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3 years ago

__________ can be used to create a perfect inflation hedge.

Business

1 answer:

34kurt3 years ago

3 0

Answer:

c. TIPS

Explanation:

TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.

Hence, in this situation, the correct answer is option C. TIPS

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Islander Inc. is a new firm in a rapidly growing industry. The company would be paying $2.50 in dividend next year. After that t

QveST [7]

Answer: $42.93

Explanation:

To solve this question goes thus:

Year 1:

Cash flow = $2.50

PV at 10% = 0.9091

Present value = $2.27

Year 2:

Cash flow = $2.70

PV at 10% = 0.8264

Present value = $2.23

Year 3:

Cash flow = $2.92

PV at 10% = 0.7513

Present value = $2.19

Price at Year 3:

Cash flow = $48.23

PV at 10% = 0.7513

Present value = $36.24

Price to be paid = $2.27 + $2.23 + $2.19 + $36.24 = $42.93

5 0

3 years ago

Bianca's discount home furnishings store is in a strip mall. She wants to know what other businesses in the strip mall her custo

lora16 [44]

Answer:

observation

Explanation:

Based on the information provided within the question it can be said that in this scenario Bianca will most likely use observation. That is because the best way of gathering this information is to observe each customer as they walk out of the store and see which store they go into next. This information can be written down and reviewed later.

7 0

3 years ago

Read 2 more answers

A new operating system for an existing machine is expected to cost $565,000 and have a useful life of six years. The system yiel

Inessa [10]

Answer:

The net present value of each potential investment:

Machine A Machine B

NPV $167,675 $2,267

Explanation:

a) Data and Calculations:

Machine A Machine B

Cost of machine $565,000 $410,000

Incremental after-tax income 165,000 75,000

Salvage value 25,000 26,000

Estimated useful life 6 years 8 years

Required rate of return 10% 10%

Annuity factor 4.355 5.335

PV factor 0.564 0.467

PV of incremental after-tax income $718,575 $400,125

($165,000*4.355) ($75,000*5.335)

PV of salvage value $14,100 $12,142

Total PV of income $732,675 $412,267

NPV $167,675 $2,267

= Total PV of income minus PV of initial investment cost

7 0

3 years ago

Country X, a poor country, invents a revolutionary electronic product. The country markets this new product in other poor countr

Scorpion4ik [409]

Answer:

Free trade

Explanation:

Correct word for the given statement is free trade

The hypothesis competitive advantage recommends that exchange is a positive-sum game in which all nations that take part acknowledge monetary increases. In that capacity, this hypothesis gives a solid method of reasoning to empowering organized commerce.

The approach doesn't limit imports or fares; it can likewise be comprehended as the free market thought applied to worldwide exchange.

8 0

3 years ago

In 2002 the u.s. had a gpd (gross domestic product) of $10.5 trillion. what does that mean

olganol [36]

Thats how much product was produced and sold in the united states

3 0

3 years ago