All categories

2 years ago

A basic interest rate that is not adjusted for inflation is called a(n)___ interest rate.

Business

1 answer:

Montano1993 [528]2 years ago

8 0

A basic interest rate that is not adjusted for inflation is called a nominal interest rate.

<h3>What is Inflation?</h3>

It should be noted that inflation simply means the increase in the prices of goods and services.

In this case, nominal interest rate is the basic interest rate that is not adjusted for inflation.

Learn more about interest rate on:

brainly.com/question/25793394

#SPJ1

You might be interested in

You buy a $100 ticket to a theme park and once inside you can ride on as many rides as you want at no extra cost. In this case,

Darina [25.2K]

You buy a $one hundred price ticket to a theme park and once inside you may experience as many rides as you need at no extra cost. In this case, the possible value of happening every experience could be zero. False

The cost denotes the amount of money that an employer spends on the creation or manufacturing of goods or offerings. It does now not encompass the markup for income. From a vendor's point of view, a fee is the quantity of money that is spent to provide an excellent product.

Charges are the economic fee of expenses for substances, services, hard work, products, gadgets,s and other objects purchased to be used through a commercial enterprise or other accounting entity. it is the amount denoted on invoices because the rate recorded in the e-book preserves data as a price or asset cost basis.

Cost, in commonplace utilization, is the monetary price of goods and offerings that manufacturers and customers buy. In a primary monetary experience, the cost is the degree of the opportunity possibilities foregone inside the preference of 1 accurate or hobby over others. This essential price is usually referred to as possible value.

Learn more about cost here: brainly.com/question/2021001

#SPJ4

5 0

1 year ago

The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit. Its variable cost is $3

Anna35 [415]

Answer:

The right solution is "$30".

Explanation:

Unless the Plastic Division requires additional production, the Plastic Division would at minimum try to offset its operating expenses even though they have excess extra units which offer.
The variable price seems to be $30 per item, so $30 seems to be the minimum determine the prevalence or transferable price.

8 0

3 years ago

"A customer who is long 1 ABC Jan 40 Call wishes to create a "bear call spread." The second option position that the customer mu

irakobra [83]

Answer:

Short 1 ABC Jan 30 Call

Explanation:

Investors create a "bear call spread" by first purchasing a call option at a certain price (in this case 40), and then selling an equal amount of calls with a lower price (in this case 30). Both call options expire must expire at the same date. The investors will do this because they believe that the price of an asset will decrease, that is why it is called a bear spread.

5 0

3 years ago

Targaryen Corporation has a target capital structure of 75 percent common stock, 10 percent preferred stock, and 15 percent debt

erastova [34]

Answer:

WACC = 0.07961 or 7.961% rounded off to 7.96%

After tax cost of debt = 0.0474 or 4.74%

Explanation:

The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.

The formula for WACC is,

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component

r represents the cost of each component

D, P and E represents debt, preferred stock and common stock respectively

WACC = 0.15 * 0.06 * (1 - 0.21) + 0.1 * 0.05 + 0.75 * 0.09

WACC = 0.07961 or 7.961% rounded off to 7.96%

The after tax cost of debt is calculated by multiplying the cost of debt by (1 - tax rate) to adjust for the tax advantage provided by debt as interest payments on debt are tax deductible.

After tax cost of debt = 0.06 * (1 - 0.21)

After tax cost of debt = 0.0474 or 4.74%

7 0

3 years ago

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. June 1 Purchased raw m

Gelneren [198K]

Answer:

raw materials 20000 debit

accounts payable 20000

WIP 8000 debit

factory overhead 1000 debit

raw materials 9000 credit

WIP 84000 debit

factory overhead 24000 debit

wages payables 108000 credit

factory overhead 10100 debit

cash 10100 credit

WIP 49000 debit

factory overhead 49000 credit

Finished Goods 18000 debit

WIP inventory 18000 credit

COGS 15000 debit

Finished Goods 15000 credit

Explanation:

The indirect materials and labor will be considered actual factory overhead thus debited into that account

same procedures applies to the repair and utilities paid in cash we have to posted into factory overehad

from the cost sheet we determiante 7,000 labor hours we apply the $7 overhead rate per our to get the amount of applied overhead

The finished goods will increase while the WIP inventory decrease by the ammount transferred out

The COGS is an expense which decreases our finished goods inventory as we sale them and are no longer in our possesion.

5 0

3 years ago