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Answer:
Nominal GDP in year 1 = $16
Nominal GDP in year 2 = $25
Nominal GDP in year 3 = $36
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
Nominal GDP is GDP calculated using current year prices
Nominal GDP in year 1 = 4 x $4 = $16
Nominal GDP in year 2 = 5 x $5 = $25
Nominal GDP in year 3 = 6 x $6 = $36
Answer:
The answer is 6.72%
Explanation:
Calculating the imputed rate from a discount bond as follows:
( 1 + i )^n = FV / PV
( 1 + i )^3 = FV / PV, here FV= 1000 and PV= 727.25
so putting values in equation we have:
( 1 +i )^3 = 1000 / 727.25
( 1 + i )^3 = 1.375
solving for i
( 1 + i) = 1.375^1/3
( 1 + i ) = 1.112
i = 0.112 before tax rate
0.112 * (1 - tax rate) = after tax interest rate
0.112 * .60 = 0.0672 = 6.72%
thus the expected after tax cost of this debt issue is 6.72%
Answer: Organizational culture.
Explanation:
The management at Enron Corporation are building an organizational culture of making profit by all means regardless of how it is made. An Organizational culture is what is expected from workers of an organization, this culture is normally developed overtime.