Based on the inflation rate and the fact that it is rising, the right recommendation would be to A. raise the reserve ratio.
<h3 /><h3>How can you decrease inflation?</h3>
Inflation can be reduced when the reserve ratio is raised because it will reduce the amount of money that banks have to loan out.
This means that there will be less money in the economy which will reduce inflation because less money means less demand for goods and services.
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Answer:
The forward is discount, which is -1.8%
Explanation:
The forward rate is the rate of interest that is applicable or applied to the financial transaction, which will happen in the near future.
The percent is computed as:
= (Spot rate / Forward rate) - 1
where
Spot rate is $1.60
Forward rate is $1.63
Putting the values above:
= ($1.60 / $1.63) - 1
= $0.9815 - 1
= -1.8 %
which is forward discount.
Answer:
The Current share price is $94.79
Explanation:
Dividend Growth Model determines the share price of a company which offers perpetual dividend with stable growth. It is the expected dividend of a share divided by the net return rate of growth rate
.
According to given data
Last dividend = D0 = $3.40
Rate of return = 15%
Growth rates:
For 3 years = 29% per year
After 3 years = 7.3% in perpetuity
Dividend after 3 years = D3 = 3.40 x ( 1 + 0.29 )^3 = $7.30
We can calculate the price of share using following formula:
Price of share = D3 / Rate of return - Growth rate
Price of share = $7.30 / 15% - 7.3% = $7.30 / 7.70% = $94.79
Answer:
= $490
Explanation:
<em>Under the </em><em>First-in-First-Out </em>( FIFO ) <em>method of inventory valuation, inventories are valued using the price of the earliest batch in stock until the batch is exhausted when the price of the next oldest batch is used and so on.</em>
Date sale units Workings Value
10 10 × $19 190
20 (10 × $19)+( 10 × $20) 390
The cost o he merchandise = $190 + $390
= $490
Answer:
I would say D because it sounds more reasonable for me
