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2 years ago

Based on the example in the video, given the raise you received you would be worse off if inflation is

1 answer:

8 0

Based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.

<h3>What is an inflation?</h3>

This refers to the rate of increase in prices over a given period of time and also known as the overall increase in prices or the increase in the cost of living in a country.

Usually, when we are evaluating a raise, we must account for the rate of inflation over the course of a year because if the inflation rate is greater than the percentage raise in the wage, then, one is worse off because the real income will fall.

Hence, based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.

Read more about Porter strategy

<em>brainly.com/question/24843525</em>

5 0

3 years ago

The Heuser Company’s currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Heuser believes it could issue n

liraira [26]

Answer: After-tax cost of debt is 7.8%.

Explanation:

Given that,

coupon = 10% (outstanding bonds)

yield to maturity (YTM) = 12%

marginal tax rate = 35%

The after-tax cost of debt:

After-tax cost of debt = YTM (1 - Tax rate)

= 12% (1 - 0.35)

= 0.12 (0.65)

= 0.078

= 7.8%

YTM is used in the after-tax calculation because it represents the true pre-tax cost of debt to the issuer.

Therefore, the after-tax cost of debt is 7.8%

7 0

4 years ago

Imagine you borrow $1,100 from your roommate, agreeing to pay her back $1,100 plus 7 percent nominal interest in one year. Assum

MAXImum [283]

Answer:

Dollar amount that you have to pay = $1.179,52

Dollar amount of interest results of real rate = $40,03

Explanation:

First of all, you have to convert the annual interest rate to annual efective rate with the next procedure:

a) transform annual interest rate to monthly interest rate:

Monthly interest= (7%/12) = 0,58%

b) Now you have to convert to annual efective rate

Annual effective : =((1+0,58%)^(12))- 1 = 7,23%

Now that you has this rate, you can calculate how much money you have to pay at the end of the year with the formula of future value:

FV= amount monye borrowed *(( 1+7,23%)^(1))

FV $1.100 *(1+7,23)

FV= $1.179,52

Secondly, you need to have to do the same procedure with the inflation

FV= amount monye borrowed *(( 1+3,59%)^(1))

FV $1.100 *(1+3,59%)

FV= $1.139,49

Now if you have to make the next operation and find the difference between the amount of the value that you have to pay to your friend and substract the calculous

amount of the interest payment is the result of the real rate

$1.179,52 - $1.139,49 = $40,03

8 0

4 years ago

I need help! I want to make a dog walking, rescuing, and training business and I don't know how to convince my parents to let me

mixer [17]

You could start out by finding out how much demand there is for this kind of service. Go around your neighborhood and ask how likely everyone would be to utilize a dog walking or training business, and how much they would be willing to pay for such a service. Alternatively, you could create a survey online and send it to groups within your city. You can create a survey using Google Forms.

If there is enough demand for it and if the price is right, then present this information to your parents. This way you can show them that you're very serious about starting your own business and you have the know-how to do so.

Starting out with just a focus on dog-walking could be great, and then you could expand from there to training. If you have a good sized yard or a nearby dog park to work at for training, then you're set. After that you can move on to dog rescuing. Of course, you will need more space for rescuing dogs and will definitely need at least a yard.

Good luck with your parents and good luck with the business!

7 0

3 years ago

From a poll of people who recently bought cold medicine at all stores of a large drugstore chain, investigators concluded that

gavmur [86]

Options:

(A) participation bias

(B) Both selection and participation bias

(D) There is probably no source of bias in the study.

Answer:(C) Selection bias only

Explanation: Selection bias is a bias introduced during the selection process of a sample in such a way that the samples population does have or is not a proper representation of the entire population.

This type of bias is also known as SELECTION EFFECT.

Selection bias can also be described as the distortion of Statistical analysis due to the inappropriate sample collection process, if selection of sample is not adequately done,the conclusion or outcome of the study will be false.

6 0

4 years ago