If the inflation rate is 5%, your ending salary would actually have the same buying power of 71,250. So in actuality, you only got a raise of 21,250.
If you need raise per year, divide 21250/6 = 3541.67 per year
Answer:
None of the answers are correct . Financial managers should evaluate investors aversion to risk in order to make choices according to the investor profile.
Explanation:
Answer: A. No loss on the income statement Available-for-sale investments of $11,000 and an unrealized loss of $2,000 in stockholders' equity on the balance sheet.
Explanation:
Available-For-Sale (AFS) securities are not to have their gains or losses reflected in the income statement. They are to be reflected in the Other Comprehensive Income (OCI) section of the Stockholders Equity.
If there is a loss, the AFS security is written down by the loss amount which is then transferred to the OCI section of equity as an unrealized loss. It will reduce the OCI which would reduce the stockholders equity.
In this case therefore, AFS would go to $11,000 and OCI would record an unrealized loss of $2,000.
Answer: External recruitment
Explanation: In simple words, it refers to the method of employing individuals in the organisation from external sources rather than the existing staff. The source of external sources are mainly campus placements and online recruitment etc.
Such kind of recruitment brings fresh ideas and effective employees to the organisation. However it can result in low morale of existing employees of the firm.
In the given case, company is recruiting fresh graduates on the basis of their skills hence we can conclude that they are doing external recruitment.