Answer:
Nominal interest rate (n) = 10% = 0.10
Inflation rate (i) = -2% = -0.02
Real interest rate (r) = ?
Application of Fisher's Equation
(I + n) = (1 + r)(1 + i)
(1 + 0.10) = (1 + r)(1 + -0.02)
1.10 = (1 + r)(0.98)
<u>1.10</u> = 1 + r
0.98
1.1224 = 1 + r
1.1224 - 1 = r
r = 0.1224 = 12.24%
Jimmer's real income will change by 12.24% next year.
Explanation:
In the determination of the rate of change in real income, there is need to apply Fisher's equation. The nominal rate and inflation rate have been given, thus, we will make the real rate the subject of the formula.
Answer:
$10 million
Explanation:
Calculation for the reported profit for the first year of the contract
Using this formula
Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)
Let plug in the formula
Reported profit = ($30 million / $75 million)×($100 million – $75 million)
Reported profit=0.4 million ×25 million
Reported profit= $10 million
Therefore the reported profit for the first year of the contract will be $10 million
Answer:
C.
“entrepreneurship + business + development - branding”
Explanation:
Researchers usually put a hyphen before a word as a technique to exclude it from online search results. This method allows for narrowing down results to the desired pages only. When searching for keywords that are frequently used together, putting a hyphen helps exclude unwanted results.
The Northern Hemisphere will be in summer with it is tilted towards the sun, and the Southern Hemisphere will be in winter because it is tilted away.
This is easy to remember because when one hemisphere is closer to the sun, it will be warmer.
Answer:
Company 1 = $2 per share
Company 2 = $2.50 per share
Explanation:
Given that,
EBIT for both companies = $1,000
Number of shares outstanding for company 1 = 500
Number of shares outstanding for company 2 = 300
Interest paid by company 2 = $250
EPS for company 1:
= (Total income - Preferred dividend) ÷ Shares outstanding
= ($1,000 - $0) ÷ 500
= $2 per share
EPS for company 2:
= (Total income - Preferred dividend) ÷ Shares outstanding
= ($1,000 - $250) ÷ 300
= $750 ÷ 300
= $2.50 per share
