Answer:
c. The real interest rate is 1 percent and the expected inflation rate is minus 2 percent
Explanation:
Nominal interest rate = real interest rate + expected inflation rate.
For the third option, the nominal interest rate: 1% + (-2%) = -1%
For the first option, the nominal interest rate: 2% + 1% = 3%
For the second option, the nominal interest rate: 0 + 2% = 2%
For the fourth option, the nominal interest rate: -2% + 3% = 1%
I hope my answer helps you
Yes i do pay attention to the price on the stocks on the stock market, it benefits me to do so because it helps me keep track of my purchase:)
Answer:
The list is follows:
a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption
b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle
c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle
d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption
Answer:
Book value par common share will be $19.6
Explanation:
We have given number of preferred stock = 1000
Value of preferred stock = $10 par preferred stock
So preferred Stock = 1000 x $10 = $10000
Total Stockholder's equity = $500000
Thus Common stock value = $500000 - $10000 = $490000
Total number of common stock = 25000 shares
So the book value per common share is = 