The value of money grows fast during hyperinflation.
Hyperinflation is defined by fast and unrestricted price rises in an economy, generally at rates greater than 50% per month over time. In times of war and economic turbulence in the underlying manufacturing sector, along with a central bank creating an excessive quantity of money, hyperinflation can arise.
As essential items such as food and gasoline become limited, hyperinflation can cause price increases.
While hyperinflations are uncommon, once they start, they may quickly spiral out of control.
Therefore, the correct option is rises rapidly.
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The factor that would shift demand is the reduction in the price of laptops.
The equilibrium price and quantity would decrease.
<h3>What is the result of the policy?</h3>
When the price of laptops are reduced, the quantity demand for laptops would increase while the demand for computers would fall. This is because computers and laptops are substitute goods.
As a result of a fall in the demand for computers, the demand curve would shift to the left. Equilibrium price and quantity would fall.
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Answer:
A) Isabel's after-tax cost for paying the bill in December = $19,000 - ($19,000 x 40%) = $19,000 - $7,600 = $11,400
B) Isabel's after-tax cost for paying the bill in January:
the cost before taxes = $19,000 - ($19,000 x 4%/12) = $19,000 - $63 = $18,937
after-tax cost = $18,937 - ($18,937 x 40%) = $18,937 - $7,575 = $11,362
C) January, since the cost of the debt is lower.
Answer:
Current Price of the Share Stock is $ 37.86 (D)
Explanation:
Using dividend valuation method with a constant growth rate assumption, share price is calculated as : Po =D1/(Ke-g).
Where; Po ⇒Market Value excluding any dividend currently payable
D1= Do(1+g)⇒Expected dividend in one year's time
Ke =Required rate of return by shareholders
g= Dividend growth rate
<u>Calculation</u>
D1 = 5(1+0.06)= $5.3
Hence, Po= 5.3/(0.20-0.06)
Po=$37.86
The share price is expected to reflect the future expected stream of income i.e dividends and capital gains ,discounted at an appropriate cost of capital.
Some of the assumptions of dividend valuation method include but not limited to the following:
- it assumed that investors act rationality and in the same way ;
-the dividend either show growth or no growth;
-the discount rate used exceeds the dividend growth rate.
According to Philip Crosby, the correct cost for a well-managed quality management programme should be less than 2.5 percent.
<h3>What is quality management programme ?</h3>
- A quality management programme that integrates all quality processes is easily capable of meeting FDA and ISO quality standards. This can be a boost to productivity because, with the right QMS software, it can almost manage itself.
- Companies with this level of efficiency can produce more, faster, and at a lower cost.
- Quality management encompasses all project management activities required to put a quality plan into action. The following are the fundamental components of an organization's approach to quality management: Quality system - the structures, procedures, and processes that are used to implement quality management.
- By incorporating a quality assurance programme into your customer relationship management system, you can monitor your employees' performance and ensure that they adhere to the standards you have established. It allows you to know if you've set the right benchmarks and how to change them.
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