Answer:
C.international trade
Explanation:
In business, resources are tangible materials used in the production process. Natural resources are valuable materials found beneath, above, or on the earth's surface. These materials are naturally occurring and are distributed unevenly across the globe. They include Minerals, forests, fertile lands, water, oil and gas, plants, and animals.
Some resources, such as minerals and water, become raw materials, while others, such as land, facilitate the production process. Because resources are unevenly distributed, regions with plenty can use them to produce goods and services and sell to areas with scarcity. No single region has the resources it requires. International trade makes it possible for regions to sell what they have in plenty and buy what they luck.
Answer:
The average cost will be "$201". The further explanation is given below.
Explanation:
At May 31, FIFO LIFO Average cost
The ending inventory $220 $180 $201
Going to end Inventory Computation together under Quarterly inventory management system will be:
At $11 = $220
At $9 = $180
$10.06 = $201.2 i.e $201.
The problem or opportunity that requires a business decision on the part of the decision maker is called a management dilemma .
Management dilemma is the problem or opportunity that has emerged and requires to be resolve through a business decision. Management dilemmas are usually as a result of rising costs, high turnover rates, increasing negative perception, and reduced sales.
Dilemma management is the process of addressing complicated problems and resolving them in a systematic manner. To do this, it is important to keep the following dilemma management framework in mind.
Dilemmas can stem from a lack of foresight and preparation or from something completely out of your control. The original dilemma opposed to the modern dilemma is the controversy of freedom.
The correct answer is management dilemma.
Learn more about management dilemma, refer:
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Answer:
A. management dilemma
Explanation:
The problem or opportunity that requires a business decision on the part of the decision maker is called a management dilemma.
Answer:
Pension liability at December 31, 2017 is ($229,700)
Explanation:
Projected benefit obligation $561,600
Less: Plan assets $331,900
Pension liability at December 31, 2017 -$229,700
A call bond option is termed as the option that implies the bondholder the right to purchase the bonds at the prevailing price in the market. A buyer of a bond call option in the secondary market forecasts a drop in investment substantial rise in bond prices.
The correct option is a. I, II, and III only
Option a. I, II, and III only is correct because The contract value will decline as it reaches maturation because it will become less unpredictable.
The goal of purchasing a call option is to benefit if the price of the underlying stock rises. The attractiveness of the callable bond falls as the price of bitcoin declines, and the worth of the call option reduces as well.
The exercise price is the price where the individual who acquires a call option will be able to acquire the underlying shares. If this price is too high, the benefit from buying the stock at maturity will be too little, diminishing the value of the specified call option.
To know more about the listed call option, refer to the link below:
Answer: a. I, II, and III only
Explanation:
The exercise price refers to the amount that the person who buys the call option will get to buy the underlying stock at. If this price is high, the profit from buying the stock at maturity will be less so the value of the listed call option reduces.
As the contract approaches maturity, the value will decrease because it will be less volatile as it approaches maturity.
The purpose of buying a call option is so that a profit can be made if the underlying stock increases in value. If the stock decreases in value, the allure of the call option decreases so therefore will the value.
Answer:
The incremental costs of making and buying component RX5 is $100,000
Explanation:
For computing the increment cost of making and buying component RX5, first we have to compute the cost of making and buying component RX5 separately.
Cost of making includes:
Direct Material = 50,000 × $5 = $250,000
Direct Labor = 50,000 × 9 = $450,000
Variable Overhead cost = 50,000 × 10 × 30% = $150,000
So, total cost of making = Direct material cost + direct labor cost + variable overhead cost
= $250,000 + $450,000 + $150,000
= $850,000
Now, the cost of buying component is equals to
= units × RX5 per unit
= 50,000 × $19
= $950,000
So, the incremental costs of making and buying component RX5 is equals to
= cost of making - cost of buying component
= $950,000 - $850,000
= $100,000
Hence, the incremental costs of making and buying component RX5 is $100,000
The incremental cost of making component RX5 is $5.00 per unit.
To calculate the incremental costs of making and buying component RX5, we need to compare the cost of making the component in-house versus buying it from an outside supplier. The incremental cost of making the component is the difference between the current cost per unit to manufacture and the cost offered by the supplier. Here's how to calculate it:
The incremental cost of making component RX5 is $5.00 per unit.
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Answer:
(a) What is the yield to maturity (annual compounding) on the bond?
Yield to maturity (YTM) = (face value / market price)¹/ⁿ - 1
YTM = ($1,000 / $800)⁰°² - 1 = 0.0456 or 4.56%
(b) Assume the yield to maturity on comparable zeros increases to 7% immediately after purchasing the bond and remains there. Calculate your annual return (holding period yield) if you sell the bond after one year.
holding period yield = (end of period value - initial value) / initial value
initial value = $800
end of period value = ?
to determine the end of period value we must solve:
7% = ($1,000 / ?)⁰°²⁵ - 1
1.07 = ($1,000 / ?)⁰°²⁵
1.07⁴ = $1,000 / ?
? = $1,000 / 1.3108 = $762.90
holding period yield = ($762.90 - $800) / $800 = -4.64%
(c) Assume yields to maturity on comparable bonds remain at 7%, calculate your annual return if you sell the bond after two years.
1.07³ = $1,000 / ?
? = $1,000 / 1.225 = $816.30
holding period yield = ($816.30 - $800) / $800 = 2.04%
annualized return = (1 + total return)¹/ⁿ - 1 = (1 + 0.0204)¹/² - 1 = 1.01%
(d) Suppose after 3 years, the yield to maturity on similar zeros declines to 3%. Calculate the annual return if you sell the bond at that time.
1.03² = $1,000 / ?
? = $1,000 / 1.0609 = $942.60
holding period yield = ($942.60 - $800) / $800 = 17.83%
annualized return = (1 + total return)¹/ⁿ - 1 = (1 + 0.1783)¹/³ - 1 = 5.62%
This business related question deals with the calculation and understanding of yield to maturity and holding period yield related to a zero-coupon Treasury bond. The yield to maturity is the estimated total return if a bond is held until it matures. The holding period yield is dependent on the current market conditions and may alter if the bond is sold before it reaches its maturity.
To answer these questions, you first need to understand key concepts related to bonds. A zero-coupon bond is a bond that doesn't give regular interest payments to the investor. Instead, the investor purchases the bond for a price lower than its face value, then receives the face value when the bond reaches maturity. The difference represents the investor's profit.
Let's handle each sub-question in the context of a five-year zero-coupon Treasury bond that you bought for $800 but has a face value of $1000:
a) The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. Yield to maturity is expressed annually as a percentage. In this case, the equation to solve for yield to maturity is: $1,000 = $800*(1+YTM)^5. Normally, it's impossible to directly solve this equation for YTM (without using calculators or software with financial functions), making it a more complex business topic.
b & c) The holding period yield is different than the yield to maturity and takes into account the current market conditions. In this scenario, if interest rates were to rise to 7%, the bond's value would decrease, impacting your returns if you decided to sell before maturity.
d) The same concept applies if yield to maturity changes after 3 years or at any other time before maturity. An alteration in the market interest rates would affect the price at which you could sell your bond, hence influencing your annual return.
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