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PIT_PIT [208]
2 years ago
12

If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices

to?
Business
1 answer:
kati45 [8]2 years ago
4 0

If interest rates increase due to inflation, but expected cash flows to a firm do not change, then you would expect stock prices to decline.

The current stock price is the present value of all future cash Inflows. So if the hobby fee will increase, then the discounting factor will grow, so the existing price of the destiny inflows will decrease, and the inventory charge will fall.

In economics, inflation is a popular increase in the expenses of products and services in an economic system. whilst the overall fee degree rises, each unit of foreign money buys fewer items and services; therefore, inflation corresponds to a reduction in the shopping power of money.

Higher interest costs imply better borrowing fees, human beings will sooner or later begin spending less. The call for goods and services will then drop, as a way to cause inflation to fall.

Learn more about inflation here brainly.com/question/8149429

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You might be interested in
Vijay Company reports the following information regarding its production costs. Direct materials $ 9.40 per unit Direct labor $
andriy [413]

Answer:

Unitary cost= $38.2

Explanation:

Giving the following information:

Direct materials $9.40 per unit

Direct labor $19.40 per unit

Variable overhead $ 9.40 per unit

<u>The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead) to calculate the unitary cost.</u>

UNitary cost= 9.4 + 19.4 + 9.4

Unitary cost= $38.2

8 0
3 years ago
Real estate licensee kimmy is involved in a dispute with another licensee, titus. kimmy prefers to use ______ to resolve the iss
Bezzdna [24]

Real estate licensee kimmy is involved in a dispute with another licensee, titus. kimmy prefers to use Mediation to resolve the issue, because she wants to preserve her working relationship with titus.

Mediation

An unbiased third person helps opposing parties resolve dispute via the use of specialized communication and negotiation strategies in mediation, which is a structured, interactive process. We urge active participation from each and every mediator participant. In that it is primarily concerned with the needs, rights, and interests of the parties, mediation is a "party-centered" process. To steer the discussion in a positive direction and assist the parties in arriving at their best resolution, the mediator employs a wide range of strategies. A mediator manages the interactions between parties and encourages honest dialogue, which is an example of facilitation. In addition, the mediator evaluates the concerns and pertinent standards ("reality-testing") without giving the parties any prescriptive advice.

To learn more about Mediation

brainly.com/question/25850228

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4 0
2 years ago
Swansea Finishing produces and sells a decorative pillow for $100.00 per unit. In the first month of operation, 2,000 units were
Cloud [144]

Answer:

$41,400

Explanation:

Swansea Finishing

Variable cost of goods sold = Variable manufacturing costs × Units Sold

Variable manufacturing costs $23.00

Units sold $1,800

Hence:

$23.00 × 1,800 units

= $41,400

Therefore the cost of goods sold using variable costing is $41,400

6 0
3 years ago
After the computers dns cache is cleared, where will it most likely look to resolve the domain name the next time you enter ceng
SpyIntel [72]

After the computers dns cache is cleared, where it will most likely look to resolve the domain name the next time you enter cengage.com in your browse to The ISP's DNS server.

An ISP which stands for internet service provider is a company that plays a key role in providing individuals and organizations the access to the internet and other related services like browser.

The Domain Name System or the DNS is a term that is used for the hierarchical naming system which is used to identify computers through the Internet. Especially through the help of an IP address in short.

To learn more about domain here

brainly.com/question/13718390

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3 0
2 years ago
What is home equity?
mariarad [96]

Answer:

A proportion of your property that you truly own.

Explanation:

Home equity is a homeowner's interest in a home. It can increase over time if the property value increases or the mortgage loan balance is paid down.Put another way, home equity is the portion of your property that you truly “own.” You're certainly considered to own your home, but if you borrowed money to buy it, your lender also has an interest in it until you pay off the loan.

Btw I found this in a website

Hope this helps

5 0
3 years ago
Read 2 more answers
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