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daser333 [38]
1 year ago
13

Indexation refers to a process of adjusting the nominal interest rate so that it is equal to the real interest rate. O using a l

aw or contract to automatically correct a dollar amount for the effects of inflation. O using a price index to deflate dollar values. an adjustment made by the Bureau of Labor Statistics to the CPI so that the index is in line with the GDP deflator.
Business
1 answer:
Bond [772]1 year ago
4 0

Indexation is the process of using a statute or contract to automatically adjust a dollar amount for the impacts of inflation to bring the nominal interest rate into line with the actual interest rate.

<h3>What is Indexation?</h3>

Indexation refers to the process of changing a price, wage, or other value in response to changes in another price or a group of related values. Indexation can be used to account for changes in prices and costs across regions, as well as to account for the effects of inflation, cost of living, and input prices over time. Deindexation is the unwinding of indexation, which is a mechanism to adjust income transfers using a price index in order to maintain the public's purchasing power after inflation. The purchase price of an investment is modified through indexation to account for the impact of inflation on it. Lower earnings result from a greater purchasing price, which in turn results in a lower tax. 

To learn more about indexation click,

brainly.com/question/4692093

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E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
tensa zangetsu [6.8K]

Answer:

$63.27

Explanation:

Calculation of how much should you pay on the stock today

First step

The Price of stock 19 years from now will be:.

20/0.075

= 266.67

Second step

The Price of stock today will be :

The price of stock from 19 years from now which is:

250 / (1.075)^19

=250/3.951489

=$63.27

Therefore how much should you pay on the stock today will be $63.27

5 0
3 years ago
Please help me asap!!!
melomori [17]

Answer:

Finder's fee. good luck dude

6 0
3 years ago
NewKirk Inc.., is an unlevered firm with expected annual earnings before taxes of $21 million in perpetuity. The current require
IrinaVladis [17]

Answer:

$11,895,000

Explanation:

Expected annual earnings before tax = $21,000,000

Debt issue = $30,000,000

Interest rate = 9%

Annual Interest expenses = $30,000,000 × 9%

= $2,700,000

EBT = EBIT - Interest expenses

= $21,000,000 - $2,700,000

= $18,300,000

Net income = $18,300,000 × (1 - 35%)

= $11,895,000

Cash flows available to equity holders after recapitalization will be $11,895,000.

8 0
3 years ago
Oriole Company gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per book
noname [10]

Answer:

$23490

Explanation:

Update the Cash Book by recording the items that appear in the Bank Reconciliation Statement and not in the Cash Book.

Cash Book

Debit  :

Balance before adjustments                    $19,800

Notes receivable and interest                   $4,880

Totals                                                        $24,680

Credit :

Bank charge                                                   $100

Dishonored check                                      $1,090

Balance (adjusted)                                   $23,490

Totals                                                        $24,680

8 0
3 years ago
​Healthier, more educated workers tend to be more productive. Greater overall productivity per hour worked is a fundamental comp
Alja [10]

Answer:

A. the brain drain.

Explanation:

<em>Brain drain is a social phenomenon in which skilled individuals seek a more favorable professional opportunity and a higher standard of living outside of their countries. </em>This can be avoided by improving health and​ education, developing countries can generate economic​ growth, and increase incomes as the question says.

I hope you find this information useful and interesting! good luck!

5 0
3 years ago
Read 2 more answers
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