Economics Answers

You're looking at two bonds identical in every way except for their coupons and, of course ,their price.
Both have 12 years of maturity . The first bond has a 10% annual coupon rate and sells for $935.08. The second bond has a 12% annual coupon rate . What do you think it would sell for ?

A government decides to increase the number of schools it operates leading to an increase in the demand for trachers. At the same time, the government decides to increase the qualification that a person needs to have to become a teacher using a demand and supply diagram analyse the effect of these two decisions on the equilibrim wage rate and the equilibrium quatity of teachers

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour
hours as your quantity variable

According to the Department of Labour’s new rates, domestic workers working in Area A (bigger metropolitan areas) who work more than 27 ordinary hours per week, must be paid a minimum of R13,69 per hour. Workers who work fewer than 27 hours per week, must be paid a minimum of R16,03 per hour. This will mean that a domestic worker who works 45 hours per week will now earn a minimum of R2 669,24 a month. Gardeners, drivers or people who look after children, the aged, sick, frail or disabled in a private
household, all qualify as domestic workers.

With the aid of a diagram, discuss the welfare effect of this new legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the equilibrium wage rate with labour
hours as your quantity variable.

explain technological efficiency and economic efficiency ?what kinds of system a form uses to get the ultimate objectives of profit maximisation

Zaid's financial year ends on 31 October. On 1 November 20-6 he owed advertising costs of $40. During the year ended 31 October 20-7 he paid advertising costs of $530. This included $270 for an advertising campaign for 6 months to 29 February 20-8.
How much did Zaid charge to the income statement for the year ended 31 October 20-7?
Show the ledger and income statement.

Identify the conducts elements and describe how they are:
1. Influenced the performance of markets

Hos does government investment compliment private investment?

what describes the demand curve

1) The company Old Co has a current stock price of $210 per share. Last year they paid an
annual dividend of $10 per share. Historically the dividend growth was 5% per year; the next dividend payment will be $10.50. What is the discount rate implied by this firm?
2)A competitor NewCo enters the market (same good, same technology, same market). The
company says they do not plan to pay a dividend for the first five years. Instead, they plan to
use the cash to make strategic acquisitions into new businesses. The company says they will
pay a dividend at the end of year 6 of $20 and then grow the dividend by 5% a year. What is
the present value of NewCo using the discount rate of OldCo?