3 Suppose a company incurs the following costs: labor, $600; equipment, $300, and materials, $200. The company owns the building.
so it doesn't have to pay the usual $700 in rent.
Instructions: Enter your responses as a whole number.
a. What is the total accounting cost?
66
Ints
$1
b. What is the total economic cost?
eBook
Print
$
Feferences
c. If the company sold the building and then leased it back, what would be the change in
(1) Accounting costs?
$
(ii) Economic costs?
$

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Ryan receives an e-mail that states the internet is being cleaned up and that he should leave his computer powered-off for 24 hours after receipt of this message. after careful review of the message contents and verifying the information with the desk he realizes this is: