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1 year ago

During which period does the fed appear to be most anti-inflation? explain your answer

1 answer:

5 0

In most of the 1970 period, the fed appear to be most anti-inflation. The United States has been experiencing a pattern of rising prices since the late 1960s.

Inflation refers to an overall rise in the cost of goods and services throughout a nation. Inflation in United States started gradually increasing from yearly rates that had previously been less than 2 percent for several years.

The Federal Reserve tightened policy in 1973 in response to rising inflation rates. However, the Fed loosened its stance before adequately controlling inflation in response to increased unemployment. In December 1976, the annual inflation rate reached a low of 5% before rising once more.

According to the personal consumption expenditure index, prices had increased 7.7% from the previous year by January 1979, raising concerns that inflation would continue to climb. Concern was also raised regarding the US currency, which had declined 13% in value versus.

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Market value per share is:

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Answer:

The answer is a. Market value per share is the price at which a stock is bought and sold.

Explanation:

For shares that are listed in the stock exchange, the market value per share is the price of share at which share is currently traded. In other words, this is the fair value of the share and at this price, share can be readily sold or bought.

(b) is not correct because it describes the commitment (usually made by an investment bank) to purchase newly issued shares at predetermined price when those shares are not purchased by other investors in the market.

(d) describes Preemptive right rather than the definition of market value per share.

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3 years ago

DuPont system of analysis Use the following ratio information for Johnson International and the industry averages for Johnson's

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Answer:

a) DuPont analysis for Johnson International

2013: 0.059 x 2.11 x 1.75 = 0.2179 = 21.79%

2014: 0.058 x 2.18 x 1.75 = 0.2213 = 22.13%

2015: 0.049 x 2.34 x 1.85 = 0.2121 = 21.21%

b) DuPont analysis for industry averages

2013: 0.054 x 2.05 x 1.67 = 0.2121 = 21.21%

2014: 0.047 x 2.13 x 1.69 = 0.1692 = 16.92%

2015: 0.041 x 2.15 x 1.64 = 0.1446 = 14.46%

c) Johnson International's drivers follow the same tendency as the industry's average, e.g. net profit margin decreased in a similar manner, and total asset turnover increased also in a similar manner to the industry's average. The only driver that doesn't follow the industry's trend is financial leverage. While other companies in the same industry decreased their financial leverage, Johnson increased it. You should further analyze why this happened and what are the potential consequences.

Explanation:

The DuPont analysis is used to break down ROE into 3 different components and that way you can analyze whether a company's high ROE comes along with a high risk. The following formula is used to calculate ROE based on 3 different factors:

R OE = net pro fit margin x total assets turnover x financial leverage

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3 years ago

Suppose you want to establish a business .describe how you would use any five entrepreneur qualities to make sure that your busi

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First, is that I will never forget about my passion for the line of work that I am in. Passion means pursuing your dream despite setbacks.

Second, is that I will make sure that I will be open to new ideas and perspectives. I have to keep my mind open, especially to change. There are many things that I do not know, and if I want to be successful, I will not pretend that I know everything. Being open-minded will help my business thrive.

Third, I will always strive to learn about my line of work. This coincides with my second quality.

Fourth, I will make sure that I am always two steps ahead of my game. While having direction is great, it is best to keep my feet up and know what to expect. This will ensure that I will encounter as little problem as possible.

Lastly, I will never stop innovating. Innovating does not just mean that I should have great ideas; innovating means making my great ideas even greater! By learning how to do so, it will make sure that my business will not get left behind.

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2 years ago

Mayan Company had net income of $34,000. The weighted-average common shares outstanding were 8,500. The company has no preferred

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Answer:

The company's earnings per share is $ 4.

Explanation:

EPS earning per share is an indicator widely used by investor of stock market in order to determine market value of their investment. EPS is directlty proportional to stock price.

EPS is calculated by dividing net income with outstanding common shares.

EPS = Net income/ outstanding common shares

EPS = 34,000/8,500 = $ 4

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3 years ago

In determining the dollar amount to use for operating assets in the return on investment (ROI) calculation, companies will gener

Irina-Kira [14]

Answer:

Option A is correct

Explanation:

Companies often use net book value or gross cost of the asset because<u> It is consistent with how assets are reported on the balance sheet</u>

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3 years ago