The correct answer is option A) "Unlimited Life". A company that has Unlimited Life is a company that will operate forever unless it is formally dissolved. Pips Burrito has lived well past the small business that ran side by the road, the fact that now is listed on the NYSE after 50 years of operation, is an example of a strong company that would operate forever unless it is formally dissolved.
Using the Fisher equation, which shows the exact
relationship between nominal interest rates, real interest rates, and inflation
is:
The solution would be:
(1 +R) = (1 +r)(1 +h)
R= (1 + .031)(1 + .019) – 1
= (1.031)(1.019) – 1
= 1.050589 – 1
=0.050589 or 5.059%
<span>Trees grow below or above the timberline, or tree line, depending on the environmental conditions present. Alpine tree lines are common near or on mountains and mountain ranges. The weather above the timberline is too cold and possibly too dry for trees to grow and take root. Desert tree lines are common in and near deserts. The soil is too dry for the trees to take root and get the water and nutrients they require. Desert-Alpine tree lines are environments where the elevation is too high and the soil too dry to foster tree growth.</span>