Answer:
The correct answer is A and B
Explanation:
PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.
It is grounded on The Law of One Price, which states all the identical goods have the same price.
As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.
Answer:
C. not change, and the price received by sellers will not change.
Explanation:
Because previously there was a tax of the same ammoutn nothing will change. The sellers will will transfer the tax into the price therefore, the after-tax proceeds will not change netiher the selling price. The same effect of the consumer tax will occur again, some or the entire tax will be pay for the seller or the consumer based on the elasticity of the supply and demand curve.
The effect of chaging the law will not alter the economic reality of translate taxes into consumers
Answer:
The Treynor index for the stock will be 0.02.
Explanation:
The average return of the stock is 10%.
The average risk-free rate is 7%.
The standard deviation of the stock's return is 4%.
Stock's beta is given at 1.5.
Treynor index
= (Portfolio return- risk free return)/beta of the portfolio
=(0.10-0.07)/1.5
=0.03/1.5
=0.02
So, the Treynor index for the stock will be 0.02.
Answer:
b. can be tailored to the needs of the internal user.
Explanation:
Managerial accounting information is basically for internal users, and is not aimed to provide information to external users. It aims of future projections.
It need not follow the US GAAP process, as there is no statutory requirement.
Shareholders are considered external for this purpose, as internal ones are, management, employees, labor etc:
Therefore, it does not help shareholders.
It does not report any kind of business results, it only aims to regulate transactions and accordingly planning future goals.
Therefore, correct option is
b. can be tailored to the needs of the internal user.
Phyllis' RATE (percentage) of return is 7 percent
<u>Explanation:</u>
Data provided in the question:
Purchase price for each share = $50
Dividend received = $1 per share
worth of shares at the end of year = $52.50
Thus, total return on the share = dividend received plus worth of sahres at the end of year minus purchase price
= $1 plus $52.50 minus $50 = $3.5
Therfore, rate of return = [ total return on the shares by purchase price ] into 100%
= [$3.5 by $50] inot 100 percent
= 7 percent
hence, the option with 7 percent will be the correct answer.
