Inflation is expected to be 2% this year and next year, 3% the year after, and 4% the following year. The real risk-free rate is 1.0%. A bond that matures in 4 years has a liquidity premium is 50bps and its maturity risk premium is 35bps. The bond's default risk premium is 110bps. What is the required rate of interest on this 4 -year corporate bond, which has a rating of A-? 6.95% 5.70% 5.95% 4.95% It cannot be determined from the information given.

Answers

Answer 1

The required rate of interest on the 4-year corporate bond with an A- rating is 5.95%.

The required rate of interest on a bond is determined by adding various components: the real risk-free rate, expected inflation, liquidity premium, maturity risk premium, and default risk premium. In this case, the real risk-free rate is 1.0% and the expected inflation rates for the next four years are 2%, 2%, 3%, and 4% respectively.

To calculate the required rate of interest, we sum up these components. Adding the real risk-free rate and expected inflation, we get a nominal risk-free rate of 3.0%. Adding the liquidity premium of 50bps, the maturity risk premium of 35bps, and the default risk premium of 110bps, we obtain a total risk premium of 195bps.

Finally, adding the nominal risk-free rate and the total risk premium, we arrive at the required rate of interest of 5.95%.

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Related Questions

i. Areogram is used to send written message to

Answers

An Aerogram, Aérogramme or Air Letter is a thin lightweight piece of foldable and gummed paper for writing a letter for transit via airmail, in which the letter and envelope are one and the same. Most postal administrations forbid enclosures in these light letters, which are usually sent abroad at a preferential rate.

What is the difference between a debit card and a cash card? A. A debit card is less secure than a cash card.  B. A cash card can only be used in certain stores.  C. A cash card is not tied to a bank account.  D. A debit card carries no spending limits.

Answers

Answer:

C. A cash card is not tied to a bank account.

Explanation:

The difference between the debit cash and a card is that a cash card is not tied to a bank account.

What is a cash card?

A cash card is a term for the payment that stores the cash, gift, and prepaid debts. The credit card is not consider to be a cash card and the is a conviennet way of the shareholders to make electronic payments.

The square cash card offers an app for making cash card payments. It allows the users to make transactions through the user's account and is unique to Sutton bank.

Find out more information about the cash card.

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In an oral agreement, Chris offers to sell Marcy his car for $13,000, but Marcy is confused and thinks Chris said $15,000.
As they continue their negotiations, Chris becomes aware that Marcy thinks he said $15,000 instead of $13,000, and
when Marcy agrees to pay the additional $2,000, Chris doesn't say anything. Is the contract going to be upheld? True false

Answers

Answer: The answer is no.

Alan Bird's research on global leadership divided business competencies into three categories: (1) those needed to manage the business, (2) those needed to manage people and relationships, and (3) those needed to manage the

Answers

Alan Bird's research on global leadership is one whose business competencies into three categories  where there is  those needed to manage self.

What is managing the self?

The act of Self-management, is known to be one where a person or firm is said to be in charge of themselves or they are “self-control” or “self-regulation,”.

This term connote  the ability to monitors one's emotions, thoughts, and behaviors well in a lot of situations as in the case with Alan Bird's research.

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Quentin and Samira jointly own their home when Quentin defaults on credit card debt. To determine if Quentin is insolvent, how will the home play into the calculation? The home is not considered since it is jointly owned. Quentin must use 100% of the home's value as an asset and 100% of its debt as a liability. Quentin must use 50% of the heme's value as an-asset and 50% of the home's debtas-aliability. Quentin may transfer ownership of the home solely to Samira after the cancellation to exclude it from his insolvency calculation.

Answers

The calculation of Quentin's insolvency takes into account the ownership structure of the home. The approach chosen will determine whether the home's full value and debt, only Quentin's share, or no part of the home is included in the insolvency calculation.

In determining Quentin's insolvency, the home's ownership structure will impact the calculation. The options are as follows:

Quentin must use 100% of the home's value as an asset and 100% of its debt as a liability. This means the entire value of the home and its corresponding debt will be included in Quentin's insolvency calculation, regardless of joint ownership.

Quentin must use 50% of the home's value as an asset and 50% of the home's debt as a liability. In this case, only Quentin's share of the home's value and debt will be considered in the insolvency calculation, reflecting the joint ownership arrangement.

Quentin may transfer ownership of the home solely to Samira after the cancellation to exclude it from his insolvency calculation. By transferring ownership of the home solely to Samira, Quentin can exclude the home from his insolvency calculation entirely.

In the first option, where Quentin includes 100% of the home's value and debt, joint ownership does not provide any exclusion or differentiation. Both the value and debt associated with the home will be considered in Quentin's insolvency assessment.

In the second option, the insolvency calculation acknowledges the joint ownership structure by considering only 50% of the home's value and debt. This approach recognizes that Quentin is not solely responsible for the entirety of the home's financial position.

In the third option, if Quentin transfers ownership of the home solely to Samira, it effectively removes the home from Quentin's assets and liabilities, and thus, it will not be considered in his insolvency calculation.

The calculation of Quentin's insolvency takes into account the ownership structure of the home. The approach chosen will determine whether the home's full value and debt, only Quentin's share, or no part of the home is included in the insolvency calculation. It is crucial for Quentin to understand the implications of each option and seek appropriate legal and financial advice to make an informed decision regarding the treatment of the jointly owned home in his insolvency assessment.

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Which method of production is most suitable to producing movies (films)?

a.Mass production
b.Batch production
C.Job production
D.Cellular production

Answers

Answer:

a.Mass production

Explanation:

Mass production also known as flow or continuous production is used when identical and standardized items are to be produced.  This method usually make use of assembly lines thereby making large number of identical products.

Mass production is suitable when the volume of the item to be produced is large making many copies of an item quickly. This method is based on division of labor and use of modern methods.

The expected return for the market is 9% and the T-bill rate is 3%. Binturang Corporation has a beta of 1.3. According to the CAPM, what is the required return of Binturang?
a.9.90%
b.11.40%
c.10.80%
d.none of the choices

Answers

The required return of Binturang Corporation can be calculated using the Capital Asset Pricing Model (CAPM). The formula for CAPM is:

Required Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)

Given that the risk-free rate is 3%, the market return is 9%, and Binturang Corporation has a beta of 1.3, we can substitute these values into the formula to find the required return:

Required Return = 3% + 1.3 * (9% - 3%)

              = 3% + 1.3 * 6%

              = 3% + 7.8%

              = 10.8%

Therefore, the required return of Binturang Corporation, according to the CAPM, is 10.8%. The correct answer is option c.

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how do our normative positions affect the choices we make individually and society

Answers

Our normative positions affect the choices we make by affecting

Who to voteHow to treat people The time and the period to marry.

What are normative positions?

These are the ways that people are able to come up with new ideas as well as new positions.

It teaches of the various necessary channels that may help one to effect out of the box thinking.

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Jason is an ancient history lover. He wants to share his knowledge on social media, but he does not think that video platform will work well since he cannot afford to travel to many of the places that have the ruins he wants to share information about. What would be the best social media platform to provide information show pictures of these places?

Answers

The best social media platform where Jason can share his knowledge and provide information and show pictures of these places is where common people and his friends near and all over can connect with him and can be friends with him on that networking site.

What is social media?

Social media refers to the means of interactions among people in which they create, share, and/or exchange information and ideas in virtual communities and networks. We offer an array of tools, including one-on-one consults with schools, departments and offices looking to form or maintain an existing social media presence to discuss social media goals and strategy, as well as offer insights and ideas.

Before creating any social media account, we must submit the Account Request Form.

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The u.s. bureau of labor statistics has a website that can be of great help when researching careers. it contains many types of information, including: career outlook. career locations and environments.

Answers

The U.S. Bureau of Labor Statistics helps with career advice with a section of their website allowing for career research so this is True.

How does the U.S. BLS help with career research?

The Bureau of Labor Statistics is interested in helping Americans to decide what career best suits them.

They offer this help by operating a section on their website where different information on careers are found such as career locations and environments.

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Answer:

Option B: Salary

Explanation:

Edge 2022

w How does a training change a traditional profession into a modem profession? Discuss in the class.​

Answers

Answer:

when one gains training he/she likes to do some works which gains much profit .he /she leaves the works which they worked for first time.

how do changes in interest rates affect the money supply (1 point)

Answers

Changes in interest rates can affect the money supply through their impact on the demand for money. Higher interest rates generally increase the cost of borrowing, which reduces demand for credit, and hence, for money. Conversely, lower interest rates make borrowing cheaper, leading to an increase in demand for money.

1. When interest rates increase, the cost of borrowing money becomes more expensive. As a result, people and businesses are less likely to take out loans, which leads to a decrease in the money supply.
2. Conversely, when interest rates decrease, the cost of borrowing money becomes cheaper. This encourages people and businesses to take out more loans, which increases the money supply.

In addition, the Federal Reserve (the central bank of the United States) can use changes in interest rates as a tool to influence the money supply. When the Fed lowers interest rates, it makes it easier for banks to borrow money, and hence, increases the supply of money in the economy. This, in turn, can lead to higher spending, investment, and economic growth. On the other hand, when the Fed raises interest rates, it becomes more expensive for banks to borrow money, which reduces the money supply and can slow down economic growth.

Overall, changes in interest rates can have significant effects on the money supply, which, in turn, can have important implications for the broader economy.

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Why does investing in stocks often yield a higher rate of return than investing in certificates of deposit?
A) There is a risk that investors in stocks will lose all of their investments if the company in which they invested fails.
B) There is a risk that investors in stocks will be forced to sell their shares of a company if the company goes bankrupt.
C) There is a risk that investors in stocks will be forced to invest more money in a company if the company cannot pay its debts.
D) There is a risk that investors in stocks will be criminally charged for any wrongdoing on the part of the company in which they invested.​

Answers

Answer:

Letra D)

Explanation:

The balances in sales returns, allowances, and discounts are subtracted from total revenues when calculating net revenues.

Answers

The receivable balance in the various aging categories (see table below) is multiplied by a reserve rate to determine the allowance for uncollectible accounts.

Which of the following is a discount that lowers the total amount due if the consumer pays within a certain time frame?

Discounts for early payments Offering an early payment discount doesn't affect the price at which the products are sold. Customers may only reduce the overall amount due from you if they pay you within a certain time frame; otherwise, the total amount owing does not change.

What is estimated using the allowance method?

The allowance approach involves crediting allowance for uncollectible accounts and debiting bad debt expenditure to estimate the amount that the company anticipates would be uncollectible. It will debit allowance for doubtful accounts and credit accounts receivable if a certain account becomes uncollectible.

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Which ofthe following accounts are usually transferred to the Income Statement? *
1 point
a. Rent, premises, drawings
b. Drawings, rent, purchases
c. Commission received, rent, purchases
d.Purchases, furniture, commission received​

Answers

Answer:C

Explanation:It is C because to get your commission they need to transferred to your Income Statement and for rent they need to know that you can afford to live there.To purchase big stuff they gotta look at your income to buy it.

Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal. We will post to the accounts one transaction at a time. Begin by posting the events from the 1st. July ​1: Yarwood contributed $ 68 comma 000 cash to the business in exchange for Common Stock. ​(We will post to the accounts one transaction at a time. Post only the transaction from July 1 in this​ step.)

Answers

Answer:

Dr Cash $68,000

Cr Common Stock $68,000

Explanation:

1st July

The entry to record the capital investment of Yarwood who contributing $68,000 in cash would result in an increase in common stock and increase in company cash balance which means that increase in common stock must be credited and increase in cash balance must be debited.

Dr Cash $68,000

Cr Common Stock $68,000

Suppose a total of​ 2,500 students are allowed in the engineering programs at all of the colleges in a particular city. From the previous three​ years' record, it shows that the number of students who enroll in the entrance exam for the engineering program increases if there is an increase in the number of IT recruiters the previous year.This year there is a total of​ 3,200 students who have enrolled to take the entrance exam of which only up to​ 2,500 of those who passed would get in. Based on either the​ students' perspective or the college​ perspective, what combination of economic key concepts does the situation​ follow? A. Optimization and empiricism B. Equilibrium and empiricism C. Optimization and equilibrium D. ​Optimization, equilibrium, and empiricism

Answers

Answer:

D. Optimization, Equilibrium and Empiricism.

Explanation:

Economics is based on three key concepts which are Optimization, Equilibrium and Empiricism. Optimize is the first principle which means people will select best available option. Second important principle is that economy is always in a state of equilibrium which means if one gains the other also gets best available value. Third concept is that economists use data to make policies. The situation given in the scenario follows all the key concepts of economy.


You invest $5,000 (PV) for 20 years (n) at an interest rate of 8% (r). What is the amount you would receive at
the end of 20 years (FV)?

Answers

Answer:

sweet

Explanation:

an assigned risk pool includes people who are able to obtain auto insurance due to a great driving record.

Answers

An assigned risk pool includes people who are able to obtain auto insurance due to a great driving record is False.

The three types of auto insurance commonly offered are third-party collision damage waiver and comprehensive. Drivers can continue to purchase other types of car insurance, including If something bad happens to you the insurance company will pay you, or someone you choose.

Insurance protects against possible financial losses. You can't predict the future so you never know when something bad will happen to you or your property. Insurance can prepare for the worst. Provides protection against many risks. B. Unexpected property damage illness or injury.

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4. A few minutes later you came across some old commercials for the movie The Hunger Games.
Again, you realized that you learned about this type of economy in your economics class. Which type
of economic system best describes the fictional country of Panem? How can you tell?

Answers

The type of economic system that is in place in the fictional country of Panem is a Command economy.

How was Panem a command economy ?

In a command economy, all economic decisions are made at the discretion of the central authority. The land and the means of production are either owned by the state or a group.

Government control, as opposed to private enterprise, according to proponents of command economies, can guarantee a just distribution of goods and services.

Panem was a command economy in the Hunger Games because the government in the Capital controlled all aspects of life in the various districts.

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Chartreuse Lavender Expected Return 12% 4% Standard Deviation of Returns 40% 25% Correlation (Chartreuse, Lavender) = -0.20

Answers

To calculate the portfolio expected return and standard deviation for a portfolio consisting of Chartreuse and Lavender investments, we need to consider the weights of each investment in the portfolio.

Let's assume that the weight of Chartreuse is w1 and the weight of Lavender is w2, where w1 + w2 = 1.

The expected return of the portfolio is given by:

Portfolio Expected Return = w1 * Expected Return of Chartreuse + w2 * Expected Return of Lavender

Portfolio Expected Return = w1 * 12% + w2 * 4%

The standard deviation of the portfolio is given by:

Portfolio Standard Deviation = sqrt(w1^2 * Standard Deviation of Chartreuse^2 + w2^2 * Standard Deviation of Lavender^2 + 2 * w1 * w2 * Correlation * Standard Deviation of Chartreuse * Standard Deviation of Lavender)

Portfolio Standard Deviation = sqrt(w1^2 * (40%)^2 + w2^2 * (25%)^2 + 2 * w1 * w2 * (-0.20) * 40% * 25%)

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A person's continuing inability to pay their bills with their current salary would be considered a(n) _____ stressor.

Answers

Based on the information, the inability for the person to pay his or her bills with the salary is known psychosocial stress.

Psychosocial stress simply means the results. It is a cognitive appraisal of what is at stake and what can be done about it.

Psychosocial stress can be seen as the imbalance between demands and the ability to manage them. In this case, Thai can be illustrated as a person's continuing inability to pay their bills with their current salary.

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Which of the following is a commonly used organizational buying criterion?Select one:a. taste of the buyerb. personal relationship with sales representativec. price d. existing mood of the buyer

Answers

The buyer's preferences and price are frequently utilized organizational purchasing criteria, thus choices (A) and (C) are appropriate.

What is meant by a sales representative?

Sales professionals oversee completing existing accounts, obtaining new ones, and following a daily work plan in order to completely ensure their customers' delight across all purchase stages.

While managers are in charge of establishing plans and managing inventory, the Representative assists in getting the right customers the inventory.

The sales representative is in charge of making sales and addressing customer needs while obtaining orders from current or potential sales channels. They make sure the customer is satisfied and well taken care of before they make a purchase.

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NEED HELP ASAP

Complete the following sentence.

Chronological, functional, and targeted are just a few of the many formats for writing a _____.

Answers

Answer:

I think it's a story/book

Explanation:

because it's the only thing I can think of when I think of the words chronological, functional, and targeted.

fresh eggs moving from farms to a retailer and then on the final consumer , identify points in the supply chain where the eggs might used to be stored. Why is it essential to move eggs quickly down the supply chain?​

Answers

Eggs are regarded as the ideal food. They are vitamin and protein-rich, easy to prepare, and affordable for even the retailer most frugal food buyers. To meet demand, it is supply chain that egg production would increase by 50% by 2030.

The advantages of keeping a high supply chain velocity are several. Not only can higher supply chain velocity boost customer happiness, but it can also shorten shipment times, lower shipping costs, improve inventory tracking, and streamline operations for more retailer efficiency. It's crucial to take immediate action and foresee when supplies are likely to run low in order to promptly place orders and maintain control over supply and resources.

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One major reason businesses seek investment is to:
A. increase the opportunity cost of making new products.
B. boost their productivity by improving their inputs.
C. give them the ability to ignore production possibilities curves.
D. reduce their need for consistent financial growth.

Answers

One major reason businesses seek investment is to boost their productivity by improving their inputs. Option B is correct.

What is Investment?

A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilize it as a source of immediate consumption, but rather as a tool for future wealth creation.

An investment always involves the expenditure of some resource today time, effort, money, or an asset—in the anticipation of a future return greater than the initial investment.

For instance, an investor might buy a financial asset right away with the hope that it would provide income later on or that it can be sold for a profit at a higher price.

Thus businesses seek investment is to boost their productivity by improving their inputs in order to maximize wealth of owners of the business.

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"Monetary policy can be described either in terms of the money supply or in terms of the interest rate." This statement amounts to the assertion that a. the activities of the Federal Reserve’s bond traders are irrelevant if the Federal Reserve decides to target an interest rate. b. our analysis of monetary policy is not fundamentally altered if the Federal Reserve decides to target an interest rate. c. changes in monetary policy aimed at expanding aggregate demand can be described either as increasing the money supply or as increasing the interest rate. d. rightward shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.

Answers

Answer:

b

Explanation:

The monetary policy is not fundamently altered

A personal career profile form can be used to match what you know about yourself to what you know about different careers. TRUE or FALSE.

Answers

Answer:

True

Explanation:

If you look you can understand that personal helps you know yourself.

Answer:

trueeee

Explanation:

on edge

Try 2: Suppose $5000 is invested at an annual interest rate of 6.75% for a period of 10 years. Compute the future value of the investment if the interest is compounded annually, semiannually, quarterly, weekly, monthly, and continuously.

Answers

To calculate the future value of an investment with different compounding periods, we can use the formula for compound interest:

Future Value (FV) = P(1 + r/n)⁽ⁿᵗ⁾

Where:

P = Principal amount (initial investment)

r = Annual interest rate (as a decimal)

n = Number of times the interest is compounded per year

t = Number of years

Let's calculate the future value of the $5000 investment with different compounding periods:

= 6.75% or 0.0675 (as a decimal)

t = 10 years

FVannually= $5000 * (1 + 0.0675/1)⁽¹*¹⁰⁾ = $5000 * (1.0675)¹⁰ ≈ $8944.45

2. Compounded Semiannually:

n = 2 (compounded twice a year)

r = 6.75% or 0.0675 (as a decimal)

t = 10 years

FVsemiannually= $5000 * (1 + 0.0675/2)⁽²*¹⁰⁾ = $5000 * (1.03375)²⁰ ≈ $8984.73

3. Compounded Quarterly:

n = 4 (compounded four times a year)

r = 6.75% or 0.0675 (as a decimal)

t = 10 years

FVquarterly= $5000 * (1 + 0.0675/4)⁽⁴*¹⁰⁾ = $500

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filipino shrimpers practice dumping by selling their catch to u.s. customers at a price that is higher than the price of shrimp caught in the united states.

Answers

It is true that Filipino shrimpers practice dumping by selling the catch to U.S. customers at price that is higher than price of shrimp caught in United States.

What is a customer?

A customer is a person or entity who purchases goods or services from a business in exchange for payment. Customers are the lifeblood of any business, as they generate revenue and sustain the company's operations. They are the reason why businesses exist and the primary focus of marketing efforts. Customer satisfaction is crucial to the success of a business, as it leads to repeat business, positive word-of-mouth referrals, and brand loyalty. A good customer experience can lead to increased sales and profits, while a poor experience can have a negative impact on the business's reputation. Therefore, businesses must strive to understand their customers' needs and preferences and provide exceptional service to retain them.

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Complete Question:

Filipino shrimpers practice dumping by selling their catch to u.s. customers at a price that is higher than the price of shrimp caught in the united states. Is True or False?

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I'd very much appreciate it if you helped me out! I'm running low on time and need answers :((( if a violin string vibrates at 390 hz as its fundamental frequency, what are the frequencies of the first four harmonics? Prompt using complete sentences post a detailed response to the following. it is very helpful to have a second language in life and in career. develop a logical argument for why asl makes a useful second language for you. include supporting evidence and concrete details in your answer SOMEONE HELP ME PLEASE How many people worked in service jobs?A. 1,898.40B. 18,984C. 189,840D. 1,898,400E. 18,984,000 ANSWER FOR BRAINLIST AND HEARTS 30 POINTS! thanks for helping can you show the steps What is the main idea of stanza 1 of "To the Right Honourable William, Earl of Dartmouth"? Egg whites consist primarily of water and the protein albumin. When you fry an egg, why does the egg white turn from clear to white?. A 62-year-old, otherwise healthy, non-smoking woman presents to the clinic with a cough productive of green sputum for seven days. There is low-grade fever and scattered rhonchi on exam, with an oxygen saturation of 97% on room air. Which of the following is the most likely diagnosis?A Acute bronchitisB Acute exacerbation of COPDC PneumoniaD Upper respiratory infectionA. Acute Bronchitis The forces by which God has caused the earth and the universe to operate are called _______________ laws.naturalunnaturalscientificsupernatural Please help meeeeeee7.5% of what number is equal to 85% of 200? A company manufactures and sells packaging machines. It recently introduced activity-based costing to refine its existing system. Each packaging machine requires direct materials costs of $50,000; 50 equipment parts; 12 machine hours; 15 assembly line hours and 4 inspection hours. The details about the cost pools, allocation bases and allocation rates are given below : Indirect cost pool - cost all base - budget allocation rate Material handing - no of component- $8 per part Machining - machine hours- $68 per machine hour Assembly - assembly line hours- $75 per assembly hour Inspection- inspection hours- $104 per inspectiin hour The company has received an order for 40 can-packaging machines from a customer. Using activity-based costing, indirect costs allocated to the order of the customer would be (A) $ 130,850 (B) 125,280 (C) $ 115,050 (D) 110,280 Show your calculations $5000 principal earning 4% compounded annually, 4 years How did Britain's treatment of American colonists before the War of Independence affect the Constitution? Concerns over individual rights led to the addition of the Bill of Rights. Concerns about the changing government structure led the Framers to include many of the same policies practiced by the British government. The Framers of the Constitution decided to include many of the same laws they had under British rule because they worked well. The Framers of the Constitution wanted to model their central government after the strong British monarchy. 15. Indicate the direction the groundwater is flowing. Note: Groundwater flows downgradient (from high elevation to low elevation).O toward the NorthO toward thc WestC) toward the NorthwcstC) toward the Southeast In their relationship, Kim and Robert eat their meals together, present themselves to others as a unified couple, and seldom ever have gender-role conflicts in their relationship. They exemplify Write the number in standard form: 9.110^-9 (4) Williams Middle School held a clothing drive. The results are recorded on the bar graph. What percentage of the items collected are shoes? Round to the nearest tenth of a percent. 7.6G Number Collected 60 40 20 Shirts Clothing Drive Pants Shorts Shoes Type of Clothing During the year, John (a self-employed management consultant) went from Milwaukee to Hawaii on business. Preceding a five-day business meeting, he spent four days vacationing at the beach. Excluding the vacation costs, his expenses for the trip are: Find the error with subject-verb agreement. Select the incorrect verb and type it correctly.Toensureeasynavigationeachofthedocumentshaveatableofcontentsandanappendix