Answer: False. The General price level will only increase. It will not decrease at any cost of having cost pull inflation and the demand full inflation.
Explanation:
For every production of the single unit, the expenses incurred on the wages and the cost incurred on using raw materials are prominently considered. The rate of demand has an inverse relationship with the increase in the cost of production. Then the price level of the products increases with the effects of Cost-push inflation.
Secondly, The rate of the demand for particular products increases beyond the equilibrium level when the output rate remains below the capacity to meet the requirements of the consumers' demand. In one particular stage, Demand-full inflation takes place which utmost leads to an increase in the price level and acts as a cause for Demand-full inflation.
Answer:
49 days
Explanation:
Account receivable turnover ratio = Net credit sales / Accounts receivable
Account receivable turnover ratio = $602,000 / $79,922
Account receivable turnover ratio = 7.53
Average collection period = 365/7.53
Average collection period = 48.47277556440903
Average collection period = 49
Thus, firm’s sales uncollected for year is 49 days.
Answer:
The multiple choices are as follows:
18.6%
14.0%
22.8%
25.0%
The second option is the correct answer,14%
Explanation:
The capital asset pricing asset model formula for computing a firm's cost of equity according to Miller and Modgiliani is given below:
Ke=Rf+Beta*(Mr-Rf)
Rf is the risk free of 2% which is the return expected from zero risk investment such as government treasury bills.
Beta is how risky an investment in a company is compared to similar businesses operating in similar business sector of the company given as 2.0
Mr is the expected return on market portfolio which 8%
Ke=2%+2*(8%-2%)
Ke=2%+2*(6%)
Ke=2%+12%=14%
Answer:
Answer is explained in the explanation section below.
Explanation:
Data Given:
LSL = 4.96 cm
USL = 5.04 cm
Mean = 5 cm
SD = 0.01 cm
1. Capability Index:
Cpk = min ( 
, 
)
So, now, we need to find the following:
= 
= 
= 1.33
Similarly,
= 
=
= 1.33
So,
Cpk = min ( , ) = 1.33
2. Maximum Standard deviation allowed.
Let SD be maximum standard deviation allowed.
So,
Mean - 3SD = 4.96 Equation 1
Mean + 3SD = 5.04 Equation 2
Subtracting Equation 2 from 1, we have
6SD = 5.04 - 4.96
6SD = 0.08
SD = 0.0133
Answer:
the current bond price is $1,147.20
Explanation:
The computation of the current bond price is shown below:
Given that
NPER = 10
RATE = 6%
PMT = $1,000 × 8% = $80
FV = $1,000
Here we assume the future value be $1,000
The formula is shown below:
= -PV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the current bond price is $1,147.20
