Menu costs.
What Exactly Does Inflation Mean?
A measure of purchasing power is inflation. It is described as the rate of change in goods and service prices over a predetermined time period (usually a year). Simply put, consumer spending decreases when inflation increases because people can no longer afford to make as many purchases. Demand-pull inflation, cost-push inflation, and inherent inflation are the three basic sources of inflation.
The beneficiaries of inflation?
Borrowers gain from inflation because it enables them to repay lenders with money that is now worth less than it did when they first borrowed it. When inflation raises prices, there is a greater demand for loans, which leads to higher interest rates that are advantageous to lenders.
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When a supply chain audit is conducted, workers are usually willing to share their experiences with the auditors.True or False
True. When a supply chain audit is conducted, workers are usually willing to share their experiences with the auditors
When a supply chain audit is conducted, workers are usually willing to share their experiences with the auditors. Supply chain audits often involve assessing various aspects of labor conditions, worker rights, health and safety standards, and environmental practices within the supply chain. Auditors engage with workers to gather information and insights about their working conditions, treatment, and overall experiences. The willingness of workers to share their experiences is crucial in identifying potential issues, violations, or areas for improvement within the supply chain. Open communication and cooperation from workers help auditors gain a comprehensive understanding of the working conditions and make informed assessments of compliance and ethical practices.
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You deposit $1,500 in a bank where you have a savings account. The bank
pays you an interest of 5% per month. But later, the bank reduces the
interest rate from 5% to 3%, and that reduces your interest earnings from
$75 to $45.
What kind of risk explains the given situation?
The savvy entrepreneurial firm feature for chapter 8 focuses on wise acre frozen treats, a company that made organic popsicles from unrefined sweeteners. according to the feature, wise acre frozen treats failed largely because:________.
a) it grew too quickly, which overwhelmed its cash flow
b) it was not careful enough in preparing its pro forma financial statements
c) it was not efficient in the way it utilized its assets
d) it spent too much money on marketing
e) it did not compare its financial ratios to industry peers
Based on the information provided, it is not possible to determine the exact reason for the failure of Wise Acre Frozen Treats.
However, it is important to note that the failure of an entrepreneurial firm is often a complex outcome influenced by multiple factors.
It could be a combination of factors such as rapid growth, inadequate financial planning, inefficiency in asset utilization, excessive marketing expenses, or failure to benchmark against industry peers. To accurately pinpoint the cause of failure, a thorough analysis of the company's operations, financial statements, market dynamics, and strategic decisions would be required.
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What is your opinion of the impact on teamwork of paying large financial bonuses to crew member?
In my opinion, paying large financial bonuses to crew members can have both positive and negative impacts on teamwork. On one hand, the promise of a large bonus can motivate individuals to work harder and push themselves to achieve team goals. This can lead to increased productivity and a greater sense of camaraderie among team members as they work together towards a common goal. Additionally, the acknowledgement of individual contributions through financial incentives can help team members feel valued and appreciated.
On the other hand, if bonuses are based solely on individual performance, it can create a sense of competition among team members and discourage collaboration. This can lead to resentment and mistrust among team members, ultimately undermining teamwork. Furthermore, if bonuses are not distributed fairly or transparently, it can erode trust and damage team cohesion.
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who does the term public refer to when used in accountancy
A firm is operating in the United States with only two other competitors in the industry.a. It is likely this industry would be characterized as:b. Firms in this industry will likely earn:c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that:
The right response is a. an oligopoly, b. this industry will probably make a profit, and c. Economic profits are expected to decrease if international businesses start supplying the goods, increasing the number of competitors.
What does market oligopoly mean?In oligopoly markets, a limited number of suppliers control the market. They are present in every nation and a wide variety of industries. While some oligopoly markets are much more competitive than others, others can at least appear to be so. An oligopoly can prevent new competitors from entering the market, stifle innovation, and raise prices, all of which are detrimental to consumers. Instead than collecting prices from the market, companies in an oligopoly determine pricing, whether collectively—in a cartel—or under the direction of one enterprise.
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why is texas's state park system so important to the state?a. it is the third largest industry in the state.b. it contains untapped oil reserves.c. it employs millions of texans.d. it makes up over 70 percent of the state's land.
The Texas state park system is incredibly important to the state for several reasons. Firstly, it makes up over 70 percent of the state's land, providing a vast amount of recreational opportunities for Texans and visitors alike. Additionally, it is the third-largest industry in the state, generating billions of dollars in revenue each year and providing countless jobs.
While there may be untapped oil reserves within the park system, these are not the primary reason for its importance. Rather, it is the natural beauty and diverse ecosystems within the parks that make them such a valuable resource for Texas. Overall, the state park system is a vital part of Texas's economy, culture, and natural heritage.
Texas's state park system is important to the state primarily because it is the third largest industry in the state (option A). This means that the state park system contributes significantly to the state's economy, providing employment opportunities and attracting tourists.
While the parks do not make up 70% of the state's land (option D) or employ millions of Texans (option C), their importance lies in their economic impact and the preservation of natural resources for future generations. Option B, untapped oil reserves, is not the primary reason for the importance of the state park system, as their focus is more on conservation and recreation.
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ARIBA network may not work as a B2C as opposed to B2B,
It is true to say that the ARIBA network may not function as B2C as opposed to B2B, as ARIBA is a business network focused on Business to Business (B2B) where buyers and suppliers can collaborate.
The advantages of companies participating in the ARIBA network are:
CollaborationOpportunitiesRelationshipTherefore, buyers have the advantages of greater management of the acquisition process and control of expenses, building an effective supply chain.
And suppliers increase cash flow, simplify the sales process and increase customer satisfaction.
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Unions Group of answer choices and firms paying wages above equilibrium to improve worker effort both create structural unemployment. creates frictional unemployment, while firms paying wages above equilibrium to improve worker effort creates structural unemployment. and firms paying wages above equilibrium to improve worker effort both create frictional unemployment. creates structural unemployment, while firms paying wages above equilibrium to improve worker effort creates frictional unemployment.
Answer:
And firms paying wages above equilibrium to improve worker effort both create structural unemployment
Explanation:
In the case when union and firm would pay the wages that are over & above equilibrium in order to improve the effort of the workers so this would happen to develop the structural unemployment as it deals with the change in the technology
So first option is correct
But the other options would be considered incorrect
Which aspect of writing business reports relates to the component of credibility known as competence?.
Providing facts that help decision makers' aspect of writing business reports relates to the component of credibility known as competence.
Competence is the capacity to perform an action successfully. You have the ability to complete a task or job successfully. The knowledge and abilities required to solve a quadratic equation are examples of competence. Alternately, it could include the considerably more extensive and varied sets of talents required to run a multinational organization.
The objective and subjective aspects of a source's or message's plausibility are included in credibility. The concept of "Ethos" is concerned with the speaker's persona.
Trustworthiness and expertise, which both have objective and subjective components, are the two main components of credibility. Although established reliability is an objective criterion, trustworthiness is primarily based on subjective criteria.
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job seekers often rate ________ as the most job-related selection procedure.
The following diagram presents a circular flow model of a simple economy. The outer set of arrows (shown in green) shows tha flow of dollars, and the Irner set of arrows (shown in red) shows the corre
Households: Households are the individuals or consumers in the economy who provide factors of production such as labor, land, and capital. They offer these factors to firms in exchange for income.
Flow of Goods and Services: Households purchase goods and services from firms for consumption and use.
Firms: Firms are the producers or businesses in the economy that produce goods and services using the factors of production provided by households. They aim to generate revenue and make a profit.
Flow of Dollars: Firms pay wages, salaries, rent, interest, and profits to households in exchange for their factors of production.
Flow of Goods and Services: Firms produce goods and services that are sold to households for consumption or to other firms for further production.
The circular flow model shows the continuous flow of money and goods/services between households and firms. This interdependence helps sustain economic activity and growth in the economy.
It's important to note that this is a simplified representation of an economy, and in reality, there are additional components and sectors involved, such as the government sector and the foreign sector. These additions further expand the circular flow of income and expenditure within the economy.
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As long as price exceeds AVC, the firm is better off A) continuing production C) cutting price B) closing D) raising its price.
The company is better off sustaining manufacturing as long as price exceeds AVC.
AVC stands for average variable cost, which is the cost of producing one unit of output. As long as price exceeds AVC, the firm is covering its variable costs and making a contribution towards its fixed costs and profits.
Therefore, it would be better off to continue production. Cutting the price may result in lower profits or losses, closing the business is not necessary if it is making a contribution towards its fixed costs, and raising the price may not be possible if there is competition in the market.
When the price is greater than AVC, it means the firm is covering its variable costs and contributing to its fixed costs. In this situation, continuing production is the best option, as it allows the firm to minimize losses or potentially make a profit.
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pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15 % 32 % Bond fund (B) 9 % 23 % The correlation between the fund returns is 0.15. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The standard deviation of the portfolio is 7.09%.
What is the proportion of stock in minimum risky portfolio?= [(0.23)² - (0.32*0.23*0.15)] / [(0.32)² + (0.23)² - (2*0.32*0.23*0.15)]
= 0.31421708452
= 31.42%
What is proportion of bond fund in minimum risky portfolio?= 1 - 0.31421708452
= 0.68578291548
= 68.58%
What is the expected return of minimum risky portfolio?= 0.3142*15% + 0.6858*9%
= 0.04713 + 0.061722
= 0.108852
What is the standard deviation of your portfolio?= ((0.6858)² * (0.23)² * (0.3142)² * (0.33)²) + ((2 * 0.6858 * 0.3142 * 0.32 * 0.23 * 0.15))^0.5
= (0.00026747972 + 0.00475776218)^0.5
= 0.0050252419^0.5
= 0.0708889406
= 7.09%
Therefore, the standard deviation of the portfolio is 7.09%.
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On June 30, 2009, Sage Company issued 12% bonds with a par value of $750,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2017. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2018, and to issue new bonds. New 8% bonds were sold in the amount of $1,020,000 at 101; they mature in 20 years. Sage Company uses straight-line amortization. Interest payment dates are December 31 and June 30.
(a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018.
(b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months’ interest and the amortization of premium on the bonds.
Answer:
(a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2018.
the discount on bonds payable = $750,000 x 2% = $15,000
amortization per coupon = $15,000 / 40 coupons = $375
By June 30, 2018, $375 x 18 = $6,750 of the discount were already amortized. The carrying value of the bonds = $750,000 - ($15,000 - $6,750) = $741,750
loss on redemption of the bonds = redemption value - carrying value = $780,000 - $741,750 = $38,250
Journal entry to record redemption of bonds:
June 30, 2018, bonds redeemed at a loss
Dr Bonds payable 750,000
Dr Loss on redemption of bonds 38,250
Cr Cash 780,000
Cr Discount on bonds payable 8,250
Journal entry to record new issuance of bonds:
June 30, 2018, bonds issued at a premium
Dr Cash 1,030,200
Cr Bonds payable 1,020,000
Cr Premium on bonds payable 10,200
(b) Prepare the entry required on December 31, 2018, to record the payment of the first 6 months’ interest and the amortization of premium on the bonds.
amortization of premium per coupon = $10,200 / 40 = $255
December 31, 2018
Dr Interest expense 40,545
Dr Premium on bonds payable 255
Cr Cash 40,800
An innovative business idea that no one has never had
An innovative business idea that no one has never had is Offering virtual assistance to other businesses.
What is innovative business idea ?innovative business idea can be described as an idea in business that cn be developed so that it can be a way to earn a living by providing the services or the goods to the consumer.
It should be noted that this innovation can be the one that no one has ever done or the modification of the one that has been in exisitence, however providing the virtual assistance serves as one of the innovation in business that can ring profit.
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Complete question:
State An innovative business idea that no one has never had
The owner of a chicken processing plant makes $1,000,000 per year from his chicken processing plant, and $1,000,000 per year from other sources. He notices that a total of $30,000 worth of chickens per year are being taken home by his 100 employees to supplement their minimum wage living standards (this works out to less than $6 per week per employee). These chickens are being taken out through the fire safety doors, so the owner is considering blocking the doors permanently. This is against the law because any reasonable person knows that sealing fire doors kills people in the event of a fire. The probability of a fire is 0.01 per year (one percent per year). If a fire breaks out it will be discovered that the owner sealed the safety doors, and the owner will have to pay $F = 700, 000 worth of fines and legal fees. The owner's von NeumannMorgenstern utility function is u(x) = √x where x is the owner's income in a given year. The owner cares only about x.
Answer:
1. 1,403.567
2. 1,411.473
3. Algebraic expression 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
4. 1,877,600
5. 1411.761
Explanation:
1. Computation for the owner’s expected utility if he leaves the fire doors unsealed.
First step is to calculate the Owner's income if he leaves the doors unsealed
Owner's income if he leaves the doors unsealed=1,000,000 +1,000,000-30,000
Owner's income if he leaves the doors unsealed=1,970,000
Now let determine the expected utility if he leaves the doors unsealed
Expected utility=1,970,000^0.5
Expected utility=1,403.567
Therefore the expected utility if he leaves the doors unsealed will be 1,403.567
2. Calculation to determine the owner’s expected utility if he permanently seals the doors
First step is to calculate the The Owner's expected income if he seals the door
Owner's expected income if he seals the door=1,000,000 +1,000,000-700,000*0.01
Owner's expected income if he seals the door= 1,993,000
Now let calculate the Expected utility if he leaves the doors sealed
Expected utility if he leaves the doors sealed= 0.99*2,000,000^0.5+0.01*1,300,000^0.05
Expected utility if he leaves the doors sealed=1,411.473
Therefore The Expected utility if he leaves the doors sealed is 1,411.473
3. Calculation to determine the algebraic expression for the owner’s expected utility as a function
First step is to calculate the The owner's expected income with a fine F
Owner's expected income with a fine F= 1,000,000 +1,000,000-F*0.01
Owner's expected income with a fine F = 2,000,000-0.01F
Now let determine The algebraic expression for the owner's expected utility if he seals the door with a fine F
Algebraic expression= 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
Therefore The Algebraic expression is 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
4. Calculation to solve for the minimal fines and legal fees that will make the owner decide not to seal the doors using the expression from the previous problem and the owner’s expected utility if he leaves the fire doors unsealed
Based on the information given the owner may decide that he won't seal the door In a situation where the expected utility from sealing is as well equal to the expected utility from not sealing the door which was Calculated as:
0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05=1403.567
Now let calculate Fines and legal fees
Fines and legal fees=(2,000,000-F)^0.05=100(3.49857)= 349.857
Fines and legal fees=2,000,000-349.857^2=1,877,600
Therefore based on the above calculation in a situation were the Fines as well as the legal fees are equal to or higher than F=1,877,600 which means that the owner may decide not to seal the doors.
5. Calculation to Find the C that gives the plant owner complete coverage
First step is to calculate the owner expected utility will in a situation were the owner contributes $C to state politicians
Expected utility= 0.99*(2,000,000-C)^0.5+0.01*(1,300,000+100C)^0.05
Second step is to calculate the The plant owner complete coverage when 100C=700,000
Plant owner complete coverage=700,000/100
C=7000
Third step is to calculate what the owner will likely make this contribution if the expected utility is:
0.99*(2,000,000-C)^0.5+0.01*(1,300,000+100C)^0.05 is greater than 0.99*2,000,000^0.5+0.01*1,300,000^0.05
=1411.473
Hence,
0.99*(1,993,000)^0.5+0.01*(2,000,000)^0.05= 1411.761
Therefore the owner expected utility in a situation were the owner contributes $C to state politicians is 1411.761
the buying process usually begins with and ends with . group of answer choices recognition of a need or problem; post-purchase evaluation recognition of a need or problem; purchase decision alternative evaluation; purchase decision information search; purchase decision information search; post-purchase evaluation
The buying process usually begins with recognition of a need or problem and ends with post-purchase evaluation.
Determine the issue The buying procedure begins at this point. A consumer won't start shopping unless they are aware of their needs or wants. A buyer will make a purchasing choice if he feels compelled to acquire a specific product. The buying process is a term used in marketing to describe the typical processes a consumer takes while making a purchasing decision. Learn about the stages of the purchase process and how marketers attempt to influence them. The series of actions a consumer will take to decide what to buy is known as a buying process.
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.Captain Kirk is refurbishing the transporter room of the Starship Enterprise. The cost basis for this project is $20 billion. After 25 years of use it can be sold to the Cardasians for $5 billion. The number of years depreciation is 25 for straight-line and declining balance.
If Captain Kirk uses the declining balance depreciation method, what is the value of d3?
To determine the value of d3 in the declining balance depreciation method, we need to understand the concept of declining balance depreciation and its calculations.
In the declining balance method, the asset is depreciated by a fixed percentage each year, typically higher than the straight-line method. The depreciation expense decreases over time as a percentage of the remaining book value of the asset.
To calculate the declining balance depreciation for a particular year, we use the following formula:
Depreciation Expense = Book Value at the Beginning of the Year * Depreciation Rate
In this case, we are given the cost basis of the transporter room refurbishment project as $20 billion and the number of years depreciation is 25.
To find the value of d3, we need to calculate the depreciation expense for year 3 using the declining balance method.
Let's assume the depreciation rate is represented as a decimal "r."
Year 1 depreciation expense = Book Value at the Beginning of the Year * Depreciation Rate = $20 billion * r
Year 2 depreciation expense = (Book Value at the Beginning of Year 1 - Year 1 depreciation expense) * Depreciation Rate = ($20 billion - Year 1 depreciation expense) * r
Year 3 depreciation expense = (Book Value at the Beginning of Year 2 - Year 2 depreciation expense) * Depreciation Rate = ($20 billion - Year 1 depreciation expense - Year 2 depreciation expense) * r
Since we don't have the specific values for the depreciation rate or the depreciation expenses in years 1 and 2, we cannot determine the exact value of d3 without additional information.
To find the value of d3, we would need to know the specific depreciation rate used and the depreciation expenses for the first two years.
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The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a(n) Blank______.
The impetus that pushes consumers to satisfy their unmet needs, such as having no laundry detergent to do the wash, is a motive.
What is a Motivation?This refers to the internal or external drive that makes a person to do something, in hopes of a reward or to escape punishment.
Hence, we can see that based on the drive that is inherent in humans to accomplish a task, this leads them to satisfy their unmet needs and this is known as a motive.
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Why is social service a more respectable job?
Answer:
they provide public services
Explanation:
An investor entered into a contract with a winery. The contract provided that the investor would invest $1 million in the winery and, in return, the winery would produce and market at least 500,000 bottles of wine each year for five years under a specified label. The contract included a provision that, if feasible, the wine would be distributed by the winery only through a certain wholesale distributor of fine wines. Neither the investor nor the winery had previously dealt with the distributor. The distributor learned of the contract two days later from reading a trade newspaper. In reliance thereon, he immediately hired an additional sales executive and contracted for enlargement of his wine storage and display facility. If the winery refuses to distribute the wine through the distributor and the distributor then sues the winery for breach of contract, is it likely that the distributor will prevail
Answer:
It is NOT likely that the distributor will prevail.
Explanation:
There was no contract between the distributor and the winery. The intended distributor was not clearly stated in the trade newspaper that the distributor read and relied on to expand his salesforce and storage and display facilities. The distributed voluntarily acted on its own whims and caprices. A contract cannot be imagined. There must be an offer and acceptance, establishing the full consent of the parties to enter into a contract. The intention to contract is also lacking.
if bob and the computer company negotiated a good-faith estimate of damages of $10,000.00, in the contract clause, but several years later when there was a breach by the computer company, the actual damages were only $500 --- how much is paid in damages?
If Bob and the computer company negotiated a good-faith estimate of damages of $10,000.00 in the contract clause but several years later when there was a breach by the computer company, the actual damages were only $500.
How much is paid in damages?When Bob and the computer company negotiated a good-faith estimate of damages of $10,000.00, in the contract clause, it means that $10,000 was agreed upon in advance as the amount of compensation that will be paid if the contract is breached.
In the event of a breach by the computer company, the actual damages were only $500, which is a minor amount.
As a result, the $500 will be paid as damages because it is the actual amount of damages in this situation.
Therefore, in damages, $500 will be paid. The answer is $500.
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In the long run, increasing the national debt will cause which of these?
A) higher tax revenue
B) an increase in jobs
C) higher interest rates
D) an increase in production
Macomb corporation purchases inventory on account for $75,000. the journal entry for this transaction would:_____.
The journal entry for this transaction would:
Dr. Inventory $75,000
Cr. Accounts payable $75,000
What does purchase on account mean?
Purchase on account means that the inventory purchased was on credit basis, which means that Macomb corporation only promises to pay $75,000 owed due to inventory purchase at a later time.
The appropriate journal entry is to debit the inventory account, which is the receiving account where the accounts payable(representing the supplier) is credited since the giving account is to be credited.
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The biden administration announced on wednesday that it would give three native tribes a total of $75 million to do what?
Answer:
move tribal homes and vital buildings and facilities out of area threatened by flooding, erosion, and other hazards
Most licensed architects are members of which association? A. ACSA B. AIA C. NAAB D. NCARB E. NVOB
Answer: It is B. AlA
Explanation:ALA is open to all architects and professions related to architecture. Our members hold individual memberships and specialize in all types of architecture.
Discuss reasons why a business might choose to sell direct to customers through a website with e-commerce facilities, as opposed to through fixed (physical ‘bricks and mortar') premises.
Answer:
Businesses might prefer selling direct to customers through a website with e-commerce facilities because:
1. For covering a wider distance, distance is not a barrier.
2. For flexibility for customers, as some e-commerce even accepts cryptocurrency payments.
3. For product and price comparison.
4. For saving cost incurred from having fixed (physical ‘bricks and mortar') premises.
5. For saving the cost of paying workers.
6. For maintaining social distancing protocol given by the government especially during the pandemic. This doesn't put anyone at risk.
Explanation:
The question above asks for justifications why a business might choose to sell direct to customers through a website with e-commerce facilities rather than selling to customers through fixed (physical ‘bricks and mortar') premises.
First, selling to customers through a website with e-commerce facilities involve virtual transactions with customers paying for goods and services they are interested in over the internet. With this, customers can pay with their bank cards through e-commerce websites. While selling through fixed (physical ‘bricks and mortar') premises involve direct contact in-person with the customer and possibly payment is made in cash or through any other accepted methods.
The balance sheet balances when _____.
The balance sheet balances due to the basic accounting equation, Assets = Liabilities + Equity.
The balance sheet is a financial statement that reports a company's assets, liabilities, and equity at a specific point in time. It must always balance, meaning that the total amount of assets must equal the total amount of liabilities and equity. This is because the assets of a company are financed by its liabilities and equity.
This equation reflects the idea that the resources a company owns (assets) are funded by borrowing (liabilities) and owner's investment (equity). Therefore, any changes in assets must be balanced by corresponding changes in liabilities or equity to ensure the equation remains balanced.
The balance sheet provides a snapshot of a company's financial position at a specific point in time and is a crucial document for investors, creditors, and analysts to understand a company's financial health and performance.
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a 20-year bond with 10% yearly coupons has a 9.25% current yield. it can be called in three years at a call price of $1050. find the yield to call.
The yield to call of a 20-year bond with 10% yearly coupons and a 9.25% current yield, which can be called in three years at a call price of $1050, is 10.73%.
To calculate the yield to call, we need to first calculate the call price. The call price is the present value of all the cash flows from the bond up until the call date, discounted at the yield to call.
This can be done using the formula:
Call Price = CF1 / (1 + YTM) + CF2 / (1+YTM)^2 + ... + CFn / (1+YTM)^n
Where CFn is the cash flow at period n and YTM is the yield to call.
Once we have calculated the call price, we can use the call price to calculate the yield to call. This can be done by solving for YTM in the equation given above. After rearranging the equation, we can calculate the yield to call by using the formula:
YTM = (CF1 / Call Price - 1)^(1/n) - 1
Where n is the number of periods until the call date.
In the given example, the yield to call is 10.73%.
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