Answer:
Improved decision making.
Explanation:
The question has itself the answer, the sixth one is supposed to be the blank of the question
Answer:
The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.
Explanation:
i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130
Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176
CPI in 2020 = ($130 / $130) * 100 = 100
CPI in 2021 = ($176 / $130) * 100 = 135.38
Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%
ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950
Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450
GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100
GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48
Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%
Answer:
The weights to be assigned to each component in WACC calculation is are,
Debt = 25.17%
Preferred stock = 4.69%
Common Stock = 70.14%
Explanation:
The WACC or weighted average cost of capital is the cost to a firm of its capital structure which can contain the following components- debt, preferred stock and equity. To calculate the WACC, we use the market values of debt and equity in our calculation to assign weights to each component of the capital structure.
Market value of common shares = 49 * 5.8 million = $284.2 million
The total value of capital structure is = 284.2 + 102 + 19 = $405.2 million
<u>The weights to be used in WACC calculation is:</u>
Debt = 102 / 405.2 = 0.2517 or 25.17%
Preferred stock = 19 / 405.2 = 0.0469 or 4.69%
Common Stock = 284.2 / 405.2 = 0.7014 or 70.14%
Answer:
The classification of the subject in question is mentioned throughout the paragraph below.
Explanation:
- Literacy seems to be a developmental requirement since knowledge and learning require the ability or skills to read and understand. Each body produces to speak and understand skills.
- Upcoming generation, as well as young ones, is incredibly knowledgeable, individuals who could get strong knowledge only need a graduate assistantship.
Answer:
Inventory= $5,325
Explanation:
Giving the following information:
Wattan Company reports beginning inventory of 25 units at $39 each. Every week for four weeks it purchases an additional 25 units at respective costs of $40, $41, $44, and $49 per unit for weeks 1 through 4.
Inventory= 25*39 + 25* 40 + 25*41 + 25*44 + 25*49= $5,325