Answer:
A. Stay the same
Explanation:
We need to compare the rate of price change and the rate of inflation.
Rate of price change = <u> $12 - $10</u> x 100
$10
=2/10 x 100
=0.2 x 100
=20%
inflation rate= <u>CPI year 2- CPI year</u> 1 x 100 %
CPI year 1
=180 -150 x 100
150
=30/150 x 100
=0.2 x 100
=20%
The price change are the inflation rate are the same.The real wages will stay the same
The answer is 567.879 percent
Answer: b. increases profits faster than does a low contribution-margin percentage
Explanation:
Contribution Margin refers to the amount of sales left after the Variable Costs of a good has been removed from it. That means Contribution Margin is simply Sales less Variable Costs. It helps to check how much is left to deal with Fixed Costs and how much profit remains after.
The Break-Even Point in sales refers to the point where Total Costs is equal to Total Revenue. At this point both variable costs and fixed costs have been covered by the Revenue.
If you get to this Break-Even Point then, that means you don't have to worry about Fixed Costs anymore and your only worry is the Variable Costs which are present per good. At this point therefore, a Higher Contribution Margin percentage tells that Variable Costs are quite less than sales, this would enable a company to gain profit faster because Fixed Costs are out of the way and anything made over Variable Costs now is Profit.
Answer:
D. The outlet substitution bias injects an upward bias into the CPI
Explanation:
Answer:
$21.859
Explanation:
According to the scenario, computation of the given data are as follow:-
Present Value = D0 × (1 + growth rate)^time ÷ (1 + Required Rate of Return)^time period
1st Year PV = $1 × (1 + 0.20)^1 ÷ (1+ 0.12)^1
= 1.20 ÷ 1.12
= 1.071
2nd Year PV = $1 × (1 + 0.20)^2 ÷ (1+ 0.12)^2
= $1 × (1.44) ÷ 1.254
= $1.148
3rd Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10) ÷ (1 + 0.12)^3
= $1 × (1.44) × (1.10) ÷ 1.405
= $1.127
4th Year PV = $1 × ( 1 + 0.20)^2 × (1 + 0.10)^2 ÷ ( 1 +0.12)^4
= $1 × (1.44) × (1.21) ÷ 1.574
= $1.107
5th Year PV = $1 × (1 + 0.20)^2 × ( 1 +0.10)^3 ÷ (1 + 0.12)^5
= $1 × (1.44) × (1.331) ÷ 1.762
= $1.088
6th Year PV = $1 × (1 + 0.20)^2 × (1 + .10)^3 × (1.05) ÷ [(0.12 - 0.05) × (1+.12)^5]
= $1 × (1.44) × (1.331) × (1.05) ÷ (0.07) × (1.762)
= $2.012 ÷ 0.1233
= $16.318
Now
Share’s Current Value is
= $1.071 + $1.148 + $1.127 + $1.107 + $1.088 + $16.318
= $21.859
We simply applied the above formula
