Answer:
The answer is Fisher effect
Explanation:
The Fisher Effect is an economic theory depicts the relationship between inflation and interest rates. Real interest rates decreases as inflation increases
The Fisher Effect's formula is:
Real interest rate = the nominal interest rate - the expected inflation rate.
Therefore, Fisher effect occurs in countries here inflation is expected to be high, interest rates also will be high, because investors want compensation for the decline in the value of their money
Answer:
Tyrone will need $4578.4 to meet his $15,000 goal
Explanation:
Tyrone wants to spend amount on a new car three years from now=$15,000
Formula : 
Where A=future value
P=present value
r=rate of interest
n=time period.
Future value of deposits=
Future value of deposits=
10421.60
So, additional money needed=15000-10421.60=4578.4
Hence Tyrone will need $4578.4 to meet his $15,000 goal
Answer:
-
Rivalry between competitors
- Bargaining power of suppliers
- Bargaining power of customers
- Threat of new competitors
Explanation:
The factors chosen to identify whether or not a sector presents a good business opportunity for a company, were the strengths of Porter, who analyzes the micro and macro environment to determine whether a company can be competitive in the market.
The rivalry between competitors is an essential factor to measure the degree of opportunity for a business to be successful, as this factor will determine different variables among competitors of similar products in the market, such as the strength of the brand, the demand for your product, etc. in order to measure how this factor will directly impact your business.
The bargaining power of suppliers implies the bargaining power of the supplier with the company, being able to provide favorable or unfavorable conditions to a business, such as price, delivery time, quality, etc.
The bargaining power of buyers means measuring and monitoring how your product will have a positive or negative weight on the customer and which affects the volume of purchases, the possibility of the customer negotiating with the company, etc.
And the threat of new competitors concerns new competitors that can enter the market and directly impact their business, for this the barriers to entry such as legislation, high entry capital, etc. should be analyzed.
Answer:
4.82 percent
Explanation:
We use the Rate formula in this question that is shown in the attachment
The NPER is the period of time.
Provided that,
Present value = $1,000 × 101% = $1,010
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 7.5% ÷ 2 = $37.5
NPER = 30 years - 6 years = 24 year × 2 = 48 years
The formula is presented below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 7.41%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.41% × ( 1 - 0.35)
= 4.82%
Using multiple cost drivers on a flexible budget report will generally make the budget accurate and effective.
<h3>What is flexible budget performance report?</h3>
A flexible budget performance report serves as one that make comparison between actual revenues and costs for a period.
There are some method used in estimating this report, but multiple cost drivers is an effective method to get an accurate report.
Learn more about flexible budget performance report at:
brainly.com/question/27201970
