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3 years ago

In your company's management development program, there was a heated discussion between

Business

1 answer:

GREYUIT [131]3 years ago

3 0

Answer:

The most sensible position is to understand that theory, while not practical in itself, can be immensely helpful when dealing with pratical matters.

This is because theory gives you a sound conceptual foundation that can be used to analyze the practical context, and approach it with the best possible practical solutions.

Without theory, managers have to rely too much on intuition, which can often fail.

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Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be low

Alla [95]

Answer:

1) False

when the inflation is lower than expected, the real interest rate will be higher, since

real interest rate = Nominal interest rate - inflation.

2) Gains

In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.

3) Loses

In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.

6 0

3 years ago

Read 2 more answers

A bond is a(n):Group of answer choices a) legal promise to repay a debt. b) agreement issued by a financial intermediary linking

aliya0001 [1]

Answer:

a) legal promise to repay a debt.

Explanation:

A bond is an agreement that is made between the issuer or the bank or the financial institution and the borrower.

The agreement was made in written specify the terms and conditions which involve the borrowed amount, interest rate, and the time period in which the borrower promises to pay back the money to the financial institution.

3 0

3 years ago

Suppose the exchange rate between u.s. dollars and swiss francs is sf 1.41 = $1.00, and the exchange rate between the u.s. dolla

Alexxandr [17]

We are asked to solve for the cross rate of swiss francs to euros and we are given with the following values:
swiss francs to dollar ----> 1.41 = $1.00
Euro to dollar ------> 0.64 = $1.00

Solving for swiss francs to euro is shown below:
swiss francs / euro = 1.41 / 0.64
swiss francs = 2.2 euro
1 swiss francs = 2.2 euro

3 0

3 years ago

A firm'sprofit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million. How mu

nordsb [41]

Answer:

The firm paid taxes of $0.5 million

Explanation:

Profit margin is the percentage of net income to its sales. It is calculated as follow:

Profit Margin = ( Net profit / Sales ) x 100

20% = (Net profit / 5 million) x 100

(20/100) x 5 million = Net profit

Net profit = 1 million

EBIT is the earning before the payment of interest expense and tax. It is the net of Gross profit and operating expenses.

net income is calculates from EBIT as follow

Net Income = EBIT - Interest expense - Tax

1 = 1.5 - $0 - Tax (ignoring the effect of financing)

Tax = $1.5 - $1

Tax = $0.5 million

5 0

3 years ago

A door-to-door salesperson knocks on Mary's door and convinces her to purchase the Wonder Vacuum for $500. Soon after the salesp

Vlad1618 [11]

Answer:

Mary can cancel the transaction at any time before midnight of the third business day thereafter.

Explanation:

If she is having second thoughts about the deal , then Mary can cancel the transaction at any time before midnight of the third business day thereafter this is due to the fact that Mary may exercise the right to rescind or cancel the transaction until midnight on the third day after the transaction. She can cancel the deal at no cost to herself within 3 days of closing.

8 0

3 years ago