Answer:
A
Explanation:
the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = interest rate
g = growth rate
Interest rate used is usually nominal, thus, it increases with inflation rate
We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines
Example
d1 = 5
r = 10%
g = 5%
5/ (0.1 - 0,05) = 100
when interest rate increases to 20% as a result of inflation, value becomes
5 / 0.2 - 0.05 = 33.33
value decreased with increase in inflation
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i think the answer is B which is <span>Timber land was harvested, robbing Native Americans of a valuable resource</span>
Answer: B. People who have been in an industry are most likely to be asked to be regulators of the industry.
Explanation:
The Capture Theory or Regulatory Capture refers to a situation where the agencies that are supposed to be regulating an industry come under the influence of the companies they are meant to be regulating.
This leads to a situation where the Agencies make regulations that favour these companies instead of the consumer.
One key way this occurs is the REVOLVING DOOR. This is known as the tendency of professionals to move between Government and Private jobs. Simply put, a professional could work in an industry and then go on to work in an Agency regulating that industry. Once this happens, the once private citizens could start influencing the Agencies in favour of their previous bosses.
Answer:
The answer is continuous budgeting.
Explanation:
This(continuous budgeting) is a method of preparing budgets for future periods(example periods can be monthly, quarterly etc.) revisiting them during current periods, and making adjustments at the end of the period. It is also known as rolling budget.
The advantages are:
1. It helps in reducing the uncertainty of budgeting.
2. It helps the management to know where the company is moving in terms of sales and profitability.
Disadvantage:
1. It is time consuming.
