So if each nominal is 5 and the inflation 1 so if you have 5 inflation you will have 25 nominal
Idk so you need to ask somebody else because I’m really dumb and I don’t have the answer for u
Answer:
The correct option is A,A. 7,000 = NA + 2,000 - (5,000) NA - NA = NA 7.000 FA
Explanation:
By issuing the treasury stock ,asset,cash to be precise increases by $7000($35*200) which implies a debit to the asset ,hence the $7000 seen on the left hand-side of the equation.
This transaction has no liability impact,as a result liabilities is denoted NA,not applicable.
The par value of the treasury is to be credited to treasury stock with $5,000($25*200).
Lastly the difference between the par value and the issue is credited to paid-in capital from treasury stock i.e($35-$25)*200))=$2000,this is depicted by $2000 in the equation
Answer:
I. Present values increase as the discount rate increases.
and
III. Present values are smaller than future values when both r and t are positive.
