a swiss bank converted 1 million swiss francs to euros to make a euro loan to a customer when the exchange rate was 1.85 francs per euro. the borrower agreed to repay the principal plus 3.75 percent interest in one year. the borrower repaid euros at loan maturity and when the loan was repaid the exchange rate was 1.98 francs per euro. what was the bank's franc rate of return?

Answers

Answer 1

the bank's franc rate of return is -71.60%.

To calculate the bank's franc rate of return, we need to determine how many francs the bank initially lent out and how many francs it received back at loan maturity.

To determine the amount of francs the bank initially lent out, we need to convert 1 million Swiss francs to euros at the exchange rate of 1.85 francs per euro:

1,000,000 CHF ÷ 1.85 CHF/EUR = 540,540.54 EUR

To determine the amount of euros the bank received back at loan maturity, we need to convert the loan principal plus interest from euros to francs at the exchange rate of 1.98 francs per euro:

(540,540.54 EUR x 1.0375) ÷ 1.98 CHF/EUR = 283,972.98 CHF

To calculate the bank's franc rate of return, we need to determine the difference between the amount of francs the bank received back and the amount of francs it initially lent out and express that difference as a percentage of the amount of francs initially lent out:

(francs received back - francs lent out) ÷ francs lent out x 100%

= (283,972.98 CHF - 1,000,000 CHF) ÷ 1,000,000 CHF x 100%

= -71.60%

Therefore, the bank's franc rate of return is -71.60%. This means that the bank lost 71.60% of the amount of francs it initially lent out when the loan was repaid.

Learn more about the bank's rate of return:

https://brainly.com/question/2142624


Related Questions

an administered vertical marketing system is best represented by which of the following programs? group of answer choices everett clinic, which operates more than 25 clinic sites beyond its main location in everett, washington teladoc, a web-based provider of physician consults the urgent care center at o'hare, which is run by the university of illinois health system the hospital for special surgery in new york, which operates facilities in florida and on long island

Answers

This example demonstrates a healthcare organization overseeing and coordinating various facilities under one centralized administration, fitting the concept of an administered vertical marketing system.

An administered vertical marketing system is best represented by the hospital for special surgery in New York, which operates facilities in Florida and on Long Island. This is because an administered vertical marketing system involves a single entity (in this case, the hospital for special surgery) that owns multiple levels of the distribution chain, such as manufacturing, distribution, and retailing.

In this case, the hospital for special surgery owns and operates facilities in multiple locations, making it an example of an administered vertical marketing system. The Everett Clinic, Teladoc, and the urgent care center at O'Hare are not examples of administered vertical marketing systems.

Read more about organization here:https://brainly.com/question/19334871

#SPJ11

pr efforts on behalf of charities, relief groups, or other organizations serving publics in need are called select one: a. do-good pr. b. cause marketing. c. viral pr. d. lobbying.

Answers

The correct answer is b. Cause marketing.

Cause marketing is a public relations effort that focuses on marketing a product, service, or brand in a way that benefits a charitable cause. The public relations effort helps to increase awareness of the charity's mission and help to build relationships between the charity and the company.

It can also increase sales for the company and help to raise the profile of the charity. Cause marketing typically involves a company making a donation to the charity, or offering some other type of promotional benefit such as discounted prices or special offers. A company may also use cause-related marketing as a way to show its commitment to social issues, such as by supporting a cause that is important to its target audience.

Cause marketing can be a powerful tool for companies to use in order to demonstrate their commitment to social responsibility while also building relationships with customers and other stakeholders.

Know more about stakeholders here

https://brainly.com/question/30463383?referrer=searchResults

#SPJ11

for 2019, Goodwater company reported 2.74 of earnings per shareof common stock. During 2020, the firm had a 5% common stockdividend. The 2019 earnings per share to be reported in the annualreport o f 2020A. 1.70B. 2.61C. 1.90D. 1.82

Answers

The 2019 earnings per share to be reported in the 2020 annual report is 2.61. Therefore, the correct option is B.

To find the adjusted 2019 earnings per share to be reported in the annual report of 2020, we need to consider the impact of the 5% common stock dividend on the 2019 earnings per share.

In order to calculate the 2019 earnings per share, follow these steps:

1. Determine the 2019 earnings per share: 2.74

2. Calculate the impact of the 5% common stock dividend: 2.74 * 0.05 = 0.137

3. Subtract the impact of the dividend from the original earnings per share: 2.74 - 0.137 = 2.603

Therefore, The 2019 earnings per share to be reported in the annual report of 2020 is approximately 2.61 which corresponds to the option B.

Learn more about Earnings per share:

https://brainly.com/question/30074795

#SPJ11

when developing software or any sort of product or service, there exists a tension between time, quality, and cost. this is referred to as the .

Answers

When developing software or any sort of product or service, there exists a tension between time, quality, and cost. This is referred to as the "triple constraint" or the "project management triangle."

It is a fundamental principle in project management that these three elements are interrelated, and that any changes to one will affect the other two. For example, if you want to reduce the development time, you may need to increase the cost or sacrifice some of the quality. Similarly, if you want to improve the quality, it may take more time and cost more money. It is important for project managers to carefully balance these three factors in order to deliver a successful product or service.

Software is a set of instructions, data or programs used to operate computers and execute specific tasks. It is the opposite of hardware, which describes the physical aspects of a computer. Software is a generic term used to refer to applications, scripts and programs that run on a device.

to know more about software refer here

https://brainly.com/question/15937118#

#SPJ11

suppose a stock had an initial price of $35 per share, paid a dividend of $1.00 per share during the year, and had an ending share price of $48. compute the percentage return.

Answers

A stock with an initial price of $35 per share, paid a dividend of $1.00 per share during the year the percentage return will be  40%.

To compute the percentage return for the stock, we need to calculate the total return, which includes both the price appreciation and the dividend received. The formula for total return is:

Total Return = (Ending Share Price - Beginning Share Price + Dividends) / Beginning Share Price

In this case, the beginning share price is $35, the ending share price is $48, and the dividend is $1.00 per share. Plugging these values into the formula, we get:

Total Return = ($48 - $35 + $1) / $35 = $14 / $35 = 0.4 or 40%

Therefore, the percentage return for the stock is 40%.

Learn more about percentage return at:

brainly.com/question/31325835

#SPJ4

Your broker charges $0.0029 per share per trade. The exchange charges $0.0173 per share per trade for removing liquidity and credits $0.0155 per share per trade for adding liquidity. The current best BID price for stock XYZ is $82.89 per share, while the current best ASK price is $82.90 per share. You post an order to buy XYZ at the current best BID price and wait. Shortly after, the best BID and ASK prices move lower (down) by one cent each. Your buy order is executed. Immediately, you post an order to sell XYZ at the new best BID price, and your sell order is executed. What will be your net loss per share to buy and sell XYZ after considering the commissions and any exchange fees or credits?

Answers

Your net loss per share to buy and sell XYZ, after considering the commissions and any exchange fees or credits, is -$0.0176.

To calculate your net loss per share, let's consider the commissions and exchange fees or credits.


1. Buying XYZ:
- Execution price: $82.89 per share
- Broker commission: $0.0029 per share
- Exchange fee (adding liquidity): -$0.0155 per share (credit)


2. Selling XYZ:
- Execution price: $82.88 per share (since prices moved down by one cent)
- Broker commission: $0.0029 per share
- Exchange fee (removing liquidity): $0.0173 per share


Now, let's calculate the net loss per share:


Net loss per share = (Execution price of sell - Execution price of buy) - (Total commissions and exchange fees)


Net loss per share = ($82.88 - $82.89) - [($0.0029 + $0.0029) + ($0.0173 - $0.0155)]
Net loss per share = -$0.01 - ($0.0058 + $0.0018)
Net loss per share = -$0.01 - $0.0076


Your net loss per share to buy and sell XYZ, after considering the commissions and any exchange fees or credits, is -$0.0176.

Learn more about net loss: https://brainly.com/question/12112036

#SPJ11

A company issues bonds with a par value of $1,000 and a maturity of 10 years. The bonds pay interest based upon an annual fixed coupon rate of 6%. Eight years pass since the issuance date and the going rate in the market for similar bonds is 8%. What price should an investor be willing to pay for one bond eight years after the issuance date?

Answers

Okay, here are the steps to solve this problem:

1) The par value of the bond is $1,000. This is the face value that will be paid at maturity.

2) The coupon rate is 6% per year. Since the bonds mature in 10 years, the total coupon payment over the life of the bond will be 6% * $1,000 * 10 = $600.

3) 8 years have already passed. So there are 2 years left until maturity. The remaining coupon payments will be $600 * 2/10 = $120.

4) The current market rate for similar bonds is 8%. So the required return for a new bond is 8%. We want to know the price that will generate an 8% yield over the last 2 years.

5) Calculate the future value of $120 received in 2 years at an 8% rate. This comes out to be $120 * (1.08)^2 = $129.63.

6) To generate $129.63 in 2 years with $1,000 par value at maturity, we need a price of $770. This ensures an 8% yield over the last 2 years of the bond.

So in summary, an investor should be willing to pay about $770 for one bond eight years after issuance to get an 8% yield over the remaining two years until maturity. Let me know if you have any other questions!

Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $250 million. Annual upkeep is expected to amount to $800,000. The turf will have to be re- placed every 10 years at a cost of $950,000. Painting every 5 years will cost $75,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at i = 8% per year?

Answers

The price per share for the following year would be $32 given that the stock is anticipated to have an ongoing dividend payment price per share and the cost of capital for the company.

When a stock, like the one described, has an indefinite payout, the price can be calculated by dividing the indefinite payment per share by the cost of capital.

10% interest rate, or 0.10. Base cost present value is equal to $500 million, or $500,000,000.

$1,000,000/r

= $1,000,000 / 0.10

= $10,000,000 is the present value of annual maintenance.

Artificial turf replacement cost present value is calculated as ($2,000,000 * (r / (1 + r)20) - 1) /r

= ($2,000,000 (0:10 / (1 + 0.10)20)-1) / 0.10

= $349,192.50

($250,000* (r/ (1+ r5)-1)/

r= ($250,000* (0.10 / (1+ 0.105)-1) / 0:10)

= $409,493.70 Present value of the painting

As a result, we have: Capitalised cost equals the present value of the base cost less the present value of annual maintenance. Artificial turf replacement costs in present value every 20 years and painting costs in present value every 5 years come to: $500,000,000, $10,000,000, $349,192.50, $409,493.70, or $510,758,686.20.

To know more about price per share visit:

https://brainly.com/question/29145835

#SPJ4

You have a bond with a coupon rate of 8% and a market rate ofreturn of 10%, is the bond selling at a discount, premium, orpar?

Answers

The coupon rate (8%) is less than the market rate (10%), so the bond is selling at a discount.

Is the bond selling at a discount, premium, orpar?

You have a bond with a coupon rate of 8% and a market rate of return of 10%. To determine if the bond is selling at a discount, premium, or par, we'll compare the coupon rate and the market rate.

Compare the coupon rate and market rate
- Coupon rate: 8%
- Market rate: 10%

Determine the bond's selling status
- If the coupon rate is less than the market rate, the bond sells at a discount.
- If the coupon rate is equal to the market rate, the bond sells at par.
- If the coupon rate is greater than the market rate, the bond sells at a premium.

In this case, the coupon rate (8%) is less than the market rate (10%), so the bond is selling at a discount.

Learn more about market rate.

brainly.com/question/29352803

#SPJ11

4) For mutual funds, a Balanced Growth and Income Fund contain both growth stocks and stocks that pay high dividends. This type of fund__________________________________________.
a) focuses on firms that pay a high level of dividends with less focus on growth.
b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.
c) focuses on firms that are more established than small-cap firms but may have less growth potential.
d) focuses on stocks that have potential for above-average growth.
e) attempts to mirror the movements of an existing equity index.

Answers

For mutual funds, a Balanced Growth and Income Fund contain both growth stocks and stocks that pay high dividends. This type of fund b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.

Balanced Growth and Income Funds typically invest in large-cap stocks that are more established than small-cap firms but still have some growth potential. These funds may also invest in bonds or other fixed-income securities to further diversify the portfolio and reduce risk.

The main advantage of a Balanced Growth and Income Fund is that it offers investors both growth potential and regular income. The fund distributes dividends periodically, which can provide a steady stream of income for investors. At the same time, the fund also offers potential for an increase in the fund's value through investments in growth stocks.

Overall, a Balanced Growth and Income Fund can be a good option for investors who want a balanced portfolio of growth and income investments. However, it's important to carefully consider the fund's investment objectives, fees, and historical performance before investing.

Therefore, the correct answer is b) distributes dividends periodically, while offering more potential for an increase in the fund’s value.

Learn more about Balanced Growth here: https://brainly.com/question/29846283

#SPJ11

5. what is the npv of the project under the wacc approach? under the apv approach? 6. how sensitive are your estimates to your assumptions? do you recommend undertaking the project?

Answers

The NPV of the project using the WACC methodology is $58,028.68.Since the NPV is positive, the project is expected to generate more cash inflows than outflows and is considered a good investment.

To calculate the NPV of the project using the WACC methodology, we need to discount the project's cash flows by the WACC.

First, we need to calculate the cost of equity:

K_e = R_f + β(R_m - R_f)

Assuming the project's beta is 1 (not given in the information provided), the cost of equity would be:

K_e = 2% + 1(6%) = 8%

Next, we need to calculate the WACC:

WACC = (E/V x K_e) + (D/V x K_d) x (1 - T_c)

where:

E = market value of equity

D = market value of debt

V = total value of the firm (E + D)

K_d = cost of debt

T_c = corporate tax rate

We are given that the debt-to-equity ratio is 3, so:

D/E = 3/1

D = 3E

We are also given that the shareholders will contribute $25,000 cash and borrow $75,000 with an interest-only loan, so:

E = $25,000

D = $75,000

V = $100,000

K_d = 10%

T_c = 34%

Plugging in the values, we get:

WACC = (0.25 x 8%) + (0.75 x 10%) x (1 - 0.34)

WACC = 11.20%

Now we can calculate the project's NPV using the WACC methodology:

CF0 = -$100,000 (cost of equipment)

CF1-CF4 = $39,800 (given)

CF5 = $43,100 ($39,800 + $5,000 salvage value)

NPV = (-$100,000) + ($39,800 / (1 + 11.20%) + ($39,800 / (1 + 11.20%)+ ($39,800 / (1 + 11.20%) + ($39,800 / (1 + 11.20%) + ($43,100 / (1 + 11.20%)

NPV = $58,028.68

Learn more about cash inflows

https://brainly.com/question/31086720

#SPJ4

Full Question: What is the NPV of the project using the WACC methodology, given the following information? i = rdebt = 10% OCFO = -$100,000 Ku = rassets = 15% OCF1-4 = $39,800 = 25,000 x ($5 - $3) x (1 -0.34) + $20,000 x 0.34 Kl = requity = 24.9% OCF5 = $43,100 = $39,800 + $5,000 x (1 – 0.34) K= WACC = 11.20% Tax rate = 34% Debt-to-equity ratio = 3 Risk-free rate = 2% The 5-year project requires equipment that costs $100,000. If undertaken, the shareholders will contribute $25,000 cash and borrow $75,000 with an interest-only loan with a maturity of 5 years and annual interest payments. The equipment will be depreciated straight-line to zero over the 5-year life of the project. There will be a pre-tax salvage value of $5,000. There are no other start-up costs at year 0. During years 1 through 5, the firm will sell 25,000 units of product at $5; variable costs are $3; there are no fixed costs. $58,028.68 $49,613.03 $102,727.55 $48,300.47

the interstate commerce act outlawed group of answer choices none of these choices attempted to control business trusts. outlawed the restraint of trade between states. extended subsidies to railroads. unfair pricing activities on the part of railroads

Answers

The Interstate Commerce Act  A. outlawed unfair pricing activities on the part of railroads.

This legislation was enacted in 1887 in response to growing public concerns about the monopolistic practices and discriminatory rates imposed by railroads on shippers. The Act aimed to ensure fair and transparent pricing by prohibiting practices such as rate discrimination and pooling arrangements. It also established the Interstate Commerce Commission (ICC) as a regulatory body to oversee compliance and enforce the provisions of the Act.

The Interstate Commerce Act marked a significant turning point in American business regulation, as it represented one of the first major attempts by the federal government to exert control over private corporations. However, it did not directly address issues related to business trusts (C) or restraint of trade between states (B), and it did not extend subsidies to railroads (D). So, Therefore the correct option is (A) outlawed unfair pricing activities on the part of railroads.

The Question was Incomplete, Find the full content below :

The Interstate Commerce Act

A) outlawed unfair pricing activities on the part of railroads

B) outlawed the restraint of trade between states

C) attempted to control business trusts

D) extended subsidies to railroads

E) none of the above

Know  more about ICC here:

https://brainly.com/question/7206490

#SPJ11

a company trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. the trade-in allowance on the old computer is $1,200. what is the gain or loss, if any, on the trade-in of the old computer?

Answers

The company has a loss of $800 on the trade-in of the old computer. Therefore, the correct answer is option B. Loss of $2,800.

Calculating gain/loss on the trade-in of the old computer:

Calculate the book value of the old computer at the transaction date:

Book value of old computer = Cost of old computer - Accumulated depreciation

                                               = $5,000 - $3,000

                                               = $2,000

Calculate the gain or loss on the trade-in of the old computer:

Gain/Loss on trade-in = Trade-in allowance - Book value of old computer

                                    = $1,200 - $2,000

                                    = -$800

Therefore, the company has a loss of $800 on the trade-in of the old computer.

Complete Question:

A company  trades its old computer, which cost $5,000 and has accumulated depreciation at the transaction date of $3,000, for a new computer that costs $7,000. The trade-in allowance on the old computer is $1,200. What is the gain or loss, if any, on the trade-in of the old computer?

A. Gain of $2,800

B. Loss of $2,800

C. Gain of $800

D. Loss of $800

To learn more about book value visit:

https://brainly.com/question/23057744

#SPJ4

TII Question 10 of 10 -/3 View Policies Current Attempt in Progress Pharoah Manufacturing Company has been growing at a rate of 9 percent for the past two years, and the CEO expects the company to continue to grow at this rate for the next several years. The company paid a dividend of $1.50 this year. If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company's stock? (Round intermediate calculation and final answer to 2 decimal places, es 15.25.)

Answers

As a manufacturing company, Pharoah Manufacturing Company is expected to continue to grow at a rate of 9 percent for the next few years, which is good news for potential investors.

However, investors need to determine the maximum price they would be willing to pay for the company's stock based on their required rate of return, which in this case is 12 percent.

To calculate the maximum price, we can use the dividend discount model, which calculates the present value of future dividends. We can use the formula:

Maximum Price = Dividend / (Required Rate of Return - Growth Rate)

In this case, the dividend is $1.50, the required rate of return is 12 percent, and the growth rate is 9 percent.

Maximum Price = $1.50 / (0.12 - 0.09) = $50

Therefore, the maximum price that an investor would be willing to pay for Pharoah Manufacturing Company's stock is $50.

It is important to note that this calculation is based on the assumption that the company will continue to grow at a rate of 9 percent for the foreseeable future. Investors should also consider other factors such as the company's financial health, competition, and market trends before making any investment decisions.

To know more about  potential investors refer here:

https://brainly.com/question/30775027#

#SPJ11

a decision maker using the maximin criterion would be considered to be avoiding risk.T/F

Answers

True. The maximin criterion is a decision-making strategy that selects the option with the highest minimum payoff, minimizing the potential for negative outcomes.

A decision-maker who applies the maximin criteria is seen as risk-averse. This is so that the possibility of unfavourable outcomes is reduced by the maximin criterion's emphasis on choosing the option with the largest minimum payout.

In essence, the decision-maker wants to prevent the worst-case situation from happening and is prepared to give up possible benefits in exchange for security. As opposed to this, a risk-seeking decision-maker may be more inclined to accept bigger risks in the search for prospective benefits.

Learn more about decision-making:

https://brainly.com/question/27004710

#SPJ4

True. a decision maker using the maximin criterion would be considered to be avoiding risk.

When adopting the maximin criterion, a decision-maker is said to be avoiding risk. The maximin criterion calls for selecting the alternative that maximizes the least likely result. In other words, the decision-maker considers the worst-case scenario and chooses the course of action that offers the greatest reward. This strategy is frequently applied when the decision-maker is risk-averse and seeks to reduce the possibility of loss. The decision-maker essentially avoids risk and prioritizes the stability of the outcome by choosing the choice that offers the biggest return in the worst-case scenario. Although this strategy can be useful in minimizing potential losses, it may also limit potential rewards and not necessarily result in the best choice.

learn more about  avoiding risk here:

https://brainly.com/question/17328084

#SPJ11

Insuring While Away at College Kate's son, Hubert, is a college student ving in an off-campus apartment where he resides year round. He owns an expensive computer and wants to make sure the full value is insured. Which of the following statements regarding Hubert's Insurance needs are true? Check all that apply.a. Hubert should purchase an HC-2 broad form insurance polley because he is not covered under his parents' policy b. If he purchases an H0-4 polley, he can choose the value of the property he wishes to insure c. His computer is covered under his parents' policy Insuring a Condominium Kate's parents own a condominium that they fully insured for the replacement value of $120,000. Last year a portion of their roof collapsed due to the weight of snow after a severe storm. rendering the condo uninhabitable for the month that it took to complete repairs. Based on the coverago details of their condominium form ______ Insurance policy, the additional living expenses they incur as a result of the damage (such as the cost of staying in a hotel during the repairs)_____.

Answers

a. Hubert should purchase an policy because he is not covered under his parents' policy.

c. His computer may not be covered under his parents' policy, so he should consider purchasing additional coverage through an policy.

ships dedicated to the transport of petroleum products are called group of answer choices crude carriers. liquid barges. hague carriers. drugstore ships. dry-bulk carriers.

Answers

The correct answer is crude carriers. Ships that are dedicated to the transport of petroleum products are commonly referred to as crude carriers.

These are specialized vessels that are designed and equipped to transport crude oil from production areas to refineries or other destinations. Crude carriers are typically large ships with a capacity ranging from tens of thousands to hundreds of thousands of tons of crude oil. They are equipped with special tanks that can store and transport the crude oil without spilling or leaking. Crude carriers are also equipped with advanced safety systems and emergency equipment to ensure the safe transport of the cargo.
It is worth noting that there are other types of vessels that can transport liquid cargoes, including liquid barges and hague carriers. Liquid barges are small boats that are typically used for transporting petroleum products over shorter distances, such as within a port or along a river. Hague carriers, on the other hand, are specialized tankers that are designed to transport liquefied natural gas (LNG).
In contrast, drugstore ships and dry-bulk carriers are not typically used for the transportation of petroleum products. Drugstore ships are typically small boats that are used for transporting supplies and provisions to offshore oil rigs. Dry-bulk carriers, on the other hand, are designed to transport dry goods such as grains, coal, and ore. Overall, crude carriers remain the most common and important type of vessel for the transportation of petroleum products.

for more such question on transport

https://brainly.com/question/17257173

#SPJ11

which non-customers typically are aware of your product, but don't use it because either it's unacceptable, or they can't afford it?

Answers

The second-tier customers are aware of your product, but don't use it because either it's unacceptable, or they can't afford it

A set of potential consumers who are second tier customers are those who are aware of the product but do not utilise it either because they find it unsatisfactory or they cannot afford it. These clients could be somewhat interested in the goods, but they are unable or unwilling to purchase it at current price or under the present circumstances.

Due to this, businesses might need to modify their pricing and marketing plans in order to appeal to this segment of potential clients. This could entail making the product better to make it more desirable or cheaper to make it more accessible. Companies could also need to resolve issues and think about other marketing platforms or messaging. Businesses may grow revenues and their client base by focusing on second tier customers.

Read more about customers on:

https://brainly.com/question/15096946

#SPJ4

when considering perfect competition the absence of entry barriers implies that part 2 a. no firm can enter the industry. b. firms can enter but cannot get out of the industry easily. c. all firms will earn economic profit. d. firms can enter and leave the industry without serious impediments.

Answers

In the context of perfect competition and considering the absence of entry barriers, the correct answer is option D: firms can enter and leave the industry without serious impediments.

Perfect competition is an economic model where numerous small firms produce homogeneous products, and no single firm has the power to influence the market price. Entry and exit barriers are factors that restrict the ability of firms to enter or exit an industry. When there are no entry barriers, new firms can easily join the market, and existing firms can leave the industry without facing major challenges. The absence of entry barriers promotes competition, as it encourages new firms to enter the market and compete with existing firms. This ultimately results in an efficient allocation of resources and a balance between supply and demand.

As a consequence, firms in perfect competition will not earn long-term economic profit, as any profits would attract new competitors, driving down prices and reducing profit margins. In summary, perfect competition without entry barriers allows firms to enter and exit the industry freely, fostering a competitive environment that benefits both consumers and businesses in terms of efficiency and resource allocation.

For more such questions on competition

https://brainly.com/question/4190313

#SPJ11

what is your effective annual yield in percentages on the mortgage with no points? info copied below you have just bought a new house for $360,000 and are taking out a mortgage for $288,000. your mortgage broker offers you a 30-year fixed-rate mortgage at 6% with no points.

Answers

The effective annual yield on the mortgage with no points is 6%.

To calculate the effective annual yield, we need to consider the interest rate, the number of compounding periods per year, and any fees associated with the mortgage. In this case, there are no points, which are fees paid at closing to lower the interest rate, so we only need to consider the interest rate and compounding periods.

The mortgage has a fixed interest rate of 6%, which means that the interest rate will not change over the 30-year term of the loan. The compounding periods are not specified, but assuming monthly compounding, we can calculate the effective annual yield using the formula:

Effective annual yield = (1 + (interest rate / compounding periods))^compounding periods - 1

Plugging in the numbers, we get:

Effective annual yield = (1 + (0.06 / 12))^12 - 1

Effective annual yield = 6.17%

As a result, the effective yearly return on the no-point mortgage is 6.17%. The real return, however, will be the same as the interest rate, which is 6%, because the interest rate is set and there are no costs.

To know more about the Mortgage, here

https://brainly.com/question/14989714

#SPJ4

which statement below is true of central banks? they are introduced when consumers lose confidence in the bank or the system as a whole. they were developed by the founding fathers in order to ensure strict banking practices. they allow a bank to loan out money to other banks. they have a variety of tools that can be used to control the money supply

Answers

The statement below is true of central banks they were developed by the founding fathers in order to ensure strict banking practices.

Quizlet: What responsibilities do central banks have?

The central bank offers the Central Government services. On behalf of the government, it both collects and makes payments to other parties. It looks after and manages government deposit accounts. The central bank also offers loans and controls the nation's debt.

What was the first actual central bank, when was it established, and what impact did it have on banking?

The main goal of the Federal Reserve, which was established in 1913 by an act of Congress, was to increase the stability of the American financial system.

To Know more about Federal Reserve,

https://brainly.com/question/23247429

#SPJ1

a stock is currently priced at $69 and has an annual standard deviation of 49 percent. the dividend yield of the stock is 2.6 percent and the risk-free rate is 4.6 percent. what is the value of a call option on the stock with a strike price of $66 and 73 days to expiration? (use 365 days in a year. do not round intermediate calculations. round your answer to 2 decimal places.)

Answers

To calculate the value of a call option on a stock, we need to use an options pricing model, such as the Black-Scholes model. the value of the call option on the stock with a strike price of $66 and 73 days to expiration is $13.61.

This model takes into account several variables, including the current stock price, strike price, time to expiration, risk-free rate, and volatility. In this case, we are given the current stock price of $69, a standard deviation of 49%, a dividend yield of 2.6%, a risk-free rate of 4.6%, and a strike price of $66 with 73 days to expiration.

Using the Black-Scholes model, we can calculate the value of the call option as follows:[tex]d1 = [ln(S/K) + (r + σ^2/2)t] / (σ√t)[/tex]

[tex]d2 = d1 - σ√t[/tex]

where S is the stock price, K is the strike price, r is the risk-free rate, σ is the standard deviation (annualized), t is the time to expiration (in years), ln is the natural logarithm, and √ is the square root.

First, we need to convert the time to expiration from days to years by dividing by 365: t = 73 / 365 = 0.2

Next, we can calculate d1 and d2:

d1 = [tex][ln(69/66) + (0.046 + 0.49^2/2) * 0.2] / (0.49 * √0.2)[/tex] = 0.6743

d2 = 0.6743 - 0.49 * √0.2 = 0.3634

Using these values, we can calculate the value of the call option as:

C = [tex]S * N(d1) - K * e^(-rt) * N(d2)[/tex]

where N is the cumulative distribution function of the standard normal distribution.

Plugging in the values, we get:

C = [tex]69 * N(0.6743) - 66 * e^(-0.046 * 0.2) * N(0.3634)[/tex]

= 13.61

To learn more about Black-Scholes model, visit here

https://brainly.com/question/31514873

#SPJ4

Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million. John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:
Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000. However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures. The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.

Answers

Aerocomp is in the business of computing and computers. They have made decent money in the recent past. John Christer, CEO of Aerocomp has informed the Board of Directors of Aerocomp that the company has extra cash of about $2.5 million.

John has suggested that it is time for the company to diversify its growth potential into multiple areas beyond computing. Mark Zuber, the executive assistant to the CEO of Aerocomp, has proposed three alternative investments which are described as under:

Investment 1: A number of windmills are to be constructed on the southern frontier to generate electricity. They will cost a total of $400,000 and will last 10 years, at which time they will have an estimated salvage value of $25,000.

However, a capital upgrade of $100,000 will be required at the end of five years. An inventory of parts (working capital) amounting to $10,000 will be required during the term of the venture and will be housed in a warehouse that is currently not being used, but which has been used for Aerocomp’s previous ventures.

The inventory of parts will not be depleted during the term of the project. The warehouse could be rented out at $5,000 per year.

For more questions like Money click the link below:

https://brainly.com/question/22984856

#SPJ11

if the average cost per coffee is $3 , will firms exit or enter the coffee market? c. what is the average cost per coffee in the long run?

Answers

This impact the number of firms in the market, in a way if input costs increase and the market price does not increase in response, firms may exit the market. If input costs decrease, the average cost may decrease, potentially attracting new firms to enter the market.

Changes in input costs can have a significant impact on the long-run average cost per coffee in a perfectly competitive market. For example, an increase in the cost of coffee beans, labor, or rent can increase the average cost of producing coffee.

If the market price of coffee does not increase in response to the increase in input costs, firms may find it difficult to cover their costs, and some may exit the market.

On the other hand, if input costs decrease, the average cost of producing coffee may decrease, allowing firms to earn higher profits and potentially attracting new firms to enter the market.

Learn more about competitive market :

https://brainly.com/question/7024827

#SPJ4

The complete question is :

How do changes in input costs affect the long-run average cost per coffee in a perfectly competitive market, and how does this impact the number of firms in the market?

The following rates are quoted for euro in terms of US dollar ($) and C$ in terms of $ in New York: $/€ = $1.1520 $/C$= $0.7520 (a) What are the (implied) quote for $ in terms of euro (i.e., €/$) and for $ in terms of C$ (C$/$) in the above rates? (b) What is the cross rate for C$ in terms of € (€/C$) implied in the above rates?

Answers

The implied cross rate for C$ in terms of € (€/C$) is approximately 0.6523.

(a) To find the implied quote for $ in terms of euro (€/$) and for $ in terms of C$ (C$/$), we need to find the reciprocal of the given rates:

1. For €/$, take the reciprocal of $/€ = $1.1520:
  €/$ = 1 / $1.1520
  €/$ ≈ 0.8678

2. For C$/$, take the reciprocal of $/C$ = $0.7520:
  C$/$ = 1 / $0.7520
  C$/$ ≈ 1.3298

So, the implied quotes are €/$ ≈ 0.8678 and C$/$ ≈ 1.3298.

(b) To find the cross rate for C$ in terms of € (€/C$), we will use the given rates:

€/C$ = (€/$) / (C$/$)

Using the values we found in part (a):

€/C$ = 0.8678 / 1.3298
€/C$ ≈ 0.6523

The implied cross rate for C$ in terms of € (€/C$) is approximately 0.6523.

To know more about implied cross rate  refer here:

https://brainly.com/question/18270944#

#SPJ11

which of the following statements applies to the discount rate? the federal funds rate is the same as this rate. this rate is charged to depositors who are unable to meet their reserve requirement. the fed does not directly control this rate. this rate is used when banks borrow directly from the fed.

Answers

The discount rate is the interest rate that the Fed charges commercial banks when they borrow directly from the Fed's discount window. It is a tool used by the Fed to provide liquidity to the banking system, and its level influences borrowing and lending decisions by banks. The federal funds rate is not the same as the discount rate, and the Fed does not directly control the discount rate.

The discount rate is the interest rate that the Federal Reserve charges commercial banks to borrow funds from the Fed's discount window. The primary purpose of the discount rate is to provide liquidity to the banking system. When banks face a shortage of funds, they can borrow from the Fed's discount window to meet their reserve requirements and continue their lending operations.

Out of the given statements, the statement that applies to the discount rate is this rate is used when banks borrow directly from the Fed.This is because the discount rate is the interest rate charged by the Fed to commercial banks when they borrow directly from the Fed's discount window.

The federal funds rate, on the other hand, is the interest rate that banks charge each other for overnight loans of their excess reserves. This rate is not the same as the discount rate, as stated in one of the given statements. The Fed sets the federal funds rate through its open market operations, where it buys and sells government securities to influence the supply of reserves in the banking system.

Another statement that is not applicable to the discount rate is ""this rate is charged to depositors who are unable to meet their reserve requirement."" This statement describes the penalty rate that the Fed charges banks for failing to maintain the required level of reserves. The penalty rate is higher than the discount rate and is meant to encourage banks to maintain adequate reserves to meet their obligations.

Lastly, the Fed does not directly control the discount rate, but it does influence it through changes in its monetary policy. When the Fed wants to stimulate economic activity, it can lower the discount rate to encourage borrowing and lending by commercial banks. Conversely, when the Fed wants to slow down the economy, it can increase the discount rate, making it more expensive for banks to borrow from the Fed and reducing the money supply.

Click the below link, to learn more about Federal Reserve:

https://brainly.com/question/23247429

#SPJ11

Aukey Inc. pays a dividend of $1.50 on its common stock every quarter. The next dividend is expected exactly one quarter from now. If the required rate return on Aukey’s common stock is 12%, compounded quarterly (r4=12%), what is the intrinsic value of one share?

Answers

The intrinsic value of one share of Aukey Inc., we can use the dividend discount model formula:

Intrinsic Value = (Dividend / (Required Rate of Return - Dividend Growth Rate))

Since Aukey Inc. pays a dividend of $1.50 every quarter, we can calculate the annual dividend as follows:

Annual Dividend = $1.50 x 4 = $6.00

We can assume that the dividend growth rate is constant at 0%, since the problem does not provide any information on changes in the dividend.

Therefore, the intrinsic value of one share of Aukey Inc. can be calculated as:

Intrinsic Value = ($6.00 / (0.12/4 - 0%)) = ($6.00 / (0.03)) = $200

This means that the intrinsic value of one share of Aukey Inc. is $200, assuming a required rate of return of 12%, compounded quarterly, and a constant dividend growth rate of 0%. If the current market price of one share is lower than $200, it may be considered undervalued and a good investment opportunity.

to know more about intrinsic value refer here

https://brainly.com/question/27908904#

#SPJ11

though there are no statistics in the table, what do you expect was the finding based on the marginal means?

Answers

Based on the information provided and without the actual table or statistics, Marginal means refer to the average value of a variable while controlling for the other variables in a study.

1. Identify the variables in the study and their marginal means.
2. Compare the marginal means of each variable.
3. Analyze any differences or trends observed in the marginal means.
4. Draw conclusions based on the observed differences or trends, considering the context of the study.

By following these steps, you can interpret the findings of a study based on the marginal means of the variables involved. It's important to note that these expectations are hypothetical and speculative, as actual findings would require proper statistical analysis using appropriate methods, including significance testing, consideration of sample size, variability, and other relevant factors.

To know more about Marginal means refer here:-

https://brainly.com/question/12197996#

#SPJ11

a(n) ______________ advances the insertion point to the beginning of the next physical line.

Answers

A(n) "hard return" or "carriage return" advances the insertion point to the beginning of the next physical line. A hard return is a character inserted into a document or text field that tells the computer to start a new line or paragraph.

A hard return is a type of line break that is created when the "Enter" key is pressed on a computer keyboard. It is called a "hard" return because it creates a physical break in the text and moves the cursor or insertion point to the next line. Hard returns are commonly used in documents and other types of text to create paragraphs, headings, and other formatting elements. In contrast, a soft return, also known as word wrap, is a feature that automatically moves text to the next line when the end of the line is reached without requiring the user to manually insert a hard return. Soft returns are commonly used in word processing programs and other software applications to make text more readable and to ensure that it fits within the available space. Hard returns and soft returns serve different purposes and are used in different contexts, but they both play an important role in creating well-formatted and easily readable text.

Learn more about insertion  here:

https://brainly.com/question/30667459

#SPJ11

A "carriage return" advances the insertion point to the beginning of the next physical line.

A carriage return, sometimes known as a cartridge return and often shortened to CR, <CR> or return, is a control character or mechanism used to reset a device's position to the beginning of a line of text. It is closely associated with the line feed and newline concepts, although it can be considered separately in its own right.

Originally, the term "carriage return" referred to a mechanism or lever on a typewriter. For machines where the type element was fixed and the paper held in a moving carriage, this lever was on the left attached to the moving carriage, and operated after typing a line of text to cause the carriage to return to the far right so the type element would be aligned to the left side of the paper. The lever would also usually feed the paper to advance to the next line.

Learn more about carriage return here: https://brainly.com/question/30506107

#SPJ11

suppose that you solve the lp relaxation of a production problem in which you are trying to minimize cost. the optimal value of the objective function is $250,000. you know that when you solve this problem as an integer program that the optimal solution will be greater than or equal to $250,000. less than or equal to $250,000. greater than $250,000. less than $250,000.

Answers

When the LP relaxation of a production problem with the objective of minimizing cost has an optimal value of $250,000, the optimal solution of the integer program will be a) greater than or equal to $250,000.

The LP relaxation of an integer programming problem is obtained by relaxing the integer constraints to continuous variables, allowing non-integer values in the solution.

The LP relaxation solution provides a lower bound on the optimal solution of the integer program, but it may not be feasible in the integer program. In this case, the LP relaxation solution has an optimal value of $250,000.

When we solve the integer program, we enforce the integer constraints and seek feasible solutions. The objective function value of the integer program can be equal to, greater than or less than the optimal value of the LP relaxation.

However, since the objective function is to minimize cost, we cannot have a solution greater than the optimal value of the LP relaxation, which is $250,000. Therefore, the optimal solution of the integer program will be greater than or equal to $250,000(A).

For more questions like Function click the link below:

https://brainly.com/question/16008229

#SPJ11

Other Questions
which approach would the nurse use for a client with narcissistic personality disorder who insists on leaving the group to get an autogrsph which of the following situations best describes collaboration as an approach to managing conflict? multiple choice emphasizing both cooperation and assertiveness doing nothing to address a problem cooperating with another party without asserting one's own interests paying some attention to another party's concern but with little cooperation being unwilling to recognize another party's concern if a patient undergoes the current gene-modifying treatment for sickle cell disease (as described in lecture 25), which one statement is true about their future offspring? g the management of gamespeople designed a comprehensive strategy that unifies advertising, personal selling, public relations and sales promotion activities creating a consistent message. this effort to promote a positive brand image represents a(n) program. group of answer choices the nurse is reviewing the laboratory results of an older client who is admitted to a medical unit. which serum chemistry values should the nurse recognize as most commonly affected by the aging process? (select all that apply.) Complex numbers [tex]z[/tex] and [tex]w[/tex] satisfy [tex]|z|=|w|=1, |z+w|=\sqrt{2}[/tex].What is the minimum value of [tex]P = |w-\frac{4}{z}+2(1+\frac{w}{z})i|[/tex]? an option with over 9 months to expiration held in a margin account has: Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns:Market Return Aggresive Stock Defensive Stock8% 3.0% 4.8%20 31 14a. What are the betas of the two stocks?Beta A _____Beta D _____b, what is the expected rate of return on each stock if the market return is equally likely to be 8% or 20%? (Round your answers to 2 decimal places.) Rate of return on A _____ %Rate of return on D ______ %c. c. If the T bill rate is 7%, and the market retum is equally likely to be 8% or 20%, what are the alphas of the two stocks? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Alpha A ______ %Alpha D ______ % calculate the engery of a photon needed to cause an electron in the 3s orbital to be excited to tthe 3p orbital Hello solve this, what is 9 x 5/7 a pendulum is swinging upward and is halfway toward its highest position, as shown, when the string breaks. which of the paths shown best represents the one that the ball would take after the string breaks? you have made configuration changes to your cisco device. now you want to save the changes to use the next time the device is booted up. which command could you use? _____________________________ are the three alternative ways an international division's operating units can be organized.A. Export departments, sales departments, or marketing departmentsB. Local product groups, regional product groups, or world product groupsC. Geographical organizations, regional organizations, or global organizationsD. Local offices, foreign offices, or global officesE. Geographical organizations, world product groups, or international subsidiaries please help [100} POINTS A triangle has two legs measuring 21 cm and 20 cm. Which of the following leg measurement will make a right triangle? Read the passage. In 1803, Congress approved the treaty that finalized the Louisiana Purchase. The size of the United States almost doubled. Jefferson still held hope that the territory contained the famed and elusive Northwest Passage, a water route from the eastern United States to the Pacific Ocean, but because this land had not yet been explored by White settlers, Jefferson and Congress were in the dark about exactly what they had purchased. Jefferson sent Merriweather Lewis, his private secretary, and William Clark, an associate of Lewiss, to explore the territory. Without the help of Sacajawea, a Shoshone woman Lewis and Clark met in the Rocky Mountains, it is unlikely their expedition would have been as successful as it was. Which text structure is used in this passage? chronological order compare/contrast description problem/solution at 2.1 km from the transmitter, the peak electric field of a radio wave is 350 mv/m . what is the peak electric field 10 km from the transmitter? self-actualizers a. focus mostly on their own goals and tasks. b. focus on their need to have many friends. c. focus on problems outside themselves. d. focus on fulfilling childhood dreams and desires. if 124 ml of a 1.2 m glucose solution is diluted to 550.0 ml , what is the molarity of the diluted solution? which tool, used by government agencies, retrieves data from smartphones, gps devices, tablets, music players, and drones?