Generally, the Central Bank will reduce the interest rate to allow banks to lend money at a lower rate, thus infusing the macro-economy with funding on medium to large ticket items.
The adjusted rental rate is $41.60.
<h3>What is the adjusted rental rate?</h3>
Price index measure the relative change in prices relative to a base year. Changes in indexes give a measure of inflation in the economy. The rental rate would be adjusted for inflation.
Inflation is when the general price level in an economy increases. Inflation can be as a result of an increase in the demand for goods and services or an increase in the cost of production.
The adjusted rental rate can be determined by first calculating the inflation rate and then increasing the rent for the calculated inflation rate.
Inflation rate = 1.9 - 1.6 = 0.3 = 30%
The adjusted rental rate = (1.3) X $32 = $41.60
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We can actually deduce here that when building the Complete 2nd Order Model, one can do all except: C. Create an interaction between age and each of the levels of job satisfaction.
<h3>What is Complete Second Order Model?</h3>
The complete second degree (order) model is actually known to be a polynomial model that includes the linear terms, second degree terms and the interaction term.
The options that complete the question are:
A. Create a curvilinear term for job satisfaction
B. Create an interaction between unemployment rate and age
C. Create an interaction between age and each of the levels of job satisfaction
D. Create a curvilinear term for age.
Thus, options C is the one that wouldn't be carried out in the Complete Second Order Model.
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Answer:
The firm set as the required rate of return for the project is 14.732%
Explanation:
For computing the required rate of return, the following formula should be used which is shown below:
= Risk free rate of return + (Beta × market risk premium) + adjustment
where,
Risk free rate of return is 4.1%
Beta is 1.19
Market risk premium is 7.8%
Adjustment is 1.35%
Now put these values to the above formula
So, the value wold be equal to
= 4.1% + (1.19 × 7.8%)+ 1.35%
= 4.1% + 9.28% + 1.35%
= 14.732%
The standard deviation is irrelevant. Therefore, it is not considered in the computation part.
Hence, the firm set as the required rate of return for the project is 14.732%
Answer:
Date Accounts Titles and Explanations Debit Credit
Sept, 11 Cash $450
2016 Sales $450
(To record the Cash Sales)
Sept, 11 Warranty Expenses $40.50
2016 ($450 x 9%)
Estimated Warranty Payable $40.50
(To record the Warranty Expenses)
July, 24 Estimated Warranty Payable $32
2017 Repairs Parts Inventory $32
(To record the material taken from Inventory)
