According to the Heckscher-Ohlin model, countries should specialise in producing and exporting that use plentiful factors of production while importing goods that use scarce factors.
What is the Heckscher-Ohlin assumptions?The Heckscher-Ohlin theory assumes that countries vary in their endowments of production factors such as labour, capital, and natural resources. According to the theory, countries will tend to specialise in producing and exporting goods that use abundant production factors while importing goods that use scarce production factors. Because abundant factors are less expensive than scarce factors, it is more cost-effective to use plentiful factors to produce goods that require them. The theory also assumes there were no trade barriers, such as tariffs and quotas, and that production factors cannot freely move between countries.
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two random variables X and Y are independently distributed if all of the following conditions hold, with the exception of
a E(Y) = E[E(Y|X)]
b if the conditional distribution of Y given Xequals the marginal distribution of Y.
c knowing the value of one of the variables provides no information about the other.
d Pr (Y = y|X = x) = Pr (Y = y).
When we say that two random variables X and Y are independently distributed. In other words, knowing the value of one variable provides no information about the other. Option C
There are four conditions that must hold for two variables to be considered independent, with the exception of one of them. The first condition states that the expected value of Y should be equal to the expected value of the conditional expectation of Y given X (E(Y) = E[E(Y|X)]). This condition means that the average value of Y should be the same, regardless of whether or not we know the value of X.
The second condition states that if we know the value of X, the distribution of Y should be the same as its marginal distribution (the distribution of Y without considering the value of X). This means that the distribution of Y does not depend on the value of X.
The third condition states that knowing the value of one variable provides no information about the other. This is the key condition for independence.
The fourth condition states that the probability of Y taking a certain value y given that X has a certain value x (Pr(Y=y|X=x)) is the same as the probability of Y taking that value y (Pr(Y=y)). This condition means that the value of X does not affect the probability of Y taking a certain value.
In summary, two random variables X and Y are independently distributed if knowing the value of one variable provides no information about the other. This is the key condition for independence, and the other conditions support it. Option C is correct.
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How much does it cost to build a private school in Dubai?
Answer:
14 per cent
Explanation:
(Table: GoGo Gas and Fanny's Fantastic Fuel) Use Table: GoGo Gas and Fanny's Fantastic Fuel. The table shows a payoff matrix for GoGo Gas and Fanny's Fantastic Fuel in a small town. Each firm can set either a high price or a low price, and customers view both gas stations as nearly perfect substitutes. Profits in each cell of the payoff matrix are given as (GoGo's profit, Fanny's profit). The dominant strategy for Fanny is to:
A) NA
B)
C)
D)
E)
Fanny is better off setting a low price, regardless of what gogo does.
the dominant strategy for fanny is to set a low price.
gogo gas | fanny's fantastic fuel
------- | --------
high price | (100, 100) | (25, 150)
low price | (50, 50) | (150, 25)
if fanny sets a high price, gogo can either set a high price or a low price. if gogo sets a high price, both firms will make a profit of $100. however, if gogo sets a low price, fanny will make a profit of $25 while gogo will make a loss of $50. if gogo sets a low price, fanny can either set a high price or a low price. if fanny sets a high price, both firms will make a loss of $50. however, if fanny sets a low price, both firms will make a profit of $50.
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What are withdrawals and how do they affect the basic accounting equation?
Funds that are taken from the business to pay for personal expenses. They decrease the owner's equity in the business.
Eliza Conner owns a small clothing boutique. Eliza uses her personal checking account for both business and personal needs. How would you convince Eliza that she should open a separate
bank account for her business?
Answer:
1. It will cause them confusion throughout the tax calculating process.
2. Using a single account will make it difficult to keep payroll records.
3. Keep track of your personal expenses and earnings.
Explanation:
1. It is preferable to establish a separate account to separate the firm's actual income and expenses.
2. Payroll expenses are indistinguishable from personal expenses.
3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.
The following table shows the average returns for some of the largest mutual funds commonly found in retirement plans. (Assume end-of-month deposits and withdrawals and monthly compounding, and assume that the quoted rate of return continues indefinitely.) Mutual Fund Fidelity Growth Company Vanguard 500 Index PIMCO Total Return Vanguard Total Bond Market Index Rate of Return 14.83% 13.25% 2.77% 2.67% Type Stock fund Stock fund Bond fund Bond fund For the past 15 years you have been depositing $300 per month in the PIMCO bond fund, and you have now transferred your current balance to the Vanguard bond fund, where you plan to continue depositing $300 per month until you retire in 20 years. How much can you anticipate having in the investment when you retire? HINT [See Example 1.] (Round your answer to the nearest cent.) I need to calculate the Vanguard bond fund investment.
To calculate the anticipated value of the Vanguard bond fund investment, we need to consider the monthly deposits, rate of return, and the time until retirement. By using the formula for future value of a series of deposits, we can determine the total amount accumulated in the investment when the individual retires.
To calculate the anticipated value of the Vanguard bond fund investment, we can use the future value of a series formula. Given a monthly deposit of $300 and a rate of return of 2.67%, compounded monthly, we can calculate the future value of the investment after 20 years.
Using the formula for future value of a series of deposits:
FV = P * (\((1 + r)^n - 1\)) / r
where FV is the future value, P is the monthly deposit, r is the monthly rate of return, and n is the number of periods, we can substitute the values into the formula. In this case, the monthly deposit is $300, the monthly rate of return is 2.67% (expressed as a decimal), and the number of periods is 20 years multiplied by 12 months.
After performing the calculation, rounding the result to the nearest cent will give us the anticipated value of the investment in the Vanguard bond fund when the individual retires.
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Christopher has a collection of 20 video games and will buy 4 more each month. Peter has a collection of 92 video games and will sell 5 each month. After how many months will they have the same number of video games? How many will that be?.
Answer:
It would be 8 months and they each would have 52 games.
Explanation:
The number of months after both will have the same number of video games will be 8.
How to form an equation?Determine the known quantities and designate the unknown quantity as a variable while trying to set up or construct a linear equation to fit a real-world application.
In other words, an equation is a set of variables that are constrained through a situation or case.
As per the given,
Christopher has a collection of 20 video games and will buy 4 more each month.
The number of video games after x number of months,
⇒ 20 + 4x
As per the given,
Peter has a collection of 92 video games and will sell 5 each month.
The number of video games after x number of months,
⇒ 92 - 5x
The number of months when both will have the same number of video games will be as,
20 + 4x = 92 - 5x
4x + 5x = 92 - 20
9x = 72
x = 8
Hence "Eight months will pass after each has an equal quantity of video games".
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a detailed plan for the future that is usually expressed in formal quantitative terms is a(n) . (enter only one word per blank)
A detailed plan for the future that is usually expressed in formal quantitative terms is a budget.
What do you mean budgeting?The process of creating and managing a financial plan that forecasts income and expenses for a time period is known as budgeting. Budgeting is a crucial ability for business owners, executives, and managers to ensure that teams and organisations have the resources to carry out initiatives and achieve goals.The foundation of a budget is the estimated revenue and expenses for a specific time frame. In order to avoid overspending, expenses should be deducted from predicted income before any remaining funds are distributed to projects and initiatives.To see how closely predictions matched actual spending, past periods' budgets can be compared to the company's actual financial allocation and performance.Zero-based budgeting, where each item is initially valued at zero dollars before being reallocatedWhen creating the budget for the following period, incremental budgeting, also known as static budgeting, analyses historical data to add or subtract a percentage from the preceding period.To learn more about budget refer :
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Which is a good rule to follow when sending business emails? (1 point)
Answer:
Avoid forwarding spam and unnecessary messages such as chain letters.
Explanation: did the test
The good rule that must follow at the time of sending business emails is to avoid forwarding spam and unwanted texts like chain letters.
What is email?An email, is also called as the electronic mail. It is one of the most extensively employed features of the Internet, that is mostly used in the formal business organizations.
It allows a person to transport and acquire messages from nay person in the globe that has an email account. Within the TCP/IP suite, email uses a variety of protocols.
When sending business emails, a good tip to follow is to avoid forwarding spam and undesirable texts like chain letters.
Therefore, the use of formal languages and proper formats made the emails more accurate.
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Describe three features of Agriculture before the Agricultural Revolution.
The three features of Agriculture before the Agricultural Revolution are "Nomadic lifestyle, Small-scale farming, and Limited technology".
The agricultural revolution was the agriculture small-scale practices and subsistence-based activity that played a secondary role to hunting and gathering.
The three features of Agriculture before the Agricultural Revolution are Nomadic lifestyle, Small-scale farming, and Limited technology.
The Nomadic lifestyle referred to practice in agriculture in which humans were predominantly nomadic and relied on hunting and gathering for sustenance. They moved from place to place in search of food.
The Small-scale farming referred to clearing small plots of land and planting crops.
The Limited technology referred to used primitive tools, such as stone axes and digging sticks, to clear land and plant crops.
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Which is an example of a marketing function for a business? 1.Preparing income statements for the business 2. Obtaining new products to replace sold stock 3.Interviewing potential sales employees 4. Creating a banner ad for the company website
Answer:
4. Creating a banner ad for the company website
Answer:
4
Explanation:
on a test and got correct answer
calculate the intrinsic value of rio tinto in each of the following scenarios by using the three-stage growth model of spreadsheet 18.1. treat each scenario independently. a. the terminal growth rate will be 10.40%.
The Intrinsic value is $98.63 billion terminal growth rate will be 10.40%. The Intrinsic value is $97.51 billion if Rio Tinto's actual beta is 1.03 and the Terminal value is $174.56 billion.
a. The terminal growth rate is 10.40%.
The three-stage growth model can be calculated by the following formula:
Intrinsic value = (F1 / (1 + r)^1) + (F2 / (1 + r)^2) + (F3 / (1 + r)^3) + (PV of terminal value)
Terminal value = FCF3 * (1 + g) / (r - g)
g = Terminal growth rate
Let us assume that the free cash flow for Rio Tinto for the next three years is $8 billion, $10 billion, and $12 billion. The discount rate is 8%.
Terminal value = $12 billion * (1 + 10.40%) / (8% - 10.40%)
Terminal value = -$223.53 billion
PV of terminal value = -$223.53 billion / (1 + 8%)^3
PV of terminal value = -$167.05 billion
Intrinsic value = ($8 billion / (1 + 8%)^1) + ($10 billion / (1 + 8%)^2) + ($12 billion / (1 + 8%)^3) + (-$167.05 billion)
Intrinsic value = $98.63 billion
b. The following formula is used to calculate the required rate of return for Rio Tinto using the CAPM is,
r = Rf + β x (Rm - Rf)
Let us assume that the Expected market return is 11.30%
r = 2% + 1.03 * (11.30% - 2%)
r = 11.49%
Terminal value = $12 billion * (1 + 10.40%) / (11.49% - 10.40%)
Terminal value = $251.81 billion
PV of terminal value = $251.81 billion / (1 + 11.49%)^3
PV of terminal value = $168.61 billion
Intrinsic value = ($8 billion / (1 + 11.49%)^1) + ($10 billion / (1 + 11.49%)^2) + ($12 billion / (1 + 11.49%)^3) + $168.61 billion
Intrinsic value = $97.51 billion
c. The intrinsic value of Rio Tinto can be calculated using the same free cash flow projections.
Terminal value = $12 billion * (1 + 10.40%) / (8.30% - 10.40%)
Terminal value = $174.56 billion
Therefore we can conclude that the Intrinsic value is $98.63 billion terminal growth rate will be 10.40%. The Intrinsic value is $97.51 billion if Rio Tinto's actual beta is 1.03 and the Terminal value is $174.56 billion.
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The complete question is-
calculate the intrinsic value of Rio Tinto in each of the following scenarios by using the three-stage growth model of spreadsheet 18.1. treat each scenario independently.
a. the terminal growth rate will be 10.40%.
b. Rio Tinto's actual beta is 1.03
c. The market risk premium is 9.30%
If net sales are $600,000 and gross profit is $412,800, what is the gross profit rate?.
If net sales are $600,000 and gross profit is $412,800, the gross profit rate is 68.8%.
Gross Profit: A company's gross profit is calculated by deducting its entire sales from its total cost of products sold. All products sold by the business are included in the overall sales. All of the variable costs related to sales are added together to form the overall cost of the products sold.
How can I determine my gross profit?
Cost of goods sold (COGS) is subtracted from total revenue to determine gross profit. Typically, only variable expenses are taken into account when determining gross profit from COGS. Variable expenses are those that are directly related to output (like material and shipping costs).
What is a gross profit, exactly?
Gross profit, often known as gross income, is calculated by deducting a company's cost of goods sold from its sales (COGS). It is frequently used to assess how effectively a business is controlling labor and resources throughout production.
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Banking System Note: the monetary aggregates below are for all banks in the banking system Currency held by the public - $180 billion Total Checkable Deposits = $720 billion Total Bank Reserves = $185
The money supply in the banking system is $900 billion.The money supply in the banking system can be determined by adding the currency held by the public and the total checkable deposits.
The money supply in the banking system can be determined by adding the currency held by the public and the total checkable deposits. In this case, the currency held by the public is given as $180 billion, and the total checkable deposits are $720 billion. Therefore, the money supply in the banking system is $180 billion + $720 billion = $900 billion.
The money supply is a key concept in macroeconomics and refers to the total amount of money in circulation in an economy at a given time. It includes both physical currency, such as notes and coins held by the public, as well as the balance in checking accounts that can be readily accessed for making payments.
In the context of the banking system, the money supply is composed of two main components: currency held by the public and checkable deposits. Currency held by the public refers to the physical cash that individuals and businesses hold outside of banks. Checkable deposits, on the other hand, are funds deposited in bank accounts that can be withdrawn by writing checks or using electronic payment methods.
When calculating the money supply, these two components are added together because they represent the readily available money that can be used for transactions. In this case, the currency held by the public is $180 billion, and the total checkable deposits are $720 billion. By adding these amounts, we find that the money supply in the banking system is $900 billion.
It's worth noting that the money supply can be influenced by various factors, including the actions of central banks, commercial banks, and individuals. Changes in the money supply can have significant effects on an economy, impacting inflation, interest rates, and overall economic activity.
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1 Which one of the following is not Which one of the key roles / purposes of marketing within
business?
A To identify potential customer groups
B To inform customers about the business's product or service
C To prepare cash flow forecasts
D To understand customers and their needs
Your answer
i
If a product costs £80 to manufacture and a 15% mark-up is added, the price at which the product will be sold is:
Answer:
92£
Explanation:
80 * 1.15 = 92
david maslanka’s symphony no. 4 encompasses what hymn?
Based on musical analysis, David Maslanka's symphony no. 4 encompasses the hymn known as "Old Hundred."
David Maslanka's symphony no. 4 is considered to gather inspiration from the typical western Montana landscape.
It is similar to Maslanka's perception of a "voice of the Earth."
Another hymn encompasses in David Maslanka's symphony no. 4 is The Bach chorales: Only Trust in God to Guide You and Christ Who Makes Us Holy.
Hence, in this case, it is concluded that the correct answer is the Old Hundred hymn.
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Which depreciation method generally results in the lowest net income for the first year a plant asset is utilized?.
The double declining-balance is a depreciation method generally results in the lowest net income for the first year a plant asset is utilized.
What is double declining balance (DDB) method all about?The double declining balance method can e explained as type of declining balance method that uses double the normal depreciation rate.
Some of the Depreciation rates used are;
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Which is an example of a small business showing social responsibility to individuals within the company?
A. starting an office recycling program
B. developing sustainable business practice
C. donating money to local organizations
D. allowing employees to work from home
Starting an office recycling program, developing sustainable business practice and donating money to local organizations are examples of a small business showing social responsibility to individuals within the company.
Company have a social responsibility to the communities in which they operate. This includes ensuring that they are good corporate citizens, providing support for local causes and charities, and protecting the environment.
Sustainable business is a term that is often used to describe businesses that are environmentally friendly or that have a positive social impact.
Hence, the correct options are "A, B & C".
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Your company is looking at purchasing a front-end loader and has narrowed the choice down totwo loaders. Loader 1 costs $150,000 with a useful life of seven years with a salvage value of
$10,000 at the end of the seventh year. Loader 2 costs $110,000 with a useful life of five years
with a salvage value of $10,000 at the end of the fifth year. The annual profit for either one is
$20,000. Using a MARR of 20%, which alternative should your company buy?
Based on the provided information and a minimum attractive rate of return (MARR) of 20%, the company should choose Loader 1 over Loader 2 for purchase.
To determine the better option, we need to calculate the present worth (PW) of each loader and compare them. Loader 1 has a useful life of seven years, and Loader 2 has a useful life of five years.
Both loaders have a salvage value of $10,000 at the end of their respective lifespans.
For Loader 1, the initial cost is $150,000, and the annual profit is $20,000.
Using the MARR of 20%, we can calculate the annual equivalent worth (AE) of the annual profit using the formula AE = (Annual Profit - Salvage Value) / (1 + MARR)^n, where n is the number of years. Substituting the values, AE1 = ($20,000 - $10,000) / \((1 + 0.20)^7\)= $9,090.91.
For Loader 2, the initial cost is $110,000, and the annual profit is also $20,000. Similarly, calculating the AE, we get AE2 = ($20,000 - $10,000) / (1 + 0.20)^5 = $10,909.09.
To find the PW, we multiply the AE by the appropriate factor: PW = AE * (1 + MARR)^n. For Loader 1, PW1 = \($9,090.91 * (1 + 0.20)^7\) = $53,527.19. For Loader 2, PW2 = $10,909.09 * (1 + 0.20)^5 = $55,114.80.
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the net effect of most of franklin roosevelt's early foreign policy moves was that
The net effect of most of Franklin Roosevelt's early foreign policy moves was to remove the United States from a position of isolationism and to actively intervene in global affairs.
Franklin D. Roosevelt was the United States' thirty-second president. Before he became president in 1933, the United States had chosen to isolate itself from global events after World War I. Roosevelt was elected to three presidential terms and, with his New Deal and foreign policy interventions, transformed the role of the federal government during the Great Depression.
Roosevelt started taking a number of actions on foreign policy very early in his presidency. In 1933, he announced that the United States would cease participation in the London Economic Conference and seek to increase trade outside of Europe. He also recognized the Soviet Union in 1933 and extended diplomatic recognition to the Communist government.The United States would no longer be a country of isolationism as a result of Roosevelt's early foreign policy actions. As a result of Roosevelt's actions, the US would become increasingly engaged in global affairs, with Roosevelt at the helm.
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How do I find the cash flow coverage ratio?
Explanation:
There are a few different ways to calculate the cash flow coverage ratio formula, depending on which cash flow amounts are to be included. A general measure of the company’s ability to pay its debts uses operating cash flows and can be calculated as follows:
Cash flow coverage ratio = $80,000,000 / $38,000,000 = 2.105Cash flow coverage ratio = ($64,000,000 + $4,000,000 + $8,000,000) / $38,000,000 = 2QALYs are short for Quality Adjusted Life Years. These were created in order to give life's quality and quantity a measured value. They were employed to make an attempt at evaluating the worth of various health measures. A long life of decreasing quality may be just as valuable as a brief life of high quality, according to a more recent emphasis on the value of "quantity" above "quality."(T/F).
False. A long life of declining quality could be just as useful as a short life of high quality, according to the supplied statement, which implies an emphasis on the value of "quantity" above "quality."
The statement is untrue, though. The Quality Adjusted Life Years (QALYs) approach does not place a higher priority on quantity than on quality. In order to evaluate the effectiveness of healthcare interventions, QALYs are a metric used in health economics and outcomes research. They assign weights to various health statuses, combining the quantity and quality of life. Instead than favouring one over the other, QALYs acknowledge that both the length and quality of life are significant criteria in assessing the impact of health policies.
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A college graduate has a Job with a monthly gross pay of 4000. He takes home less than 4000 because
A college graduate has a job with a monthly gross pay of 4000. He takes home less than 4000 because his net pay is lower than gross pay.
What do you mean by gross pay?Gross pay refers to the amount received by the employee without any tax deductions.
A college graduate has a job with a monthly gross pay of 4000. He takes home less than 4000 because his net pay is lower than the gross pay.
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The art of sales is never more obvious than in a late-night infomercial. Tell about one infomercial that you have seen and what tactics the salesperson used to get the audience to buy their product. See if you can find a link to it online and post the link with your comment as well. Did watching the salesperson make you want to buy? Do you think you would be able to do the same marketing job as the salesperson?
(HELP FAST DUE IN 15 MINUTES)
The informercial that have been used in the solution would be the :As seen on TV " informercial
What is the message in the informercial?One of the most popular infomercial products is the "As Seen on TV" range of products. These infomercials use a variety of tactics to sell their products, including:
Highlighting the problem: The infomercial starts by showing the problem that the product solves, such as a cluttered kitchen or aching back.
Demonstrating the product: The product is then demonstrated, showing how easy it is to use and how it solves the problem.
Emphasizing the benefits: The salesperson then emphasizes the benefits of the product, such as saving time and money, and improving your life.
Using testimonials: Real people are shown using the product and providing testimonials, which adds credibility to the product and the infomercial.
Creating a sense of urgency: The infomercial often includes a limited-time offer or a special discount, which creates a sense of urgency for the viewer to buy now.
These are just a few of the tactics used in infomercials, and their effectiveness varies depending on the product and the target audience. Ultimately, the success of an infomercial comes down to how well the product solves a real problem and how effectively the salesperson communicates that to the viewer.
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the rise and fall of real gdp over the course of the business cycle suggests that
The rise and fall of real GDP over the course of the business cycle suggests that economic activity experiences periods of growth and contraction.
1. Expansion: During the expansion phase, real GDP increases, which indicates a growing economy. Businesses witness higher demand for their goods and services, leading to increased production and employment opportunities. This results in higher incomes and consumer spending.
2. Peak: The peak phase is characterized by the highest level of real GDP in the cycle. The economy reaches its maximum output and businesses experience their highest levels of demand. However, this phase is typically followed by a downturn in economic activity.
3. Contraction: The contraction phase, or recession, occurs when real GDP starts to decrease. This signifies a decline in overall economic activity, leading to reduced demand for goods and services. Businesses may experience lower revenues and profitability, resulting in layoffs and cost-cutting measures.
4. Trough: The trough represents the lowest point in the business cycle. At this stage, real GDP reaches its minimum level before beginning to recover. Businesses are faced with tough market conditions and may struggle to survive. However, this phase also sets the stage for economic recovery and a new expansion phase.
In summary, the rise and fall of real GDP over the course of the business cycle suggests that economies experience fluctuations in growth and contraction. These cyclical changes impact businesses, employment, and consumer spending, requiring businesses and policymakers to adapt and respond to changing economic conditions.
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Suppose that Florida Bank has recently granted a loan of $2 million to Oyster Farms at LIBOR plus 0. 5 percent for six months. In return for granting Oyster Farms an interest-rate cap of 6. 5 percent on its loan, this bank has received from this customer a floor rate on the loan of 5 percent. Suppose that, as the loan is about to start, LIBOR declines to 4. 25 percent and remains there for the duration of the loan. How much (in dollars) will Oyster Farms have to pay in total interest on this six-month loan with floor and without floor?How much in interest rebates will Oyster Farms have to pay due to the fall in LIBOR?
Oyster Farms will have to pay a total interest of $95,000 on the six-month loan without the floor rate, and $100,000 with the floor rate. They will receive an interest rebate of $5,000 due to the fall in LIBOR.
Without the floor rate, Oyster Farms would have to pay interest at a rate of LIBOR plus 0.5 percent, which equals
4.25% + 0.5% = 4.75%.
With a loan amount of $2 million, the total interest payment without the floor rate would be
$2,000,000 * 4.75% = $95,000.
With the floor rate of 5 percent, Oyster Farms would have to pay interest at a rate of 5 percent, regardless of the decline in LIBOR to 4.25 percent. Again, with a loan amount of $2 million, the total interest payment with the floor rate would be
$2,000,000 * 5% = $100,000.
Since LIBOR declined, Oyster Farms will receive an interest rebate due to the fall in LIBOR. The difference between the interest payment without the floor and the interest payment with the floor is
$100,000 - $95,000 = $5,000.
Therefore, Oyster Farms will receive an interest rebate of $5,000.
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A company has an EPS of $3.60, a book value per share of $36.36, and a market/book ratio of 1.2x. What is its P/E ratio? The stock price should be rounded to the nearest cent. Do not round intermediate calculations. Round your answers to two decimal places. ___ x
The P/E ratio is 10.00x. It is calculated by dividing the stock price ($43.63) by the earnings per share ($3.60), indicating the market's valuation of the company's earnings.
The P/E ratio (Price-to-Earnings ratio) is calculated by dividing the stock price by the earnings per share (EPS). Given that the EPS is $3.60, we need to find the stock price.
The market/book ratio is given as 1.2x, which indicates that the market price per share is 1.2 times the book value per share. The book value per share is $36.36. Therefore, the stock price can be calculated as:
Stock price = Market/book ratio * Book value per share
Stock price = 1.2 * $36.36 = $43.63
Now, we can calculate the P/E ratio by dividing the stock price by the EPS:
P/E ratio = Stock price / EPS
P/E ratio = $43.63 / $3.60 ≈ 10.00x
Therefore, the P/E ratio of the company is 10.00x.
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journal entries
sold goods costing Rs. 15000 for Rs.5000 profit
Answer:
sales cr profit cash dr
In monopolistically competitive industries, small stores with high prices can compete with larger stores by:_______.
In monopolistically competitive industries, small stores with high prices can compete with larger stores by differentiating themselves through unique products or services, creating a niche market, and leveraging personalized customer experiences.
Firstly, small stores can offer unique and specialized products that are not readily available in larger stores. By curating a distinct selection of goods, these stores can attract customers who are willing to pay a premium for the exclusivity and quality they offer. This strategy allows them to differentiate themselves from larger stores that typically have a broader but more standardized product range. Secondly, small stores can target specific customer segments and create a niche market. By focusing on a particular customer need or preference, they can develop a loyal customer base that values the specialized expertise and personalized attention they receive. This niche strategy enables small stores to compete effectively, as customers may be willing to pay higher prices for the tailored experience and individualized service. Lastly, small stores can emphasize the importance of customer relationships and offer exceptional customer experiences. By providing personalized assistance, knowledgeable staff, and a welcoming atmosphere, they can foster strong connections with customers. These relationships build customer loyalty and encourage repeat business, even in the face of higher prices compared to larger stores.
In summary, small stores in monopolistically competitive industries can compete with larger stores by offering unique products, targeting niche markets, and providing personalized customer experiences. These strategies allow them to differentiate themselves and justify higher prices based on the added value they provide to their customers.
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