Answer:
a. True
Explanation:
The system of the bank contains the customers data i.e. name and the address by which they could be identified also their accounts are identified. Each and every account has the balance option also it involved two types of accounts i.e. saving that provides the rate of interest and the other one is for investment that used to purchase the stocks
Hence, the given statement is true
Answer:
A monopolist does not have a supply curve because price and quantity are decided at the same time.
Explanation:
A supply curve is generally upward sloping showing a direct relationship between the price level and quantity supplied. In case of a perfectly competitive market, the demand curve is a horizontal curve, showing marginal; revenue and average revenue. The firm here is a price taker and decides the quantity to be supplied according to the price level. The firm is able to maximize profit at the level of output where the price is equal to marginal cost.
However, in case of a monopoly, the firm is a price maker. There is no unique relation between price and quantity. The price and quantity to be supplied are determined at the same time at the point where marginal revenue is equal to marginal cost.
Unlike a competitive firm, a monopolist does not have a supply curve since they set both their price and production quantity. They use their marginal revenue and marginal cost to determine these, setting their price at the highest amount consumers are willing to pay for their profit-maximizing quantity. A monopolist's marginal revenue is generally less than their product's price.
Contrary to a competitive firm, a monopolist does not have a defined supply curve because they determine both their price and production quantity. This ability is due to the monopolist's unique position as the sole supplier in the market. However, they don't set these arbitrarily; their decisions are guided by their marginal revenue—the additional income from selling one more unit—and their marginal costs. Where these two meet is their profit-maximizing quantity, and the highest price consumers are willing to pay for that quantity becomes the price. It's essential, however, to remember that a monopolist's marginal revenue is typically less than the price they charge for their product, which is why we say they don't have a supply curve.
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b. $60.
c. $30.
d. $36.92
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Estimated manufacturing overhead= 960,000
Estimated number of hours= 32,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 960,000/32,000= $30 per direct labor hour
Now, we can allocate to each unit of Planter:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 30*2= $60
Answer:
The maximum amount that could be paid for the antique pitcher is $13.93 as shown by the workings in the explanation section below.
Explanation:
Since the maximum price that could be charged for the antique pitcher is $17,the most that could be paid in purchasing it, is given by the below formula:
selling price * 100% / (100% + Markup%)
=$17*100%/(100%+22%)
=$13.93
From the foregoing analysis,the markup in dollar terms is $17-$13.93=$3.07 which represents 22% of the cost price of the antique pitcher.
Answer:
they are the interface between the brand and the customer
Explanation:
Based on the information provided within the question it can be said that the personnel in SuperCuts are the interface between the brand and the customer. The personnel are the ones that interact on a daily basis with the shoppers and provide all the information that they need regarding the SuperCut's brand in order to generate sales.
Answer:
a. $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.
Explanation:
Note: This question is not complete as part 'a' of the requirement is omitted. The complete question with the part 'a' of the requirement is therefore provided before answering the question as follows:
Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses.
Year 1 $ (12,000) Net Section 1231 loss
Year 2 10,500 Net Section 1231 gain
Year 3 (14,000) Net Section 1231 loss
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Explanation of the answer is now provided as follows:
When section 1231 losses exceed section 1231 profits in the prior five years, the excess loss (unapplied loss) is applied against the current year's section 1231 gain.
The amount that is reported as ordinary income is the amount of the loss that is applied against the current year's section 1231 gain.
Long-term capital gain is the excess of the current year's section 1231 gain over the the recaptured section 1231 loss from the prior five years.
You have to start with the earliest year to apply section 1231 losses from the previous five years to the current year's section 1231 gain.
Therefore, we have:
a. In year 4, Roof sold one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
As a result of the loss from the previous year that is applied to the extent of $7,500, the whole of the $7,500 net Section 1231 gain will be recorded as ordinary gain.
Therefore, $0 will be reported as capital gain, while $7,500 will be reported as ordinary gain.
b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Unapplied losses in previous years can be calculated as follows:
Details Amount ($)
Net Section 1231 loss in Year 3 (14,000)
Net Section 1231 gain in Year 4 7,500
Net Section 1231 loss in Year 1 (12,000)
Net Section 1231 gain in Year 2 10,500
Unapplied losses in previous years (8,000)
Because there are unapplied losses of $8,000 from previous years, $8,000 will be reported as ordinary gain.
Therefore, the amount to be reported as capital gain can be calculated as follows:
Amount to be reported as capital gain = Gain in Year 5 – Amount to be reported as ordinary gain = $9,000 - $8,000 = $1,000
Therefore, $1,000 will be reported as capital gain, while $8,000 will be reported as ordinary gain.
Rating
Default Risk Premium
U.S. Treasury —
AAA 0.60%
AA 0.80%
A 1.05%
BBB 1.45%
National Transmissions Corp. issues thirteen-year, AA-rated bonds. What is the yield on one of these bonds? (Hint: Disregard cross-product terms; that is, if averaging is required, use an arithmetic average.)
10.58%
11.78%
6.00%
2. Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true?
A) The yield on a AAA-rated bond will be lower than the yield on a AA-rated bond.
B) The yield on a AAA-rated bond will be higher than the yield on a BB-rated bond.
Answer:
Answer for the question:
"1. The real risk-free rate (r*) is 2.80% and is expected to remain constant into the future. Inflation is expected to be 6.80% per year for each of the next two years and 5.60% thereafter.
The maturity risk premium (MRP) is determined from the formula: 0.10 x (t – 1)%, where t is the security’s maturity. The liquidity premium (LP) on all National Transmissions Corp.’s bonds is 1.20%. The following table shows the current relationship between bond ratings and default risk premiums (DRP):
Rating
Default Risk Premium
U.S. Treasury —
AAA 0.60%
AA 0.80%
A 1.05%
BBB 1.45%
National Transmissions Corp. issues thirteen-year, AA-rated bonds. What is the yield on one of these bonds? (Hint: Disregard cross-product terms; that is, if averaging is required, use an arithmetic average.)
10.58%
11.78%
6.00%
2. Based on your understanding of the determinants of interest rates, if everything else remains the same, which of the following will be true?
A) The yield on a AAA-rated bond will be lower than the yield on a AA-rated bond.
B) The yield on a AAA-rated bond will be higher than the yield on a BB-rated bond."
is explained in the attachment.
Explanation:
The yield on National Transmissions Corp.'s thirteen-year, AA-rated bond is 12.20%. Additionally, a AAA-rated bond will have a lower yield than a AA-rated bond due to lower default risk.
To calculate the yield on the bond, we take into account the real risk-free rate (r*), the inflation rate, the default risk premium (DRP), the maturity risk premium (MRP), and the liquidity premium (LP). Note that the inflation rate is given for two different periods, so we take the average of the two (6.80% and 5.60%).
The formula to calculate yield is: r = r* + Inflation rate + MRP + DRP + LP
Hence, the yield on the bond = 2.80% + 6.20% + 1.20% + 0.80% + 1.20% = 12.20%.
For part 2 of the question, the statement A) is correct. The yield of a AAA-rated bond will be lower than that of a AA-rated bond because the default risk of AAA-rated bond is less, hence a lower default risk premium is required.
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