Bonita industries is constructing a building. construction began on january 1 and was completed on december 31. expenditures were $635 on march 1, $526 on june 1, and $855 on december 31. bonita industries borrowed $32 on january 1 on a 5-year, 13% note to finance construction of the building. in addition, the company had outstanding all year a 11%, 3-year, $637 note payable and an 12%, 4-year, $1205 note payable. what is the weighted-average interest rate used for interest capitalization purposes?

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

Afirm’s production function is represented by q(m, r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of: