Answer:
D. nominal interest rate minus the inflation rate.
Explanation:
The real interest rate has been adjusted for inflation.
If nominal interest rate is 6% and inflation is 2%, then the real interest rate would be 4%.
I hope my answer helps you
Ancient religious structures
Answer: Moral hazard
Explanation: As per economic principles, if an individual increases the exposure to risk when covered by insurance, moral hazard happens, particularly when an individual takes further risks just because someone carries the burden of all those consequences.
There can be a moral hazard at which one party's policies may modify to the disadvantage of someone else after a business transaction has occurred. Moral hazard may arise through a type of asymmetric information in which the threat-taking group to trade is more aware of its motives than the person bearing the risk's implications.
Thus, from the above we can conclude that the correct option is A .
Answer:
The most likely factor that this department store company would have considered in discontinuing its credit card operations is the issue of bad debt.
Bad debt may likely have prevented them from making the required profit to cater for the needs of the company such as payment of salaries and purchase of goods which if not treated may lead to the collapse of the company.
Answer:
$19.47
Explanation:
The computation of the price paid for share is shown below:
= Year second dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.20 + $2.20 × 2.2%
= $2.20 + $0.0484
= $2.2484
In the year 2 , it is
= $2.2484 × 1.022
= $2.2978648
And, the required rate of return is 14%
Plus the growth rate is 2.2%
So, the price paid for the share is
= ( $2.2978648) ÷ (14% - 2.2%)
= $19.47
