Answer:
C. Variable inflation is associated with high transaction costs
Explanation:
Because of uncertainty about future inflation, it may not uncertain relative to its price change. Therefore, option A is not correct.
In order to maximize financial position, inflation harms borrowers and helps lenders, so option B is also incorrect.
Option C is correct because variable inflation is associated with high transaction costs in order to maximize the financial position. For example, if the inflation rate is 5% during first quarter, the price level is not much to disrupt the financial position. Again, in the next quarter, if the inflation rate changes to 4%, the position will be effective more. However, if it increases, it will not affect too much.
Answer:
$9.63
Explanation:
Data provided in the question:
Year Annual dividend paid
1 $1.20
2 $1.12
3 $1.12
4 $14.20
Now,
Year Annual dividend paid Present value factor Present value
1 $1.20 0.84246 1.011
2 $1.12 0.84246 0.7949
3 $1.12 0.59793 0.6696
4 $14.20 0.50373 7.1529
===============================================================
Worth of stock = 1.011 + 0.7949 + 0.6696 + 7.1529
= $9.6284 ≈ $9.63
Note:
Present value factor = [ 1 ÷ (1 + 0.187)ⁿ]
here,
n is the year
It would be B.) E-commerce this term is used to describe buying and selling products online.
Answer:
B. The amount of equity reported by Frankfort Corporation is $672,000
Explanation:
Equity earnings
= Frankfort's share in net income of Bradley
= 1,680,000 * 40%
= 672,000
Option B
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