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3 years ago

Which factor is the least affected by interest rate changes?

Business

1 answer:

ehidna [41]3 years ago

8 0

Answer:

Option C. GNP

Explanation:

The business cost and the price of the product is of-course get affected by the increase or decrease in the interest rate. So both of these options are the answer to the question.

The GNP measures the value of the products and services that is owned by the country's residents which also includes the production output in warehouse, individual product holdings, etc. for the year. So GNP is least affected by the interest rate changes.

Though the value of the major investments in the foreign country can not be affected easily. Other factors that also effect the earnings from the abroad are profitability, dividend policy, taxes, etc that affects the earnings from the foreign countries. However the small investments would definitely be affected by the investments made in the foreign stock exchange with the change in the interest rate in the home country. So this change in the interest rate would definitely affect the earnings coming from abroad as the investment in foreign countries has been lessened. So can have considerable affect on the earnings coming from abroad.

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Wiggle Pools has total equity of $358,200 and net income of $47,500. The debt-equity ratio is .68 and the total asset turnover i

Westkost [7]

Answer:

It is 6.58%

Explanation:

Debt-Equity Ratio = Debt/Equity

0.68= Debt/358,200

Debt = 0.68 x 358,200

Debt = $243,576

Total Asset Turnover = Revenue/ Total Asset

Total Assets = Debt + Equity = $243,576+ $358,200=$601,776

1.2= Revenue/601,776

Revenue= 1.2 x 601,776

=$722,131.20

Profit Margin = Net income/ Revenue x 100%

= $47,500/$722,131.20 x100%

= 6.58%

6 0

3 years ago

You're prepared to make monthly payments of $400, beginning at the end of this month, into an account that pays 5 percent intere

Gre4nikov [31]

Answer:

Explanation:

In this question we use the NPER function that is shown in the excel spreadsheet

Given that,

Present value = $0

Future value or Face value = $26,182

PMT = $400

Rate = 5% ÷ 12 months = 0.41666%

The formula is shown below:

= NPER(RATE,PMT,-PV,FV,type)

The PMT come in negative

So, after solving this, the number of payments is 58

6 0

3 years ago

Jeff brooks has recently moved into an apartment and has discovered that the previous tenant forgot to turn off the cable tv ser

SashulF [63]

<span>Economists would describe Jeff as a user of a public good. Jeff would be considered this because he is consuming something, but this consumption does not reduce the availability of the thing being consumed for others. Jeff is using the cable service, but this does not prevent anyone else from receiving and watching a cable service.</span>

4 0

3 years ago

A firm is considering a project with an annual cash flow of $300,000. The project would have a five year life, and the company u

nignag [31]

Answer:

Hence, the the maximum amount the company could invest in the project is $1081432.86 and yes, the project should be accepted as the value is greater than initial investment.

Therefore, the correct option is b. $1,081,434

Explanation:

Here, maximum amount means the sum of present value of all cash inflows

So,

Present value = all Year cash inflows × Discounted factor of each year

where,

Year 1, year 2, year 3, year 4, and year 5 have same cash flows i.e. $300,000

But the discounted factor is different in each year

The calculation of discounted factor = 1 ÷ (1+0.12) ^ 1

where,

0.12 = rate

^1 = for year 1, ^2 = for year 2 and so on.

The discounted rate for year 1, , year 2, year 3, year 4, and year 5 is 0.8929

, 0.7972

, 0.7118

, 0.6355

, 0.5674 respectively.

Now, multiply the cash flow amount with discounted rate for each year to get presented value of all years.

Year 1 = $300,000 × 0.8929 = $267,857.14

Year 2 = $300,000 × 0.7972 = $239,158.16

Year 3 = $300,000 × 0.7118 = $213,534.07

Year 4 = $300,000 × 0.6355 = $190,655.42

Year 5 = $300,000 × 0.5674 = $170,228.06

Then, sum all the presented values of all year to get maximum amount

= $267,857.14 + $239,158.16 + $213,534.07 + $190,655.42 + $170,228.06

= $1,081,432.86

So, we attached the sheet for better understanding.

Hence, the the maximum amount the company could invest in the project is $1081432.86 and yes, the project should be accepted as the value is greater than initial investment.

Therefore, the correct option is b. $1,081,434

7 0

3 years ago

Kirksand Airlines is well known for providing excellent customer service to its flyers. The staff members enquire and listen car

polet [3.4K]

Answer:

The correct answer is B. personalization.

Explanation:

At present, consumers no longer like the idea of being seen as simple numbers by brands and companies, this implies that those who seek to reach these individuals should work harder to change the way they relate and direct to this, and one of the most effective methods today is through personalization, which implies a better understanding of consumers to become more relevant to them. Salesforce notes that by 2021, 51 percent of consumers would be waiting for companies to anticipate their needs and make relevant suggestions before a contact is established.

Therefore, we can talk about personalization as an increasing tactic, which is being well perceived by businesses and consumers. Particularly in the case of business, the benefits have been significant, Monetate notes that 79 percent of organizations that exceed their revenue goals have a documented personalization strategy.

3 0

3 years ago