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satela [25.4K]
3 years ago
13

Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answe

r as a whole number. In part b, round your answer to 1 decimal place. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is the real interest rate?
Business
1 answer:
forsale [732]3 years ago
8 0

Answer:

1% negative

Explanation:

<u>a. What is the real interest rate?</u>

the inflation premium is an added value to the real interest rate to cover the effect of inflation and be more attractive to potential investor:

real interest rate + inflation premium = nominal interest rate

real interest rate + 2% = 1%

we clear real interest:

real interes rate = 1% - 2% = -1%

The real interest is 1% negative

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Decisions today are becoming _____ complex, due to _____ uncertainty in the decision environment. Question 25 options: 1) less,
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The answer is option 4 more and increased.

Explanation:

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3 years ago
If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to m
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Answer:A. government regulators and taxpayers.

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4 0
3 years ago
Beasley Company currently sells its products for​ $30 per unit. Management is contemplating a​ 10% increase in the selling price
Ray Of Light [21]

Answer:

Explanation:

Selling price per unit (next year) = 30 + 10 % of 30 = $33

Variable cost per unit (next year) = 30 * 40 % = $12

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7 0
3 years ago
Allen Lumber Company had earnings after taxes of $630,000 in the year 2009 with 370,000 shares outstanding on December 31, 2009.
Firdavs [7]

Answer:

$2.00

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E= 1.30*\$630,000\\E=\$819,000

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n=370,000+39,000\\n=409,000

Earnings per share for 2010 are determined by dividing total earnings by the number of shares:

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Earnings per share for the year 2010 were $2.00.

3 0
3 years ago
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