Answer:
Lenders loose and borrowers gain
Explanation:
Whenever inflation increases the value of money falls and technically erodes interest rates (hence real interest rate falls although nominal rate stays the same)
In the scenario, if the inflation rate rises to 5.5%, then the real interest rate falls further from 1.5% to (5.75% - 5.5%) 0.25%, demonstrating that the lender is loosing further.
Contrarily, the borrower will technically be paying lesser interest to the lender because he will be paying lesser money in value to the lender both in terms of interest and principal
Answer:
C) $5,000
Explanation:
Since the price of the stocks first rose to $50, the account's equity was $50,000.
The SMA balance was = ($50,000 x 1/2) - $20,000 = $,5000
The SMA balance acts like a stabilizer and cannot be taken away even if the price of the stocks fall slightly. The price of stocks must fall 25% in order for the SMA to be withdrawn.
The investor's equity decreased = equity - margin requirement = $39,000 - $20,000 = $19,000, but the amount that the investor can borrow (SMA balance) will remain the same at $5,000.
Answer: Polycentric approach
Explanation:
A polycentric staffing policy is a form of staffing policy whereby the nationals of the host countries will be recruited and employed to helps manage the subsidiaries that are in their own country while the nationals of the parent countries will have to occupy th key positions that are available at th corporate headquarters.
This is the kind of approach that is used by Mexico-based Rodriguez Engineering Corporations in the question.
Answer:
Net operating income= 565,000
Explanation:
Giving the following information:
Krazy Kayaks sells its entry-level kayaks for $750 each. Its variable cost is $500 per kayak. Fixed costs are $25,000 per month for volumes up to 1,100 kayaks. Above 1,100 kayaks, monthly fixed costs are $60,000.
Sales= 2,500*750= 1,875,000
COGS= (500*2,500)= (1,250,000)
Gross profit= 625,000
Fixed costs= (60,000)
Net operating income= 565,000
Lowering the discount rate can promote full employment because <span>companies are more likely to expand and hire more workers. High inflation is the circumstance which usually accompanies a period of economic expansion. </span>
