A municipal bond yields 6.75%. A corporate bond on comparable credit quality and maturity yields 9.0%. At what marginal tax rate would an investor be indifferent between the two bonds

Answers

Answer 1

Answer:

Marginal tax = 25%

Explanation:

To be indifferent between the bonds then return from both types of bond should be same. The municipal bond yields are tax free so tax can be imposed on the corporate bonds.

Thus, the (9 - 6.75) / 9 = 0.25 or 25%

So, a marginal tax of 25% should be imposed in order to be indifferent between the bonds.


Related Questions

What is an advantage of small businesses?

Answers

Answer:

An extremely important advantage to being small is that you are in a better position to provide a more personal service to your customers. Customers trust businesses that offer them sincere personal attention, and they respond well to businesses that know their names and remember details about former transactions.

Explanation:

Discuss how key practices in the partnering approach to managing contracted relationships vary from those in the traditional approach regarding risk, length of commitment, and structure of project teams.

Answers

Answer:

Approaches to risk, structure and length of commitment has been changed in a positive way.

Explanation:

Approaches to risk, structure and length of commitment has been changed in a positive way. Risk is greatly changed by introducing the following strategy:

Transfer, Avoid, Reduce and Accept.

The risk is analyzed first to identify the nature whether it can be transferred or not if yes it is transferred, if not then risk is again analyzed if this can be avoided, if not then risk is again analyzed if the chances of risk occurring can be reduced, if not then the risk is accepted.

Length of commitment is changed to easy terms, the length of commitment in the past was of a longer duration [more than a year], unlike now which is a choice, length of commitment can be less than a year or maybe more than a year.

In 2019, Osgood Corporation purchased $8.1 million worth of 10-year municipal bonds at face value. On December 31, 2021, the bonds had a fair value of $3,400,000 and Osgood reclassified the bonds from held-to-maturity to trading securities. Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following: Investment in bonds (TS) Income statement loss on investments a. $ 3,400,000 $ 0 b. $ 3,400,000 $ 4,700,000 c. $ 8,100,000 $ 4,700,000 d. $ 8,100,000 $ 0

Answers

Answer:

Osgood Corporation

Osgood's December 31, 2021, balance sheet and the 2021 income statement would show the following: Investment in bonds (TS) Income statement loss on investments:

b. $ 3,400,000 $ 4,700,000.

Explanation:

a) Data and Calculations:

2019: Face value of 10-year municipal bonds = $8.1 million

December 31, 2021, Fair value of the municipal bonds = $3.4 million

There is a loss in value amounting = $4.7 million ($8.1 - $3.4)

In the balance sheet, the municipal bonds will stated at its fair value of $3.4 million while in the income statement, there will be a loss on investments of $4.7 million.

The demand for personal computers has been estimated to be Q = 500,000 – 700P +200I - 500S. Assume that per capita income I is $13,000 and the average price ofsoftware S is $400.When the price of personal computers is P = $3,000, the priceelasticity of demand is:________.a. –2.625b. –7.0c. –1.0d. –21.0e. –4.25

Answers

Answer:

The price elasticity of demand is: -2.625

Explanation:

Given

[tex]Q = 500000 - 700P +200I - 500S[/tex] --- the demand

[tex]I =\$13000[/tex] --- per capita income

[tex]S = \$400[/tex] --- average price of software

[tex]P = \$3000[/tex] --- price of computer

Required

The price elasticity of demand

Substitute values for I and S in: [tex]Q = 500000 - 700P +200I - 500S[/tex]

[tex]Q = 500000 - 700P +200*13000 - 500*400[/tex]

Collect like terms

[tex]Q = 500000 +200*13000 - 500*400- 700P[/tex]

[tex]Q = 2900000- 700P[/tex]

The price elasticity (n) is then calculated using:

[tex]n =\frac{P}{Q} * \frac{dQ}{dP}[/tex]

[tex]Q = 2900000- 700P[/tex]

Differentiate

[tex]\frac{dQ}{dP} = -700[/tex]

Calculate Q when [tex]P = \$3000[/tex]

[tex]Q = 2900000- 700*3000[/tex]

[tex]Q = 800000[/tex]

So, we have:

[tex]n =\frac{3000}{800000} * -700[/tex]

[tex]n =-\frac{3000* 700}{800000}[/tex]

[tex]n =-\frac{2100000}{800000}[/tex]

[tex]n =-\frac{21}{8}[/tex]

[tex]n =-2.625[/tex]

The price elasticity of demand is going to be –2.625.

The equation has

Q = 500,000 – 700P +200I - 500S.

p =  $3,000

I = $13,000

S = $400

We have to put in these values in the equation that we have here:

Q =  500,000 – 700*3000 +200*13000 - 500*400

= 800000

We have to find dQ/dP

=  500,000+200*13000 - 500*400 – 700P

= 2900000-700p

= -700p

The price elasticity =

-700*3000/800000

= -2.625

The price elasticity =   -2.625

Read more on price elasticity here:

https://brainly.com/question/8729849

The US Federal System is the voting method for passing a bill into law. It involves 100 members of the Senate, 435 members of the House of Representatives, the vice president, and the president, for a total of 537 voters. For a bill to pass, it must have a majority in the House, a majority in the Senate, with the possibility of the vice president breaking a tie, and the signature of the President; or if the president opposes the bill, it must have a 2/3 super-majority in both the House and Senate to override the veto. Otherwise the bill is defeated. Think of this as a social choice function where the alternatives are A, to pass the bill, or B, to defeat the bill. Does the US federal system satisfy:

a. the anonymity criterion
b. the neutrality criterion
c. the monotonicity criterion
d. the decisiveness criterion

Answers

Answer:

correct answer is B nun else

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.

May
3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $11 cash per unit (for a total cost of $22,000).
5 Allied sold 1,000 of the units in inventory for $15 per unit (invoice total: $15,000) to Macy Co. under credit terms 2/10, n/60. The goods cost Allied $11,000.
7 Macy returns 100 units because they did not fit the customer’s needs (invoice amount: $1,500). Allied restores the units, which cost $1,100, to its inventory.
8 Macy discovers that 100 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $700 to compensate for the damage.
15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, allowances, and any cash discount.

Required:
Prepare the appropriate journal entries for Macy Co. to record each of the May transactions.

Answers

Answer:

Allied Merchandisers

Journal Entries:

May  3 Debit Inventory $22,000

Credit Cash $22,000

To record the purchase of goods for cash.

May  5 Debit Accounts receivable (Macy Co.) $15,000

Credit Sales revenue $15,000

To record the sale of goods on credit, terms 2/10, n/60.

Debit Cost of goods sold $11,000

Credit Inventory $11,000

To record the cost of goods sold.

May  7 Debit Sales Returns $1,500

Credit Accounts receivable (Macy Co.) $1,500

To record the return of 100 units.

Debit Inventory $1,100

Credit Cost of goods sold $1,100

To record the cost of goods returned.

May  8 Debit Sales Allowances $700

Credit Accounts receivable (Macy Co.) $700

To record the sales allowance given.

May  15 Debit Cash $12,544

Debit Cash Discounts $256

Credit Accounts receivable (Macy Co.) $12,800

To record the receipt of cash for full settlement of account.

Explanation:

a) Data and Analysis:

May  3 Inventory $22,000 Cash $22,000

May  5 Accounts receivable (Macy Co.) $15,000 Sales revenue $15,000 terms 2/10, n/60.

Cost of goods sold $11,000 Inventory $11,000

May  7 Sales Returns $1,500 Accounts receivable (Macy Co.) $1,500

Inventory $1,100 Cost of goods sold $1,100

May  8 Sales Allowances $700 Accounts receivable (Macy Co.) $700

May  15 Cash $12,544 Cash Discounts $256 Accounts receivable (Macy Co.) $12,800

assume that in the short run a firm is producing 800 units of output, has average total costs of $150, and has cost of $100. the firm's total variable costs are?

Answers

Answer:

$80,000

Explanation:

Missing word "and has average variable costs of $100"

Note: AVC = Average variable cost, TVC = total variable cost

AVC = TVC / Output

$100 = TVC/800 units

TVC = $100*800 units

TVC = $80,000

So, the firm's total variable costs are $80,000.

When a parent owns less than 100% of a subsidiary, the noncontrolling interest shareholders are allocated their ownership percentage of income or net assets in all of the following consolidating entries except for: Group of answer choices The basic investment account consolidation entry The excess value (differential) reclassification entry The accumulated depreciation consolidation entry The amortized excess value reclassification entry

Answers

Answer:

The accumulated depreciation consolidation entry

Explanation:

In the case when the parent company owns less than 100% of the subsidiary company so the non-controlled interest should be allocated in all the consolidation entries but for the accumulate depreciation it cant be allocated as it does not have any effect on the net income due to which there is no need to distribute the share to the non-controlling interest shareholders

Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of 19% for 2 years followed by a constant rate of 10% thereafter. The firm's required return is 13%. How far away is the horizon date? The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. The terminal, or horizon, date is infinity since common stocks do not have a maturity date.

Answers

Answer:

Holt Enterprises

The terminal, or horizon, date is:

the date when the growth rate becomes constant.  This occurs at the end of Year 2.

Explanation:

a) Recent dividend, DO = $3.50

Expected non-constant growth = 19%

Period of non-constant growth = 2 years

Expected constant rate of growth = 10% after 2 years of non-constant growth

The firm's required return rate = 13%

b) The terminal or horizon date is, therefore, from the end of year 2 or beginning of year 3, when constant growth sets in with the Holt stock.

At the horizon date the dividend, D3, must have grown to $5.42 approx.

Then, the horizon value is given by the formula = D3 / required rate - growth rate

 = 5.42 / 0.13 - 0.01

= 5.42 / 0.03

= $181

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 79,000 Direct labor $ 40,000 Variable manufacturing overhead $ 19,000 Fixed manufacturing overhead 31,000 Total manufacturing overhead $ 50,000 Variable selling expense $ 14,000 Fixed selling expense 22,000 Total selling expense $ 36,000 Variable administrative expense $ 5,000 Fixed administrative expense 27,000 Total administrative expense $ 32,000 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost

Answers

Answer:

Total product cost= $169,000

Explanation:

The product cost is calculated using the direct material, direct labor, and manufacturing overhead:

Direct materials $ 79,000

Direct labor $ 40,000

Variable manufacturing overhead $ 19,000

Fixed manufacturing overhead 31,000

Total product cost= $169,000

Program trading is defined as automated trading generated by computer algorithms designed to react rapidly to changes in market prices. Is it ethical for investment banking houses to operate such systems when they may generate trade activity ahead of their brokerage customers, to which they owe a fiduciary duty?Suppose that you are an employee of a printing firm that was hired to proofread proxies that contained unannounced tender offers (and unnamed targets). Should you trade on this information, and would it be considered illegal?

Answers

Answer:

no

Explanation:

no

Hyundai's Assurance program empathized with American consumers during uncertain financial times, helping to create a psychological and emotional:_______

a. brand association.
b. differentiation strategy.
c. consumer response.
d. marketing campaign.

Answers

The correct answer is B. Differentiation strategy

you need a 20-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend you the money at a 7.1 percent APR for this 240 month loan. However, you can afford monthly payments of $1,000, so you offer to pay off any remaining balance at the end of the loan in the form of a single balloon payment. HOw large will this balloon payment have ot be for you to keep your monthly payments at $1000

Answers

Answer: $337,869.73

Explanation:

Find out the future value of $1,000 given an interest rate of 7.1%. If this amount is less than the future value of $210,000, the difference is added to the final payment to come up with the balloon payment.

The APR needs to be made periodic:

= 7.1% / 12

The $1,000 payment is an annuity so this can be calculated as:

= Annuity * ( ( 1 + rate) ^ number of periods - 1) / rate

= 1,000 * ( ( 1 + 7.1/ 12%) ²⁴⁰ - 1) / 7.1/12%

= $527,297.83

Future value of $210,000

= 210,000 * ( 1 + 7.1/ 12%) ²⁴⁰

= $865,167.56

Balloon payment will be:

= 865,167.56 - 527,297.83

= $337,869.73

A mid-sized firm plans to issue 10 million shares during an IPO. The underwriter plans to sell shares at $24.45; however, many investors believe the company should be valued at $34.25 per share. If the underwriter charges a $1.1 million fee to undertake the IPO, how much will the firm raise in the IPO

Answers

Answer:

The answer is "[tex]\$243,400,000[/tex]".

Explanation:

The medium-sized company proposes to issue 10 million IPO shares.

Its Contractor intends to purchase [tex]$24.45;[/tex] this implies cash flows from

[tex]\to 10,000,000 \times 24.45= \$244,500,000[/tex]

When the contractor pays an IPO cost of million, the company shall

In the IPO this would raise  

[tex]\to \$186,000,000 - \$1,100,000 = \$243,400,000[/tex]

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 10.5 percent on the company's stock.

Required:
a. What is the current stock price?
b. What will the stock price be in 3 years?
c. What will the stock price be in 15 years?

Answers

Answer and Explanation:

The computation is shown below:

1.

Current price = D1 ÷ (Required return - Growth rate)

= (2.15 × 1.04) ÷ (0.105 - 0.04)

= $34.4

2. the stock price be in 3 years is  

= $34.4 × (1.04)^3

= $38.70

3. the stock price be in 15 years is  

= $34.4 × (1.04)^15

= $61.95

Hence, the same should be relevant for the above calculations

Suppose your roommate. Clara is starting à room cleaning business on your campus. There are five potential workers. Each is willing to work for the following daily wage:
Person Daily wage requirement
Alex $110
Diane $130
Cedric $150
Peter $170
Suppose that each person could clean eight rooms in a day and that Clara charges $21 for each room that is cleaned. How marry workers should Clara hire?

Answers

Answer:

3 workers

Explanation:

It is given that Clara is opening a room cleaning business on the campus. For Clara, there are 5 potential workers.

The daily wage of for the worker are :

Alex --- [tex]\$ 110[/tex]

Diane -- [tex]\$ 130[/tex]

Cedric -- [tex]\$ 150[/tex]

Peter -- [tex]\$ 170[/tex]

Zekta -- [tex]\$ 190[/tex]

Each of the worker will clean 8 rooms and $ 21 will be charged for each room to be cleaned.

Therefore, the number of the workers required is :

The marginal revenue product for each worker = 21 x 8 = 168

So, Clara will hire only those workers who have daily wage less than $ 168.

Therefore, Clara will hire 3 workers, namely Alex, Diane and Cedric.

Suppose a project financed via an issue of debt requires six annual interest payments of $20 million each year. If the tax rate is 21% and the cost of debt is 6%, what is the value of the interest rate tax shield

Answers

Answer:

$4,200,000

Explanation:

Given :

Annual interest payment = $20 million

Tax rate = 21%

Cost of debt = 6%

The value of the interest rate tax shield is given by :

The tax rate * annual interest payment

Tax rate = 21% = 21/100 = 0.21

Annual interest payment = $20,000,000

The value of interest rate tax shield = (0.21 * $20,000,000) = $4,200,000

Proponents of the LIFO inventory cost flow assumption argue that this costing method is superior to the alternatives because it results in better matching of revenue and expense. The recent purchase costs to the Cost of Goods Sold account results in better matching of revenue and expense.

a. True
b. False

Answers

Answer: True

Explanation:

The assumption of the LIFO method is that the most recent goods which are added to the inventory of a company have been sold first.

This brings about a better matching of the cost incurred and the revenue since the most recent products added are the ones which are then sold first. Therefore, the correct option is True.

Given the following information for Sookie’s Cookies Co., calculate the depreciation expense: sales = $87,143; costs = $62,695; addition to retained earnings = $1,398; dividends paid = $211; interest expense = $975; tax rate = 27 percent. (Hint: Build the Income Statement and fill in the missing pieces until you get to the depreciation expense. You may have to work from bottom up.)

Answers

Answer:

Net earnings = Dividends Paid + Retained earnings

Net earnings = $211 + $1,398

Net earnings = $1,609

Earnings before tax (EBT) = Net earnings / (1-t)

Earnings before tax (EBT) = $1,609 / (1 - 27%)

Earnings before tax (EBT) = $2,204.11

Earnings before interest and tax (EBIT) = EBT + Interest paid

Earnings before interest and tax (EBIT) =  $2,204.11 + $975

Earnings before interest and tax (EBIT) = $3,179.11

Gross Profit / EBITDA = Sales - Costs

Gross Profit / EBITDA = $87,143 - $62,695

Gross Profit / EBITDA = $24,448

Depreciation = EBITDA - EBIT

Depreciation = $24,448 - $3,179.11

Depreciation = $21,268.89

A stock has an average expected return of 10.1 percent for the next year. The beta of the stock is 1.45. The T-Bill rate is 5.5% and the T-Bond rate is 3.5 %. What is the market risk premium?
a. 3.17%.
b. 4.60%.
c. 14.60%.
d. 2.48%.
e. 4.93%.

Answers

Answer:

The right solution is "4.55%".

Explanation:

Given that,

Expected return,

= 10.1%

Risk-free rate,

= 3.5%

Beta,

= 1.45

Now,

The market risk premium will be:

⇒ [tex]Expected \ return=Risk-free \ rate+Beta\times (Market \ risk \ premium)[/tex]

⇒ [tex]Market \ risk \ premium=\frac{Expected \ return-Risk -free \ rate}{Beta}[/tex]

By putting the values, we get

⇒                                      [tex]=\frac{10.1-3.5}{1.45}[/tex]

⇒                                      [tex]=\frac{6.6}{1.45}[/tex]

⇒                                      [tex]=4.55[/tex] (%)

How to wear black formal shoes?

Answers

Answer:

Go in for a traditional shirt-jeans outfit and pair it with black formal shoes. A plaid shirt, pair of blue jeans and black dress shoes is how you'll want to rock it! Get that macho look right by wearing a leather jacket over a formal shirt and jeans. Your shoes will complement the jacket perfectly.

Explanation:

White and black is always a vibe. White button up and jeans or dress pants

The price of soybean futures has increased over the last three months. As a soybean equipment supplier, how should you respond?

Answers

Answer:

Ask for a raise

Explanation:

bring in more soybeans

State and explain ways to set-up business in domestic market?

Answers

Answer:

Explanation:Buy products in bulk to sell.

Sell homemade products you make yourself.

Start a dropshipping store.

Start a print-on-demand store.

Sell your service or expertise.

Productize your service or expertise.

Grow an audience you can monetize.

Buy an existing ecommerce business.

Which of the following statements is CORRECT?

a. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will increase.
b. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. Without additional information, we cannot tell what will happen to the ROE.
c. The Du Pont equation provides information about how operations affect the ROE, but the equation does not include the effects of debt on the ROE.
d. Other things held constant, an increase in the debt ratio will result in an increase in the profit margin on sales.
e. Suppose a firm’s total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will decrease.

Answers

Answer:

a. Suppose a firm's total assets turnover ratio falls from 1.0 to 0.9, but at the same time its profit margin rises from 9% to 10% and its debt decreases from 60% of total assets to 40%. Under these conditions, the ROE will increase.

Explanation:

Asset turnover ratio of a firm is sales divided by total assets. If this ratio falls the revenue of the firm has declined, but since the profit margin has increased means company has made efforts to cut down its expenses and cost. If the debt has decreased then its equity portion will increase resulting in ROE to increase.

Explain in your own words what is known as a business?

Answers

Explanation:

a business is a company owned by someone. it could be a retail, trade, or occupation. they sell goods and needs

A business is a persons regular occupation profession or trade

Renaissance Creations restores antique stained glass windows. All jobs generate some breakage or improper cuts. This scrap can be sold to stained glass hobbyists. Renaissance Creations expects to incur approximately 90,000 direct labor hours during the year. The following estimates are made in setting the predetermined overhead rate for the year: Overhead costs other than breakage $594,400 Estimated cost of scrap $50,400 Estimated sales value of scrap (14,800) 35,600 Total estimated overhead $630,000 One job that Renaissance Creations completed during the year was a stained glass window of the Pierce family crest that took 250 hours, and direct labor is invoiced at $20 per hour. Total direct material cost for the job was $1,780. Scrap that was generated from this job was sold for $186. a. What was the predetermined overhead rate (set on the basis of direct labor hours) for the year

Answers

Answer:

Renaissance Creations

Predetermined overhead rate is:

= $7

Explanation:

a) Data and Calculations:

Expected direct labor hours = 90,000

Overhead costs other than breakage $594,400

Estimated cost of scrap           $50,400

Estimated sales value of scrap (14,800)  35,600

Total estimated overhead                   $630,000

Predetermined overhead rate = $7 ($630,000/90,000)

Job done for the Pierce family:

Total direct labor hours = 250

Cost charged for direct labor =   $5,000 ($20 * 250)

Cost of direct materials =               1,780

Overhead cost ($7 * 250) =           1,750

Sales value of scrap =                     (186)

Total costs incurred for the job $8,344

Goofy Inc.'s bonds currently sell for $925. They pay a $80 annual coupon, have a 25-year maturity, and a $1,000 par value. Compute the expected capital gain percentage for this year. (State as a percent, but do not include the percent sign and round to the second decimal place. Thus, 9.8765% would be written as 9.88 to be correct). (Hint: first compute the YTM and then find the capital gain.

Answers

Answer and Explanation:

The computation of the YTM is shown below:

Given that

Future value be $1,000

NPER is 25

PMT is $80

Present value is $925

The formula is shown below:

=RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the yield to maturity is 8.75%

Now the capital gain is

= 8.75% - ($80 ÷ $925)

= 8.75% - 8.65%

= 0.10%

Using information that was accurate in the year 2012, categorize each member state according to whether it was a member state using the euro, a member state not using the euro, or not a member state.
You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop.
European Union member state using the euro
European Union member state not using the euro
Not a member of the European Union

Answers

Answer:

European Union member state using the euro.

SlovakiaFrance Italy

All three of the above nations are members of the EU using the Euro which enables easier transactions with the rest of the Union. France still prints and manages their old currency, the Franc for its previous colonies in West Africa.

European Union member state not using the Euro.

SwedenUnited KingdomHungary

These three countries still use their own currency with Sweden using the Krona, the British still using the Pound and the Hungarians still using the Forint. The British were still members of the EU in 2012 but have since left the Union.

Not a member of the European Union

UkraineNorway

These two nations are not part of the EU but have very significant ties to the European Union's markets.

As we’re well aware, vending machines are used to sell snacks and beverages, whereas newspapers are sold out of a box that allows anyone to take more than one paper. How does the concept of diminishing marginal utility explain the different distribution techniques for newspapers vs. snacks and beverages? Identify two additional examples of an item whose diminishing marginal utility is high. Remember: Marginal utility is the change in total utility that results from a one-unit increase in the quantity of a good consumed; diminishing marginal utility is the general tendency for marginal utility to decrease as the quantity of a good consumed increases.

Answers

Answer:

Because people do not need a second newspaper, it will not bring any more information to their lives, rather than a second soda can or snack.

Explanation:

The law of diminishing marginal utility states that there are some products or services to which an increase in the consumption will not bring the same utility for the user as the right amount, for example, if you eat a slice of pizza, it will bring certain benefit, you'll be less hungry but if you eat 7 slices of pizza at some point you'll no longer be hungry and it will rather make you sick, in this case vending machines have a higher marginal utility, a person could drink 3 or 4 drinks or take 4 or 5 snacks before it makes them feel sick, whilst a person that buys a person buying a newspaper won't need a second one, even if it is for his/her family, a 5 people house has enough newspaper by taking 1 copy of it.

Other examples of this can be a vacuum cleaner, you don't need a second one if you already have one, or a house buying a second house ain't as necessary as the first one.

Suppose a local college has tasked you to develop a database that will keep track of students and the courses that they have taken. In addition to tracking the students and courses, the client wants the database to keep track of the instructors teaching each of the courses. Use the internet to research the types of information that a college would want to track in a database. Focus your attention on information that could represent entities within a database as well as attributes of such entities.
1. Describe the purpose of the database.
2. Based on your research and / or common knowledge of a college and the information tracked by a college, describe the entities of the database and the attributes of each entity.
3. Based on your research and / or common knowledge of a college and the information tracked by a college, describe the business rules that could impact the structure of the database.
4. Determine the information that the conceptual model of the database would include and determine the information that the physical model of the database would include.

Answers

Answer:

To explain the given statement as follows,

Explanation:

1. Purpose of the database:-The purpose of a database is to hoard records. you'll take some quiet data and apply relationships to tow the info into a touch else valuable for business, for tracking fixed charge, etc. A database is worn to collect and arrange data. A database may be a set of data that are prepared in order that it can simply access, direct, and restructured. In one vision, databases are often confidential consistent with sorts of pleased: bibliographic, full-text, numeric, and imagery. Although an electronic report like one shaped in Microsoft Access could also be previous that involves the brain there are many non-automated database editions also, like a personal phone and ask book. A database can just be an inventory that's put aside written or typed on the article, during a computer worksheet or data processing text. this type of database, term a fil, consists of 1 table by rows with a column of knowledge. for instance, a simple database for a small business may need only two features, product name or variety, and price.

2. Describe entities of database and attributes of each entity:-An entity type symbolizes a clear object form. during a real-world model, an entity type may be a vital business entity that holds quite one asset. we'll just call an entity, in its place of an entity type, as in many observe. A relationship type signifies a connection alongside some entities. during a real-world model, a relationship represents a connection that desires to be considered by the database scheme. A relationship type is in a position to be unary, binary, or n-ary counting on whether the figure of entities drawn within the relationship is 1, 2, or further than 2.An attribute is an asset that's worn to inform an entity or a relationship. Prompt that a touch method doesn't permit an attribute during a relationship. An attribute that's a primary key of 1 more relative may be a term far off-key. An entity set may be a set of related entities. An attribute explains assets allied with entities. An attribute will contain a reputation also as a worth for each entity. a website label a group of allowable ideals for an attribute. An entity type is worn to be both a kind of entity with the entity set or gathering of entities of that kind that subsist within the database. In many cases, an entity type has many sub-groupings of its entities that are significant and need to be signifying openly due to their aiming to the database relevance.

3. Describe business rules that could impact the structure of the database:- Business rules subsist for a union whether or not they're yet written along, talk as regards, or yet a bit of the organization’s awareness. Business rules are resultant as an outline of operations. As its name implies, a narrative of operations is an exhaustive tale that explains the operational surroundings of a union. Such a report wants huge accuracy and facet.  Because these mechanisms shape the basis for a database intend, the wary derivation and clarity of business rules are vital to a fine database plan. the info is often measured major only behind business rules are distinct, lacking them it’s now recorded, bar to a business they're the individuality that's definite and sees by the corporate. Business Rules assist employee’s hub off and apply the trial inside the organizations setting. Identify and deed business policy is extremely essential to the database design.

4. Determine information conceptual model of the database & that physical model of the database would include:-

Logical Modeling:- Logical modeling pact with crowd business necessities also converts those necessities into a model. The logical model turns almost the desires of the business, not the database while the desires of the business are worn to make the desires of the database. Logical modeling occupies crowd information regarding the business course, business unit also organizational unit. Behind this information is collected, diagrams and hearsay are formed with entity-relationship diagrams, business procedure diagrams, and eventually process flow diagrams.

Physical Modeling:- Physical modeling occupies the important intention of a database consistent with the necessities that were reputable through logical modeling.  Physical modeling contract with the change of the logical or business model keen on an electronic database model. In physical modeling, objects like tables and columns are shaped stand on entities and attribute that be distinct in logical modeling. Restraint is additionally defined, with primary keys, foreign keys extra unique keys with check restraint. Physical modeling is while the whole piece comes mutually to entire the method of major a database pro a business.

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