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1 year ago

The situation where the buying power of money in terms of goods and services increases is called:_____

Business

1 answer:

Alla [95]1 year ago

6 0

The situation where the buying power of money in terms of goods and services increases is called deflation

In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.

Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.

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The cost of perpetual preferred stock is found as the preferred's annual dividend divided by the market price of the preferred s

VikaD [51]

Answer: A

Preferred share dividends are distributions of profits and not interest payments. Thus not tax-deductible.

5 0

3 years ago

Rents of $750.00 per month on each unit of a 4-plex are current. for an october 16th closing, the rent proration on the settleme

Lady bird [3.3K]

Rents of $750.00 per month on each unit of a 4-plex are current. For an October 16th closing, the rent proration on the settlement statement would be $1,548.38 Credit Buyer & Debit Seller.

-Seller must pay buyer for the days the buyer owns the property, Oct 16 - 31, 16 days. $750 x 4 /31 = $96.77 per day x 16 = $1548.38

<h3>What does it mean to prorate your rent?</h3>

The amount a landlord charges is referred to as "prorated rent" and is only applied to the days the unit is occupied when a resident occupies it for a short period of time (a month, week, day, etc.). Given that daily rates are frequently more expensive, it is based on monthly rates instead than daily rates.

You must first determine the daily rent in order to figure out how much prorated rent will be. Divide the overall rent payment by the number of days in a month to arrive at this. Then double the acquired daily rent amount by the number of days you will be occupying the property during that month.

To learn more about rent proration visit:

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5 0

1 year ago

Arrange the steps for conflict resolution in proper sequence. Every individual involved in the conflict is encouraged to offer a

Lyrx [107]

-Individuals involved in the conflict is encouraged to come together.

-Every individual involved in the conflict expresses his or her opinion in an open manner.

-Every individual involved in the conflict is encouraged to offer a solution.

-Discuss all the solutions and decide on the one that satisfies everyone.

8 0

3 years ago

Assume today is December 31, 2019. Imagine Works Inc. just paid a dividend of $1.25 per share at the end of 2019. The dividend i

lidiya [134]

Answer:

Value of stock = $47.99

Explanation:

The price of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return.

Year Present Value

1 1.25× 1.15^1 × 1.095^(-1) =1.31

2 1.25× 1.15^2 × 1.095^(-2) = 1.38

3. 1.25× 1.15^3 × 1.095^(-3)= 1.45

Present value of Dividend in Year 4 and beyond

This will be done in two steps

Step 1

PV in year 3 terms

= Dividend in year 4× (1.06)/(0.095-0.06)

1.25× 1.15^3 × 1.06/(0.095-0.06)=57.57

PV in year 0 terms =

PV in year 3 × 1.095^(-3)

=57.5759 × 1.095^(-3)= 43.852

Value of stock = 1.3 + 1.38 + 1.45 + 43.852= $47.99

Value of stock = $47.99

5 0

2 years ago

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missin

tankabanditka [31]

Answer:

For 2013:

Net sales = $279,000

Ending inventory = $32,000

Purchases = $242,000

For 2014:

Sales revenue = $360,000

Cost of Goods sold = $269,000

Ending inventory = $24,000

For 2015:

Net sales = $390,000

Sales returns and allowances = $20,000

Beginning inventory = $24,000

Ending inventory = $31,000

Explanation:

Note: See the attached excel file for the tabulated income statement data to see the filled missing amounts. The answers are the ones in bold red color.

For each of the years, the calculations are done as follows:

For 2013:

Net sales = Sales revenue - Sales returns and allowances = $290,000 - $11,000 = $279,000

Ending inventory in 2013 = Beginning inventory in 2014 = $32,000

Purchases = Cost of Goods sold - Beginning inventory + Purchase returns and allowances – Freight-in + Ending inventory = $233,000 - 20,000 + 5,000 - 8,000 + $32,000 = $242,000

For 2014:

Sales revenue = Sales returns and allowances + Net sales = $13,000 + $347,000 = $360,000

Cost of Goods sold = Net sales - Gross profit on sales = $347,000 - $91,000 = $269,000

Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $32,000 + $260,000 - $8,000 + $9,000 - $269,000 = $24,000

For 2015:

Net sales = Cost of Goods sold + Gross profit on sales = $293,000 + $97,000 = $390,000

Sales returns and allowances = Sales revenue - Net sales = $410,000 - $390,000 = $20,000

Beginning inventory in 2015 = Ending inventory in 2014 = $24,000

Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $24,000 + $298,000 - $10,000 + $12,000 - $293,000 = $31,000

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5 0

3 years ago