If it was me, I would have to go with B
Answer: 6.23%
Explanation:
The expected return is a weighted average of the expected returns given the different economic conditions.
Probability of recession economy = 1 - 55% - 20 % = 25%
Expected return ;
= (14.8% * 25%) + (6.3% * 55%) + (-4.7% * 20%)
= 0.037 + 0.03465 -0.0094
= 0.06225
= 6.23%
Answer:
The paid-in-capital will increase by $45,000
Explanation:
Shares issued and Outstanding = 60,000
Par Value = $5
Market Value = $15
Since, the 15% stock dividend is issued and the paid-in-capital will increase only by par value and the difference between market value and par value recorded in premium. The calculation will be:
⇒ 60,000 * 15% * 5
⇒ $45,000
The paid-in-capital will increase by $45,000.
Teresa currently earns a <u>real</u> wage of $12.00 per hour; in other words, the amount of her paycheck each week is $12.00 per hour times the number of hours she works. Suppose the price of apple juice is $2.40 per gallon; in this case, Teresa's<u> real</u> wage, in terms of the amount of apple juice per she can buy with her paycheck <u>4 </u> gallons of apple juice per hour.
When workers and firms negotiate compensation packages, they have expectations about the price level (and changes in the price level) and agree on a <u>nominal </u>wage with those expectations in mind. If the price level turns out to be higher than expected, a worker's wage is<u> lower </u>than both the worker and employer expected when they agreed to the wage.
Teresa and her employer both expected inflation to be 3% between 2012 and 2013, so they agreed, in a two-year contract, that she would earn $12.00 per hour in 2012 and $12.36 per hour in 2013. However, suppose inflation between 2012 and 2013 actually turned out to be 6%, not 3%. For example, suppose the price of apple juice rose from $2.40 per gallon to $2.54 per gallon. This means that between 2012 and 2013, Teresa's nominal wage <u>decreases</u> by<u> 3</u>% and her real wage <u>decreases</u> by approximately.
<u>Explanation:</u>
A nominal pay is the pace of pay workers are compensated. In case you're paid $15.00 every hour, your ostensible compensation is $15.00 every hour.
The most significant thing to think about an ostensible compensation is that it isn't balanced for swelling. Swelling is an expansion in the general value level in an economy.
Answer: One thing that could be done to devalue a currency is to issue more currency into their markets.
Explanation:
Any asset or goods can be based on how scarce the product or assets it. The authorities in the foreign markets could make more currency and this will devalue the currency because the market will be saturated. The money/currency will still be at the same value as before but the purchasing power will be reduced since there is an added supply of money in the economy.