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3 years ago

Consequmcws of inflation on the goverment?

Business

1 answer:

Bogdan [553]3 years ago

3 0

Answer:

Bad things will happen to you.

Explanation:

Raising prices can cuase market crashes and possibly strikes so raising prices on cheap items that have been that way for a while arent good especially when something bad is oging to happen, you should get a 2nd opinion this is just mine.

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Investing in, controlling, and managing value-added activities in another country is called:

kozerog [31]

Foreign direct investment

8 0

4 years ago

The next three annual dividends paid by XYZ stock are expected to be $2.79 in one year, $7.43 in two years, and $3.05 in three y

Vikentia [17]

Answer:

a. $49.83 (+ or - $0.05).

Explanation:

Given that :

Dividend of the first three years and the terminal value at the end of the year 2, that is the price at the end of year 2.

We know that the price of the share is the preset value of all the future dividends.

So we have to present price at the year 2 which is at present value for the end of the year 2 of the dividends beyond year 2.

To calculate the price of the stocks at present, we :

1. The present value for the price of the year 2 that is pv at the end of the year 2 of the dividend to be received beyond the year 2.

2. The present value of the dividend of the year 1 as well as year 2.

3. Then we add the steps 1 and 2 to get the present value of all the dividends.

Therefore,

The present value of the price at nth year with r rate of return is given by :

$\frac{\text{price at nth year }}{(1+r)^n}$

Hence, the present value of the price at the year 2 with 15.20% rate of return is = $\frac{54.78}{(1+0.1520)^2}$

$=\frac{54.78}{1.327104}$

= $ 41.28

Now present value of dividend of the first 2 years :

Dividend received at the end of the nth year with rate of return r is

= $\frac{\text{dividend}}{(1+r)^r}$

Therefore the present value of the dividend of the first two years is

= $\frac{2.79}{(1+0.1520)^1}+\frac{7.43}{(1+0.1520)^2}$

= 2.10 + 6.45

= $ 8.55

Now , $ 41.45 + $ 8.55

= $ 49.83

Thus, the current price of one share of the XYZ stock is $ 49.83

4 0

3 years ago

Whether two goods are substitutes or complements can be determined by computing the.

d1i1m1o1n [39]

Answer: cross price elasticity of demand

Explanation:

The cross price elasticity of demand measures the changes in quantity demanded of one good when the price of another good changes.

Substitute goods are goods that can be used instead of another good e.g. coke and pepsi. The cross price elasticity for substitutes is usually positive because an increase in price of one good increases the quantity demanded of the other good.

Complementary goods are goods that have to be consumed or used together. E.g. car and gas. The cross price elasticity for complementary goods are usually negative because an incease in price of one good leads to fall in the quantity demanded of the other good.

I hope my answer helps you

5 0

4 years ago

Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit

Masja [62]

Answer:

Explanation:

For A:

SP = 180

Variable expenses:

DM 24

Other Variable expenses 102

Total Variable expenses = 102+24 = 126

Contribution margin = SP - Variable expenses = 180-126 = 54

Contribution margin per pound = 54/#pounds = 54/3 = $18/pound

*pounds = DM/material costs = 24/8 = 3 pounds

For B:

SP = 270

Variable expenses:

DM 80

Other Variable expenses 90

Total Variable expenses = 80+90= 170

Contribution margin = SP - Variable expenses = 270-170= 100

Contribution margin per pound = 54/#pounds = 100/10 = $8/pound

*pounds = DM/material costs = 80/8 = 10pounds

For C:

SP = 240

Variable expenses:

DM 32

Other Variable expenses 148

Total Variable expenses = 148+32= 180

Contribution margin = SP - Variable expenses = 240-180= 60

Contribution margin per pound = 54/#pounds = 60/4= $15/pound

*pounds = DM/material costs = 32/8 = 4pounds

Maximum contribution margin that can be earned is by selling product A

6000*$18 = $108000

Product A = 500 units*3*18 = 27000

pounds left (6000-(500*3))=4500

Product C (500*4*15) = 30000

pounds left (4500-(500*4))=2500

Product B (250 units*10*10) = 25000

Maximum contribution margin:

Product A 27000

Product B 30000

Product C 25000

Total 82000

Product A and Product B demand is completely utilised by

own stock

For Product C more pounds are needed. That is why maximum

price that can be paid is $10 for additional raw material, which is the contribution margin of product C.

8 0

3 years ago

What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?.

Nutka1998 [239]

What happens to a monopolistically competitive firm that begins to charge an excessive price for its product? The firm will go out of business.

4 0

2 years ago

Consequmcws of inflation on the goverment? ​

Consequmcws of inflation on the goverment?