Answer:
The sacrifice ratio could be as small as 0
Explanation:
The Sacrifice Rate is the loss of output due to the fight against inflation, and can be expressed as how much product is lost to reduce inflation by 1 percentage point. The Sacrifice Rate is a proposition by economist Robert Lucas Jr, who noted that the slowdown in long-term inflation is associated with a reduction in the production of goods and services over a period of time until economic agents adapt to the new reality. pricing and restructuring their expectations of the economy. Therefore, the social cost of fighting inflation is a reduction in GDP and an increase in the unemployment rate.
Because of this, we can conclude that if policymakers are committed to reducing inflation and rational people understand this commitment and quickly reduce their inflation expectations, the sacrifice rate can be as low as 0.
Answer:
$27,000 per year
Explanation:
The opportunity cost of an investment is the profit or cash flows that the investor must surrender in order to carry out the investment.
In this case, Jarrett is considering investing $300,000 in a land purchase which he will lease for $36,000 per year.
If he decides to make that investment, he will be losing alternative investments that can yield a 9% return. That 9% return that Jarrett is losing by going ahead and purchasing the land, is Jarrett's opportunity cost = $300,000 x 9% = $27,000 per year.
Answer:
What factors other than earnings per share should be considered in evaluating alternative financing plans?
-
b.Dividends reduce retained earnings.
Explanation:
Only option B is true, since retained earnings = previous balance + net income - dividends.
- Option A is wrong because preferred stocks collect annual interests or preferred dividends.
- Option C is wrong because common stockholders exercise control over the board of directors.
- Option D is wrong because it is not necessary to pay dividends to common stockholders.
- Option E is wrong because dividend expense reduces retained earnings, not net income.
Answer:
Finance lease
Explanation:
Finance lease -
The lease where the finance company is the legal owner of the asset during the time period of the lease , where as , the lessee has a operating control on the assets and also , have share for any economic risks .
Hence ,
From the question , since , Alyssa need to have a large tent , but due to lack of money , she took the tent on lease from the Ajax supplies .
Hence , the correct term for the given statement is Finance lease .
Common stock is a corporate owned equity. Common stock shareholders have a right to the company's assets after all bondholders, preferred stock/shareholders and other debt holders are paid first and in full. Preferred stock has the owner entity to a fixed amount of money. Those that are preferred shareholders/stockholders receive money before any common stock holders do. They have a higher claim on assets and company earnings.