Answer:
The correct answer is letter "A": raises the opportunity cost of holding dollars.
Explanation:
An interest rate is the cost of borrowing money or the compensation for assuming the risks for lending money. Interest is a cost for one party and income for another. As interest rates increase, people will tend to spend less money so, by keeping it saved, <em>the money earns more value</em> as a form of interest.
Answer:
Place
Explanation:
The four P's of marketing is a number of tactics employed in a marketing plan to achieve better sales of a product. These four P's include; Price, Place, Promotion, and Product. The place factor takes note of the location where the target customers are most likely to be reached. To achieve better sales of a product, it is very important that the right location is chosen so that consumers who are interested in it can access it easily. For example, it would make no sense to sell grocery products in a boutique. That is not where the target customers are.
So, when the marketing manager of Demeter Perfumes decided to market the perfume in a limited number of very exclusive specialty stores, it is because that place is where the target market (most likely, high income earners), can be found easily.
Answer: $770.22
Explanation:
If she makes equal contributions then those would be annuities. The $9,000 she wants to have will be the future value of the amount currently in her account and the annuity.
9,000 = 5,000 ( 1 + r) ^ n + ( annuity * future value interest factor of an annuity, 9%, 3 years)
9,000 = 5,000 ( 1 + 9%) ^ 3 + ( Annuity * 3.2781)
9,000 = 6,475.145 + 3.2781 * Annuity
Annuity = (9,000 - 6,475.145) / 3.2781
Annuity = $770.22
Answer:
Explanation:
For recording the transactions, the first step is to analyze each transaction from the source documents. After that reporting these transactions in a journal form. After that posting the entries to their respective accounts and then it would help to prepare the trial balance
The steps are shown below:
1. Analyze each transaction from source documents.
2. Record relevant transactions in a journal.
3. Post journal information to ledger accounts.
4. Prepare and analyze the trial balance.
If Professor Siegel is correct that stocks are less risky than bonds, then the risk premium on stock may be zero. Assuming that the risk-free interest rate is 2.5 percent, the growth rate of dividends is 1 percent and the current level of dividends is $70, use the dividend-discount model to compute the level of the S&P 500 that is warranted by the fundamentals.
Instruction: Round your response to 2 decimal places.
The level of the S&P 500 is
Answer:
Dividend discount model:
Price= D(1+g)/r-g
g=growth rate 1%
r= as given in question risk free rate 2.5%
D₀= $70
D₁=$70(1+0.01) with growth rate
Solution:
70(1+0.01)/(0.025-0.01)
=$4713.33
