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7 days ago

Suppose your friend tells you that he recently purchased a particular product for $1000 but that the product was "priceless." al

though your friend is probably exaggerating, what would the consumer surplus equal for his "priceless" product?

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A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. W

marusya05 [3725]

Given:

Loan amount = $250,000

Interest rate = 5.5%

Interest payment = $2,042.71

To find:

Total amount of interest

Solution:

The total duration in 15 years equals $15\times12=180\text{ years }$

Overall monthly payments will be $180\times \$2042.71 = \$367687.8$

Thus, the complete payback sum is $367,687.80

<pThe total interest to be paid is calculated as follows,

$\text{Total interest paid = Total pay-backs - Loan amount}$

By substituting the appropriate values into the equation above, we determine that,

$\Rightarrow \$3,67,687.8-\$250,000=\$1,17,687.80$

The total interest amount that the borrower will end up paying throughout the loan period is $117,687.80.

8 0

4 months ago

Nelson's Landscaping has 1,200 bonds outstanding that are selling for $990 each. The company also has 2,500 shares of preferred

soldi70 [3635]

Answer:

The proportion of common stock = 45%

Explanation:

WACC represents the average expense associated with a company's long-term financing options. Each financing source is assigned a weight based on its market value as a fraction of the overall market value of the funds available.

To determine the weight of common stock, we will proceed with the following steps

below:

Step 1

Compute the total market value of all funding sources

Market value of common stock

Bonds = $990 × 1,200 = $1,188,000

Preferred Stock = $28 × 2,500 = $70,000

Common stock = $37 × 28,000 = $1,036,000

Total market value = 1,188,000 + 70,000 + 1,036,000

= $2,294,000.00

Step 2

Determine the weight of common stock

The weight of common stock = ($1,036,000 / $2,294,000.00) × 100

= 45%

The proportion of common stock = 45%

8 0

3 months ago

Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the following payoff matrix as they decide

Mariulka [3825]

Answer:

Explanation:

Synergy's Choices Large Budget Small Budget Dynaco's Choices Large Budget $20 million, $25 million $15 million, $0 Small Budget $0, $60 million $25 million, $30 million If Synergy assumes

If Synergy presumes Dynaco will opt for a large budget, then Synergy should also select a large budget.

If Synergy thinks Dynaco will choose a small budget, Synergy should still go for a large budget.

This indicates that Synergy indeed has a dominant strategy.

If Dynaco believes Synergy will pursue a large budget, it will likewise pursue a large budget.

Conversely, if Dynaco believes that Synergy will choose a small budget, it will choose a small budget as well.

Therefore, Dynaco lacks a dominant strategy.

Correctly stated, the Nash equilibrium is found at (large budget, large budget).

7 0

3 months ago