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earnstyle [38]
3 years ago
11

Treasury bills are currently paying 4.7 percent and the inflation rate is 2.2 percent. a. What is the approximate real rate of i

nterest? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the exact real rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Marizza181 [45]3 years ago
8 0

Answer:

a.

2.5%

b.

2.45%

Explanation:

The approximate real rate of return can be derived from nominal rate of return formula given below:

nominal rate of return=real rate of return+inflation rate

real rate of return=nominal rate of return-inflation rate

real rate of return= 4.7%-2.2%=2.5%

The exact real rate of return can be derived from exact real rate of return formula given below

real rate of return=(1+nominal rate of return)/(1+inflation rate)-1

real rate of return=(1+4.7%)/(1+2.2%)-1

real rate of return=1.02446184 -1=2.45%

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Red Co. acquired 100% of Green, Inc. on January 1, 2012. On that date, Green had inventory with a book value of $42,000 and a fa
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Answer:

D) $15,000.

Explanation:

190,000 excess of value Building  amortized over 10 years:   19,000

 70,000 lesser value on Equipment amortized over 5 years: 14,000

We will amortize the building at a rate of 19,000 dollar per year

and we will amortize the equipment at 14,000 per year

the inventory as still is in the company's possesion will also need to be adjsuted

10,000 + 19,000 - 14,000 = 15,000

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3 years ago
Within the relevant range, variable costs can be expected to: Multiple Choice remain constant in total as the activity level cha
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Vary in total in direct proportion to changes in the activity level. As this cost increase or decrease, the output level.

<h3>What is the variable cost dependency?</h3>

Variable costs are proportional to output, resulting in a fixed sum per unit produced. It indicates that when more products are manufactured, variable costs will rise; conversely, if fewer products are manufactured, variable costs will fall.

Thus, option C is correct.

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2 years ago
A​ well-established automobile dealership just hired you as an intern in the back office. Since you​ started, you have disco
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Answer: marketing plan

   

Explanation: In simple words, marketing plan refers to the plan that outlines the set of activities that an organisation has to perform for the next year in respect to its  advertising and marketing efforts. A market plan is seen as a sub part of a business plan.

It helps an organisation to effectively perform its marketing activities as it outlines the sources , methods and timing of how it will be performed. Thus, in the genitive case, company should make a marketing plan by which they can aware their customers and can increase their market share.      

8 0
3 years ago
g On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produ
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Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Total Years = 5, semiannually = 5 × 2 = 10

Rate = 7% yearly, semiannually rate = 7 ÷ 2 = 3.5%  

Journal Entries

On Jan 1

Cash A/c           Dr. $9,594,415

Discount on bonds payable A/c        Dr. $405,585

      To Bonds payable A/c          $10,000,000

(Being the issuance of bond payable is recorded)

Discount value of issued bonds = $10,000,000 - $9,594,415 = $405,585

2).

On Jun

Interest expenses A/c             Dr. $390,559

Discount on bonds payable A/c($405,585 ÷10)           Dr.40,559

 To Cash A/c($10,000,0000 × 3.5%)     $350,000

(Being the payment of first semiannual interest is recorded)

3).  

On Dec 31

Interest expenses A/c              Dr. $390,559

Discount on bonds payable A/c($405,585*10/100)     Dr.$40,559

 To Cash A/c($10,000,000*3.5/100)      $350,000

(Being the payment of second semiannual interest is recorded)

b). Bond Interest Expense Amount for First Year

= Interest Expenses + Amortized Discount

= $700,000 + $81,117

= $781,117

Interest expenses = $350,000 + $350,000 = $700,000

Amortized Discount = $40,559 + $40,559 = $81,117

c).The Company issued the bonds at $9,594,415 for the face amount of $10,000,000 because bonds issued at discount for $405,585 as the coupon rate is less than the market interest.  

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