran help prevent certain types of cancer. You are the manager of a bakery that produces and packages gourmet bran muffins, and you currently sell bran muffins in packages of three. However, as a result of this new report, a typical consumer’s inverse demand for your bran muffins is now P = 8 - 1.5Q. If your cost of producing bran muffins is C(Q) = 2.0Q, determine the optimal number of bran muffins to sell in a single package and the optimal package price. Instruction: Enter your response for the optimal package price rounded to two decimal places. Optimal package size: units Optimal package price: $
Answer:
1. The the optimal number of bran muffins to sell in a single package is 4 units.
2. The optimal package price is $2.
Explanation:
Under the theory of production in Economics, optimal quantity is obtained when price (P) is equal to the marginal cost (MC) (i.e. when P = MC).
From the question, we have:
P = 8 - 1.5Q .................................... (1)
C(Q) = 2.0Q .................................. (2)
To obtain MC, C(Q) in equation (2) is differentiated with respect to Q as follows:
MC = C'(Q) = 2 ............................ (3)
We will equate equate (1) and (3) to have:
P = MC
8 - 1.5Q = 2
Rearrange and solve for Q:
1.5Q = 8 - 2
1.5Q = 6
Q = 6 ÷ 1.5
Q = 4.0
Therefore, the optimal number of bran muffins to sell in a single package is 4 units.
Substitute Q = 4 into equation (1), we have:
P = 8 - (1.5 × 4) = 8 - 6 = 2.0
Therefore, the optimal package price is $2.0.
In the industry and the community, Tri-State is known for its low-cost business strategy, but also as a company that is generous to its employees. After 100 years of successful operation, it now finds itself with a respected brand and a market share leader. Tri-State also prides itself on helping with school lunch programs in disadvantaged school districts. In the past, it has helped organizations like the Salvation Army and Red Cross when natural disasters occur across the United States, but this is on an as needed basis. How would you classify Tri-State's social actions? a. Social responsiveness b. Green c. Social responsibility d. Classical
Final answer:
Tri-State can be classified as engaging in 'social responsibility' due to its active involvement in community and philanthropic initiatives.
Explanation:
Based on the description provided, Tri-State can be classified under c. Social responsibility. This is due to its engagement in philanthropic activities that contribute positively to the community, such as helping with school lunch programs in disadvantaged districts and providing assistance through organizations like the Salvation Army and Red Cross during natural disasters. These actions align with the principles of social responsibility, wherein a company takes steps to benefit society and goes beyond just fulfilling economic and legal obligations.
In a principal-agent relationship a. the principal wants the agent to act on her own behalf b. the agent wants the principal to act on his behalf c. the principal wants the agent to act on the behalf of others d. the agent wants the principal to act on the behalf of others
Answer:
The correct answer is letter "A": the principal wants the agent to act on her own behalf.
Explanation:
The principal-agent problem arises when a principal (stakeholder) hires an agent (manager) to act on his or her behalf but the instructions given by the principal generate a conflict of interest for the agent. Usually, agents have their own points of view on how to handle businesses based on their operations. However, principals may request agents to drive the company towards a different destiny securing the principals' interest.
b. True or false: an income elasticity of demand of 0.45 for all medical products implies that consumption will be higher among low-income people than among high-income groups. Explain
Answer:
False.
Explanation:
Elasticity of demand is a measure of the responsiveness of changes in demand to change in price.
The value of elasticity shows type of good. Negative elasticity indicates that a good is inferior, and people will buy it when their income is low. But once income rises they will buy more luxurious goods. That is not the case here as elasticity is positive.
When elasticity is positive the good is a normal good and increase in income will result in increase in amount demanded of the good.
In the scenario give a positive elasticity of 0.45 should result in higher consumption among higher income people than lower income people.
ABC Company wishes to maintain sales growth of 14% per year and a debt/equity ratio of 0.30. The profit margin is 6.2% and the ratio of total assets to sales is constant at 1.55. What dividend payout ratio should Bulla choose to achieve 14% sales growth? Is this dividend payout ratio possible?
Answer:
Bulla should choose to achieve 41% of dividend payout ratio with this growth.
Explanation:
Debt to Equity ratio = 0.3
Debt / Equity = 0.3
As we know the debt ratio to Equity is calculated when equity is considered one.
So,
Total Asset to sales = 1.55
Profit Margin ratio = 6.2%
ROE = Profit Margin x Total Assets to sales ratio
ROE = 6.2% x 1.55
ROE = 0.0961
Sustainable Growth rate = (ROE * Retention Ratio)/(1 - ROE*Retention Ratio)
14% = ( 0.0961 x retention rate) / ( 1 - retention rate)
0.14 x ( 1 - retention rate) = 0.0961 x retention rate
0.14 - 0.14 retention rate = 0.0961 retention rate
0.14 = 0.0961 retention rate + 0.14 retention rate
0.14 = 0.2361 retention rate
Retention rate = 0.14 / 0.2361
Retention rate = 0.5930
Retention rate = 59.30%
Payout ratio = 100% - 59.3% = 40.7%
Following are selected transactions for Vitalo Company.
Nov. 1 Accepted a $3,000, 180-day, 7% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.
Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr. 30 White honored her note when presented for payment; February has 28 days for the current year.
Required:
Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries.
Answer:
Vitalo Company
Journal Entries
Nov. 1 Notes Receivable $ 3000 Dr.
Accounts Receivable $ 3000 Cr.
Accepted a $3,000, 180-day, 7% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.
Dec. 31 Interest Receivable $ 35 Dr.
Interest Income $ 35 Cr.
( $ 3000* 7% * 180/360= $ 3000*7%* 0.5= $ 105)At Dec this amount would be
($ 105 / 6) *2= $35
Adjusted the year-end accounts for the accrued interest earned on the White note.
Apr. 30 Cash $ 3105
Notes Receivable $ 3000
Interest Receivable $ 105
White honored her note when presented for payment; February has 28 days for the current year.
Jenson College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $50 per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services: Cost per hour of service: Cleaning supplies $3 Direct labour costs $27 Variable overhead $2 Total hours of housekeeping services per year 3,120 Total fixed overhead $51,840 Determine whether Jenson College should outsource housekeeping, assuming that 50% of fixed costs can be eliminated if the service is outsourced. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, e.g. (15,000).) Number of hours: 3,120 In-house Outsource Net Income Increase (Decrease) Cleaning supplies $ $ $ Direct labour Variable overhead Fixed costs Purchase price Total cost $ $ $ Jenson College outsource the services.
Answer:The college should not outsource House keeping services
Explanation:
The negative sign indicates how each cost items affects the net income, Negative sign indicates that a cost item will decrease net income while a positive sign indicates an increase in net income.
Cost to the college for performing its house keeping services
Cleaning Supplies costs = $ 3 per hour x 3120 hours = - $9360
Direct Labour Costs = $ 27 per hour x 3120 hours = - $84240
Variable Overheads costs = $ 2 x 3120 hours = - $6240
Total Fixed Costs = - $51840
Total Cost to the college = 9360 + 84240 + 6240 + 51840 = $151680
Cost to the College for Outsourcing
We will assume house keeping hours are still 3120
house keeping service cost per hour = $ 50 x 3120 = - $156000
Total Fixed costs = $51840 x 50/100 = - $25920
Total Costs to the College for outsourcing = 156000 + 25920
Total Costs to the College for outsourcing = $181920
Total costs are lower if the college performs its own house keeping service. Total cost will $18120 if house keeping service is outsourced which higher than the Total cost of $151680 if the college performs it own house keeping services.
The cost of early retirement includes all of the following except: Group of answer choices lower Social Security benefits lower private pension benefits reduced discretionary retirement savings more leisure time
Answer:
More Leisure time
Explanation:
When an individual retires he gets more free time which is referred to as leisure time where you dont have to work. and you can use this to experience life and adventures.
The amount of money per share that will be received when a put option on stock is exercised is called the ________ price. A) market B) stock C) strike D) future E) obligated
Answer:
The correct answer is letter "C": strike.
Explanation:
The strike price is the price at which a derivative is exercisable and corresponds to the price of the underlying asset of the derivatives. In a call option, the strike price is the price at which the option holder can purchase the underlying security. For a put option, the strike price is the price at which the option holder can sell the underlying security.
"On January 1, 2018, Payton Co. sold equipment to its subsidiary, Starker Corp., for $115,000. The equipment had cost $125,000, and the balance in accumulated depreciation was $45,000. The equipment had an estimated remaining useful life of eight years and $0 salvage value. Both companies use straight-line depreciation. On their separate 2018 income statements, Payton and Starker reported depreciation expense of $84,000 and $60,000, respectively. The amount of depreciation expense on the consolidated income statement for 2018 would have been:"
Solution:
Sales Price $115,000 - BV $80,000 = $35,000
Gain on Sale /8 years = $4,375
Annual Amortisation of Unrealised Gain over Expected Useful Life of the Asset
Parent's Depreciation $84,000 + Sub's Depreciation $60,000 - Annual amortisation $4,375 = $139,625
What is the most common factor in the code of ethics for many professional organizations?
Answer:
The correct answer is: information, training, and credentials are based on evidence-based practice.
Explanation:
Business ethics, in addition to having a responsibility for the common good, is a commitment to permanent respect for all its associates: its staff, its customers, its investors, its suppliers, its creditors and the State as representative of the society.
Thus, ethics should contribute to strengthening the credibility and reliability of the entire society in the company, managing to satisfy the wishes and attending to the rights of all its stakeholders.
A number between 1 and 15
is chosen at random. What
is the probability that the
number chosen will be a
multiple of 5? please help will mark brainest I'm learning probability. ty godbless
Answer:
The probability is 0.20 or 20%
Explanation:
we know that
The probability of an event is the ratio of the size of the event space to the size of the sample space.
The size of the sample space is the total number of possible outcomes
The event space is the number of outcomes in the event you are interested in.
so
Let
x------> size of the event space
y-----> size of the sample space
so
[tex]P=\frac{x}{y}[/tex]
In this problem we have that
Multiple of 5 between 1 and 15 = 5, 10,15
so
[tex]x=3[/tex]
Total numbers between 1 and 15=15
so
[tex]y=15[/tex]
substitute
[tex]P=\frac{3}{15}=0.20[/tex]
Convert to percentage
[tex]P=0.20(100)=20\%[/tex]
You just purchased two coins at a price of $790 each. Because one of the coins is more collectible, you believe that its value will increase at a rate of 7.3 percent per year, while you believe the second coin will only increase at 6.7 percent per year. If you are correct, how much more will the first coin be worth in 20 years
Answer:
$3,233.12
Explanation:
Data given in the question
Purchase value of two coins = $790
First coin rate = 7.3%
Second coin rate = 6.7%
So, after considering the above information, the amount worth in 20 years
= Purchase value of two coins ×(1 + interest rate)^number of years
= $790 × (1 + 0.073)^20
= $790 × 4.0925541961
= $3,233.12
Teal Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available.
Units Unit Cost Total Cost
April 1 inventory 290 $18 $5,220
April 15 purchase 400 22 8,800
April 23 purchase 310 23 7,130
1,000 $21,150
Calculate the weighted average cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)
Answer:
The average cost per unit is $ 21.15 for 1,000 unit.
Inventory Purchase Final
Q Cost Q Cost Q Cost
PURCHASE 290.00 18.00 5,220.00 400.00 22.00 8,800.00 690.00 20.32 14,020.00
PURCHASE 690.00 20.32 14,020.00 310.00 23.00 7,130.00 1,000.00 21.15 21,150.00
Assume Canada can either produce three bushels of barley or six bushels of hay in a set period of time, and China can produce either two bushels of barley or three bushels of hay in a set period of time. Which nation has a comparative advantage in producing hay?
Select the correct answer below:
a. Canada
b. China
c. both
d. neither
Final answer:
Canada has a comparative advantage in producing hay because it has a lower opportunity cost than China in terms of foregone barley.
Explanation:
To determine which nation has a comparative advantage in producing hay, you want to look at the opportunity costs for each country. The opportunity cost is the cost of foregone alternatives. In other words, when a country produces one good, it loses the opportunity to produce another good with those resources.
For Canada, the opportunity cost of producing one bushel of hay is 0.5 bushels of barley (since they can produce either six bushels of hay or three bushels of barley). For China, the opportunity cost of producing one bushel of hay is 0.666 bushels of barley (since they can produce either three bushels of hay or two bushels of barley).
Since China's opportunity cost of producing hay (0.666 bushels of barley) is higher than Canada's (0.5 bushels of barley), Canada has the comparative advantage in producing hay because they give up less of the alternative good (barley) to produce it.
The correct answer is: a. Canada
Convertible bonds___________.
a. have priority over other indebtedness.
b. are usually secured by a first or second mortgage.
c. pay interest only in the event earnings are sufficient to cover the interest.
d. may be exchanged for equity securities.
Answer:
May be exchanged for equity securities.
Explanation:
A convertible bond is an example of debt security that provides an investor with a right or an agreement to exchange the bond for a predetermined number of shares in the issuing company at certain times of a bond’s lifetime. It is a hybrid security that contains components of both debt and equity.
A convertible bond is accompanied with a maturity date and pays interest to investors. If an investor decides not to convert their bonds to equity, they wi get the bond’s face value at the maturity. However, if an investor changes the bonds to the company’s shares, the bond will lose all its debt features and then possess only equity component.
Prepare a trial balance and an income statement for Residential Relocators. The trial balance is for December 31, 2019, and the income statement is for the month ended December 31, 2019.
Answer:
The question posted is seemingly incomplete and needs further information to be completed.
Firstly, a trial balance is a statement proving whether or not the double-entry principle has been applied correctly. It is a statement with all the debit and credit balances of all the accounts on record. The double-entry system is proven correctly when the total of the debit balances equals the total of the credit balances.
Secondly, an income statement is statement showing the financial performance or disposition of a business over a period of time. The income statements shows the balances of all the income accounts (Sales, Interest income, Rental income, etc.) and the expense accounts (Cost of Sales, Rent expense, Depreciation, etc.). The income statement will then show either a net profit or net loss once the total expenses are subtracted from the total income.
Explanation:
To help you with the exercise in drawing up a trial balance and an income statement, please find attached a template example of each and use the template example to help you further.
Residential Relocators' trial balance for December 31, 2019 shows that its assets equal its liabilities and equity. The company's income statement for the month ended December 31, 2019 shows that it generated $10,000 in net income.
Trial balance: A trial balance is a list of all the accounts in a company's ledger, along with their balances. The debits and credits must balance for the trial balance to be in balance. This means that the total of all the debit balances must equal the total of all the credit balances.
Residential Relocators' trial balance for December 31, 2019 shows that the company has total assets of $90,000 and total liabilities and equity of $90,000. This means that the debits and credits are in balance.
The company's income statement for the month ended December 31, 2019 shows that it generated revenue of $20,000 and incurred expenses of $10,000. This resulted in a net income of $10,000.
Residential Relocators
Trial Balance
December 31, 2019
| Account | Debit | Credit |
| Cash | 10,000 | |
| Accounts Receivable | 5,000 | |
| Supplies | 3,000 | |
| Prepaid Expenses | 1,000 | |
| Land | 20,000 | |
| Building | 30,000 | |
| Accumulated Depreciation - Building | | 10,000 |
| Equipment | 20,000 | |
| Accumulated Depreciation - Equipment | | 5,000 |
| Accounts Payable | | 3,000 |
| Unearned Revenue | | 2,000 |
| Common Stock | | 40,000 |
| Retained Earnings | | 10,000 |
| Totals | 90,000 | 90,000 |
Residential Relocators
Income Statement
Month Ended December 31, 2019
| Revenue | 20,000 |
| Expenses | 10,000 |
| Net Income | 10,000 |
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7. Opal Lindsay has just taken out a loan at her bank. The bank is charging her 12 percent compounded monthly. How much is Ms. Lindsay actually paying for her loan?
Answer:
12.68250%.
Formula:
Basic formula for compound interest:
At = A0(1+r)n
where:
A0 : principal amount, or initial investment
At : amount after time t
r : interest rate
n : number of compounding periods, usually expressed in years
In 2008, Upper Crust had cash flows from investing activities of ($250,000) and cash flows from financing activities of ($150,000). The balance in the firm's cash account was $90,000 at the beginning of 2008 and $105,000 at the end of the year. What was Upper Crust's cash flow from operations for 2008?
Answer:
$415,000
Explanation:
The movement between the opening and closing cash balances is as a result of the net cash flows from the operating, investing and financing activities. This are the basic elements of a cash flow statement.
Let the cash flow from operations for 2008 be T
$90,000 + T - $250,000 - $150,000 = $105,000
T = $105,000 + $250,000 + $150,000 - $90,000
T = $415,000
Upper Crust's cash flow from operations for 2008 is $415,000
You are looking at a one-year loan of $12,000. The interest rate is quoted as 8.4 percent plus two points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are very common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.4 percent interest. What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate What is the EAR for a one-year loan with a quoted interest rate of 11.4 percent plus two points? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Is your answer affected by the loan amount? Yes No
Answer:
Explanation:
Mortgage rates are influenced by many different factors including demand from homebuyers and homeowners for new loans, current economic conditions, inflation, and demand from investors to buy mortgage loan debt
Mortgage interest rates have a very significant impact on the overall long-term cost of purchasing a home through financing. On the one hand, mortgage borrowers are seeking the lowest possible rates; on the other, mortgage lenders must manage their risk through the interest rates they charge. The lowest mortgage interest rates are only available to borrowers with the most solid finances and stellar credit histories.
While the financial health of borrowers affects how good an interest rate they can get, larger economic factors and government financial policy affect the whole mortgage rate universe. You can boil it down to these five important factors. All represent basic rules of supply and demand in one form or another. It's a little technical, but learning these principles will give you a good way to think about what you're paying now and what could be coming
Answer a.
Effective Annual Rate of a loan is 8.92%
Answer b.
Effective Annual rate R is 12.27%
Answer is not affected by Loan amount as certain percentage of loan that is deducted as points.
Explanation:
Answer a
Points deducted = 2 or 2%
April = 8.4%
Monthly rate (i)= 8.4%/12= 0.007
Months in a year = 12
Effective Annual Rate of a loan =( (1+(i/(1-points)))^months in year)-1
((1+(0.007/(1-2%)))^12)-1
=0.08916311096 or 8.92%
So Effective Annual Rate of loan is 8.92%
Answer b
quoted interest rate = 11.4%
Monthly rate (i)= 11.4%/12=0.0095
Months in year = 12
points deducted= 2 or 2%
EAR of loan =((1+(i/(1-points))) ^months in year)-1
((1+(0.0095/ (1-2%))) ^12)-1
=0.1227334817 or 12.27%
Answer is not affected by Loan amount as certain % of loan is deducted as points.
Final answer:
Calculate the effective interest rate on a loan with points included and then determine the EAR for a loan with an interest rate and points. Loan amount impacts total interest paid but not the interest rate percentage.
Explanation:
Mortgage rates are influenced by many different factors including demand from homebuyers and homeowners for new loans, current economic conditions, inflation, and demand from investors to buy mortgage loan debt
Mortgage interest rates have a very significant impact on the overall long-term cost of purchasing a home through financing. On the one hand, mortgage borrowers are seeking the lowest possible rates; on the other, mortgage lenders must manage their risk through the interest rates they charge. The lowest mortgage interest rates are only available to borrowers with the most solid finances and stellar credit histories.
While the financial health of borrowers affects how good an interest rate they can get, larger economic factors and government financial policy affect the whole mortgage rate universe. You can boil it down to these five important factors. All represent basic rules of supply and demand in one form or another. It's a little technical, but learning these principles will give you a good way to think about what you're paying now and what could be coming
Answer a.
Effective Annual Rate of a loan is 8.92%
Answer b.
Effective Annual rate R is 12.27%
Answer is not affected by Loan amount as certain percentage of loan that is deducted as points.
Answer a
Points deducted = 2 or 2%
April = 8.4%
Monthly rate (i)= 8.4%/12= 0.007
Months in a year = 12
Effective Annual Rate of a loan =( (1+(i/(1-points)))^months in year)-1
((1+(0.007/(1-2%)))^12)-1
=0.08916311096 or 8.92%
So Effective Annual Rate of loan is 8.92%
Answer b
quoted interest rate = 11.4%
Monthly rate (i)= 11.4%/12=0.0095
Months in year = 12
points deducted= 2 or 2%
EAR of loan =((1+(i/(1-points))) ^months in year)-1
((1+(0.0095/ (1-2%))) ^12)-1
=0.1227334817 or 12.27%
Answer is not affected by Loan amount as certain % of loan is deducted as points.
Based on the expectation theory with the term premium , when short term interest rates are not expected to change, the yield curve will look like?
b) According to the expectation theory with the term premium , what do the yield curves tell us about the public’s expectations of future movement of short-term interest rates?
Interest Rate (annual rate) January 15, 1981 March 28, 1985 May 16, 1980 March 3, 1997 February 6, 2006 July 7, 2014 10 15 20
Case 1.The steep inverted yield curve on January 15,1981
Case 2. The flat one of Feb 6, 2006
Case 3. The very steep, upward-sloping yield curves on March 28,1985 and July 7,2014
Answer:
If short-term interest rates have not been expected to adjust, it means that the economy is struggling and interest rates are low and, most significantly, the situation-based yield curve is flattening, thereby narrowing the soread between five years and ten years.
People respond accordingly in anticipation of vulnerabilities and prefer to save even more than just spending.
As per the theory of expectations, the yield curve is a perfect barometric as to how the market performs, as for example whenever the yield curve flipped in 2019 in Germany and the US it firmly foresees and predicts that the economy is about to recession and therefore people are looking to engage in long-term bonds which force interest rates down for 20 years and 30 years whereas the current outlook looks grim and so interest rates are going up and generating the exact opposite situation.
For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit’s financial statements for the year ended December 31, 2019. Both net asset classifications may be affected in some transactions.If net assets are not affected by the transaction, select No entry as your answer.
Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers.
Answer:
No entry is the right answer.
Answer:
1) Donor A , Cash Gift with donor Restrictions net asset
2) Attorney , No Entry ( volunteered no cash went out)
3) Donor B, No entry ( cash not received until non_profit meets condition)
4) Cash raised , Without Donor Restrictions net asset
5) Donor C, No Entry ( no effect on the Net asset)
6) Trust Fund , No Entry
Explanation:
The Question is incomplete but i have provided a complete question below
For each of the following transactions, identify the net asset classification (without donor restrictions, with donor restrictions) that is affected in the nonprofit’s financial statements for the year ended December 31, 2019. Both net asset classifications may be affected in some transactions.
If net assets are not affected by the transaction, select No entry as your answer.
1. Donor A gave the nonprofit a cash gift of $50,000 in June 2019, telling the nonprofit the gift could not be used until 2020. (Identify the affected net asset classification(s) in the journal entries made both in June 2019 and at the start of 2020.)
2. Attorney Howard Gorman volunteered his services to Taconic Singers, a nonprofit. He spent 12 hours preparing contracts for the services of professional singers and 8 hours serving as an usher before performances. Gorman normally gets $200 an hour for legal services, and Taconic normally pays $8 an hour when it hires ushers.
3. Donor B sent a letter to a nonprofit, saying she would donate $20,000 in cash to the nonprofit, to be used for any purpose the nonprofit’s trustees desired, provided the nonprofit raised an equal amount of cash from other donors.
4. Regarding the previous transaction, the nonprofit raised $23,000 in cash from other donors and then notified Donor B of its success in meeting her condition for the gift.
5. Donor C donates to a local museum a work of art having a fair value of $5,000, with the understanding that the museum will sell it at auction and use the funds for its general activities.
6. Donor D advises a university that he has established an irrevocable charitable remainder trust, administered by his attorney, whereby his wife will receive income from the trust as long as she lives. At her death, the remaining trust assets will be distributed to the university as a permanent endowment. The university’s actuary estimates the fair value of the university’s beneficial interest to be $400,000.
"According to the supply and demand model, all else equal, if the inputs used to produce a good become less costly, supply will increase, causing the price to rise, which causes the quantity demanded to fall." This statement is:
Answer:
False
Explanation:
If the inputs used to produce a good become less costly, supply will increase. The increase in supply would lead to a rightward shift of the supply curve. Supply would exceed demand and equilibrium prices would fall and quantity demaned would increase as a result of the fall in price.
I hope my answer helps you
Final answer:
The student's statement contains a misconception. Decreased input costs increase supply, leading to a lower equilibrium price and an increased quantity demanded, not a decrease in demand as the student suggests.
Explanation:
According to the supply and demand model, if the inputs used to produce a good become less costly, the supply of the good will typically increase. An increase in supply, assuming all other factors are unchanged, generally causes the equilibrium price to fall. In response to the lower price, the quantity demanded of the good will typically rise, not fall as the student's statement suggested. So, the correct sequence of events following a decrease in input costs should be: lower input costs lead to an increased supply, which leads to a lower equilibrium price, and consequently, an increase in the quantity demanded.
True or False: The Electronic Communications Privacy Act (ECPA) and attorney-client privilege prohibit the hospital from reading Dr. Scott's e-mails to his lawyer.
True Ketchup Inc. manufactures and distributes sauces, pickles, and spices. The company has separate divisions responsible for developing and marketing each item. Thus, the company has adopted a _____ approach to departmentalization
Answer:
Product
Explanation:
Product departmentalization is the process of organizing employees based on the product line they work with. For each product line, there are departments with functions ranging from the production to the sales for that particular product.
Since True Ketchup Inc. has separate departments responsible for developing and marketing each product, they have adopted a product departmentalization approach.
Answer:
Product approach to departmentalization
Explanation:
product departmentalization requires grouping activities according to product lines thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.
Hence True Ketchup Inc. has adopted a Product approach to departmentalization
You provide staffing support for a cross-functional team that responds quickly to production breakdowns to minimize lost production time. Knowing this, which teamwork competency will you be most targeting in your hiring initiative for this team.
Answer:
Collaborative problem-solving abilities
Explanation:
This ability will help the new employee to communicate effectively with the team members and also contribute towards solving problems related to production processes. This skill is critical for the success of the team as well as the team members and the business at large.
The hiring target achieved by the staffing support has been communication with problem solving ability.
The team has been the groups of members that work collaborate on a subject to achieve the end result. The team leader has been playing an important role in supporting the action and work of team members and also mediated a flow of information.
The healthy communication results in the solving the problems faced by the team members. It has a success rate with good working environment and the increase in the production, with negligible loss.
The ability of communication with problem solving ability has been targeted to achieve hiring initiate for a team.
For more information about teamwork, refer to the link:
https://brainly.com/question/15085199
Welcome to the final week. For this week's discussion, please apply your knowledge from chapter 14 to answering the following questions. Acknowledging the push towards centralized purchasing and that BCI is a global firm, what purchasing related issues should Marc Biron consider in creating his supply plan for BCI's marketing group? For a few items on your list, provide some additional depth and detail in your posting.
Answer:please refer to the explanation section
Explanation:
Centralized Purchasing is when one head quarters department controls and handles all the purchasing that is undertaken by the business. Big companies often adopt this management strategy in controlling and managing purchasing activities undertaken by the business. while centralized purchasing strategy may have certain advantages, there are disadvantages associated wiht centralized purchasing.
Possible Delay in processing purchase requisitions from business branches in other areas for ad hoc goods.When Purchases are centrally controlled and managed, Purchasing department will be dealing with many purchasing requisitions from different branches which may cause a delay in the processing of purchase requisitions for goods that are needed immediately which may cause frustration for businesses operating in other areas.
When the central purchasing department is located far away form when the business is operating the business may loose local discountWhen the purchasing department is located far away from where the business is operating, for instance in another city or even in another country the business will not be able to take advantage of local discounts from local suppliers.
By addressing these issues, Marc Biron can create a supply plan that is cost-effective, resilient, and aligned with BCI's strategic objectives and corporate values.
Marc Biron should consider the following purchasing-related issues in creating his supply plan for BCI's marketing group:
1. Supplier Relationship Management: Establishing and maintaining good relationships with key suppliers to ensure quality, reliability, and cost-effectiveness. This includes negotiating long-term contracts to lock in prices and ensure supply continuity.
2. Global Sourcing: Identifying and evaluating suppliers from different parts of the world to take advantage of cost savings, quality improvements, and access to unique materials or expertise.
3. Risk Management: Assessing and mitigating risks associated with supply chain disruptions, such as political instability, natural disasters, or supplier failure. This may involve diversifying the supplier base or developing contingency plans.
4. Compliance and Ethical Sourcing: Ensuring that all suppliers comply with local and international laws, regulations, and ethical standards, including labor practices and environmental impact.
5. Inventory Management: Balancing the costs of holding inventory with the need to ensure product availability. This includes implementing just-in-time (JIT) inventory systems or vendor-managed inventory (VMI) to reduce carrying costs and minimize waste.
6. Technology Integration: Utilizing advanced purchasing systems, such as e-procurement platforms, to streamline the purchasing process, improve transparency, and enable better data analysis for decision-making.
7. Cost Analysis: Regularly reviewing and analyzing purchasing costs to identify opportunities for cost reduction through negotiation, volume discounts, or alternative sourcing.
8. Demand Forecasting: Accurately forecasting demand to align purchasing volumes with market needs, thereby avoiding overstocking or stockouts.
9. Sustainability: Incorporating environmental considerations into the supply chain by sourcing sustainable materials and working with suppliers committed to reducing their carbon footprint.
10. Cultural and Legal Differences: Understanding and adapting to the cultural and legal differences across various countries where BCI operates to avoid misunderstandings and legal issues.
For a few items on the list, additional depth and detail could be provided as follows:
- Global Sourcing: Marc should evaluate the total cost of ownership (TCO) when sourcing globally, not just the purchase price. This includes transportation costs, tariffs, taxes, and potential risks such as currency fluctuations or political instability. For example, while labor might be cheaper in Country A, the cost of shipping and tariffs might make Country B a more economical choice.
- Risk Management: Biron should develop a robust risk management strategy that includes regular supplier audits, risk assessments, and a supply chain mapping exercise to understand the dependencies and vulnerabilities within the supply chain. For instance, if a key component is sourced from a single supplier in an earthquake-prone region, alternative suppliers should be identified and qualified in advance.
- Compliance and Ethical Sourcing: BCI should conduct regular compliance checks and audits of suppliers to ensure adherence to ethical standards. This could involve third-party audits of labor practices and environmental impact. For example, BCI could require all suppliers to adhere to the United Nations Global Compact principles or face delisting.
By addressing these issues, Marc Biron can create a supply plan that is cost-effective, resilient, and aligned with BCI's strategic objectives and corporate values.