Answer:
a. less wealthy and they buy less.
Explanation:
we are assuming a situation where the price level rises (inflation rises), so anyone holding cash will be able to purchase a smaller amount of goods with the same amount of cash simply because the goods are more expensive. E.g. you purchased 10 goods with $100, but if the inflation rate increases to 10%, you will be able to purchase only 9 goods with the same $100. As inflation rises, people holding cash (or other monetary form) will lose wealth and purchasing power.
Answer:
$180
Explanation:
Calculation to determine Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.
Using this formula
Warrant liability=Numbers of mixers sold × Percentage of mixers returned for repair or replacement ×The average cost to ship a mixer
Let plug in the formula
Warrant liability=30 x 10% x $60
Warrant liability=$180
Therefore Cookie Creations’ warranty liability for the shipping costs at December 31, 2020 will be $180
Answer:
the intrinsic value of the stock is $60
Explanation:
The computation of the intrinsic value of the stock is as follows:
But before that the cost of equity is
The Cost of Equity is
= Risk Free Rate + Beta × (Market Return - Risk Free Rate)
= 8% + 0.80 × (18% - 8%)
= 16%
Now
Intrinsic Value is
= Next year Dividend ÷ (Rate of Return - Growth rate)
= $3 ÷ (16% - 11%)
= $60
hence, the intrinsic value of the stock is $60
Answer:
Transactional leadership style
Explanation:
Transactional leadership style is where the leader is focused on the overall goals of the company and getting things done instead of building a more long term social relationship. The leader is focused on a more professional relationship which benefits all the involved parties in such a way that is limited to the company only.
Because they may have extra work to do, or possibly over time, or even just to dedicated to their work for other things.
