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choli [55]
3 years ago
15

In countries where inflation is expected to be high, interest rates also will be high, because investors want compensation for t

he decline in the value of their money. This relationship is referred to as the___________.
Business
1 answer:
Degger [83]3 years ago
5 0

Answer:

Fisher effect

Explanation:

Fisher effect is the effect in the economic theory that is established by the economist Irving Fisher, which states the relationship among the inflation and both nominal and the real interest rates.

This effect state that the real rate of interest equals to the nominal rate of interest deduct the expected inflation rate.

So, the relationship which is mentioned in the question is the fisher effect as it state the rate of interest that reflect the expectations likely the future inflation rates.

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Project governance does NOT cover a. Allowing project managers to plan the project the way they see fit b. Overseeing project ma
pashok25 [27]

Answer:

a

Explanation:

Project Managers plan their projects with elements of the projects governance as guidelines.

6 0
4 years ago
Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction fo
Soloha48 [4]

Answer:

the numbers are missing, so I looked for a similar question:

  1. Investment in the business $17,010
  2. Borrow cash $7,620
  3. Purchase equipment $8,300
  4. Revenues earned $298,600
  5. Expenses incurred $210,900
  6. Dividends $15,000

since there is not enough room here, I used an excel spreadsheet. I assumed all sales were on cash and all expenses were also paid using cash.

Download pdf
8 0
4 years ago
A firm has $5 million in retained earnings. The market price of the firm's common stock is $55. The firm recently paid a dividen
tresset_1 [31]

Answer:

Cost of external equity financing 16.64%

Explanation:

Cost of external equity financing=Div*(1+g)/P (1-F) + g

F = the percentage flotation cost=4%

Div=Dividend in the current period=$3.7

g=growth=9%

P=Market price of the stock= $55

Cost of external equity financing=3.7*(1+0.09)/(55*(1-0.04))+0.09=0.166383=16.64%

5 0
3 years ago
Read 2 more answers
Assume that you are the owner of Campus Connection, which specializes in items that interest students. At the end of January of
Nookie1986 [14]

Answer:

The amount of net income for January was $24,100

Explanation:

Revenues from sales $115,100 (for this analysis is not important if the sales were in cash or on credit)

-

Cost of goods sold $48,000

------------------------------------

Gross profit $67,100

-

Salaries, rent, supplies, advertising, other expenses and monthly utilities (it is not important for this analysis if all the exenses were paid) -$43,000

-----------------------------------

Net income $24,100

3 0
4 years ago
A company engineer has an idea that by implementing an IoE solution the company will save time in getting a product to market. T
frozen [14]

Answer:

Software system modeling is a technique to deal with the complexity inherent in these systems. The use of models helps the software engineer to "visualize" the system to be built. In addition, models of a higher level of abstraction can be used for communication with the customer. Finally, the modeling tools and those of Automated Software Engineering. They can help verify the correctness of the model.

3 0
4 years ago
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