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notka56 [123]
3 years ago
11

True or False: Theoretically, a country in which price inflation is very high should expect to see its currency depreciate again

st that of countries in which inflation rates are lower.
Business
1 answer:
sveticcg [70]3 years ago
6 0

Answer: <u>The correct answer is TRUE.</u>

Explanation:  

Inflation: sustained and widespread increase in the price level. This means that inflation reflects the loss of the purchasing power of the currency. Therefore the currency is devalued against that of the countries in which the inflation rate is lower or zero.

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Suppose you know that a company’s stock currently sells for $56 per share and the required return on the stock is 10 percent. Yo
Elenna [48]

Answer:

$2.8 divdends per share

Explanation:

$56 market price

Rate of return 10%

The gain for an investment in stocks is:

\frac{DividendsYield+SharePriceVariation}{Investment} = $Return on Investemnt

In this case we are told that this is distribute evenly, this means:

dividends paid = market price gain

So dividends yield 5% and market price yields another 5% to achieve the 10%

So currently $56 market price x 0.05% = $2.8 divdends per share

5 0
3 years ago
You have been hired as a consultant by Feludi Inc.'s CFO, who wants you to help her estimate the cost of capital. You have been
Lisa [10]

Answer:

CAPM=5.6\%

Explanation:

as it is said we must apply the CAPM model, so we have:

CAPM=r_{f}+\beta (E\(r_{m})-r_{f} )

where CAPM is the capital asset pricing model, r_{f} is the risk free of the market, \beta is the relation between the market benchmark and an asset return, and E(r_{m}) is the  expected return of an asset

CAPM=0.041+1.3(0.0525-0.041)

CAPM=5.6\%

8 0
3 years ago
Suppose disposable income increases by $ 2,000. As a result, consumption increases by $ 1,500. 1. The increase in savings result
NeTakaya

Answer:

1. The increase in savings resulting directly from this change in income is $500

That is

Increase in savings = Increase in income minus increase in consumption

= 2000 - 1500

= $ 500

2.The marginal propensity to save (MPS) is calculated by dividing the change in savings by the change in income.

That is

ΔS/ ΔY,

Therefore given

Change in savings =ΔS =$500

Change in income =ΔY = $2000

MPS = 500/2000

MPS = 0.25

3.The marginal propensity to consume (MPC) is calculated by dividing change in consumption by changes in come.

That is ΔC / ΔY

Where ΔC = 1500

ΔY = 2000

Therefore MPC = 1500/2000

= 0.75

1. The increase in savings resulting directly from this change in income is $

8 0
3 years ago
Darnell has saved $30 per week to buy a new Blu-ray player. He compares two different models: a Panaview that is priced at $130
STALIN [3.7K]

Answer:

unit of account

store of value

medium of exchange

Explanation:

Money is anything that is generally accepted as a means of payment for goods and services and for repayment of debt.

Functions of money  

1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $140 for the Blu-Ray player.

2. Unit of account : money can be used to value goods and services, For example, you can determine that the value of the Panaview model  is lower than the Zony Model based on its price

3. Store of value : money can retain its value over the long term, this it can be used as a store of value.

4 0
3 years ago
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 260 $ 280 Accounts payable $ 1,510 $ 1,7
Lemur [1.5K]

Answer:

$74,16

Explanation:

Note : I have attached the full question as images below !

Price Earning ratio = Price per share ÷ Earnings per share

                               = $24

Where,

Earnings per share = Earnings attributable to Common Stock holders ÷ Weighted Average Number of Common Stock Outstanding

therefore,

Earnings per share = $1,640 ÷ 530 = $3.09

so,

Market Price per share = Price Earning ratio x Earnings per share

Market Price per share = $24 x $3.09

                                       = $74,16

3 0
3 years ago
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