Cost push inflation is caused due increase in cost of factor of production which leads to decrease in aggregate supply.
thus aggregate supply tend to shift leftward.
thus it is false
Answer:
The company records the investment by the entry:
(D) debit Cash and credit Owner's Equity
Explanation:
Mr. Decker invested $20,000 in cash in his new business. He is the Owner of the company.
In the case, the company that he invested received cash from Mr. Decker.
The company will record the increasing in cash and increasing in Owner's Equity account by the journal entry:
Debit Cash $20,000
Credit Owner's Equity $20,000
$352,696 lender stand to lose in the absence of pmi. A borrower may be required to PMI as a condition of obtaining a conventional mortgage loan.
<h3>What is Private Mortgage Insurance (PMI) ?</h3>
Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. When a buyer puts down less than 20% of the home's price, the majority of lenders demand PMI.
In contrast to most insurance types, this one safeguards the lender's investment in the house, not the policyholder. However, PMI enables some people to purchase a home more quickly. PMI makes it possible for people to get financing if they decide to put down between 5% and 19.99% of the home's cost.
It does, however, incur additional monthly expenses. Until they have built up enough equity in the property that the lender no longer views them as high-risk, borrowers must continue to pay their PMI.
Formula for calculating PMI :Divide the loan amount by the property value. Then multiply by 100 to get the percentage. If the result is 80% or lower, your PMI is 0%, which means you don't have to pay PMI.
To learn more about mortgage refer :
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<h3>Advertising expenditures to introduce a new product line is not a capital expenditure.
</h3>
Explanation:
- Buying a new machinery and associated sales tax is a capital investment.
- Installation of elevators to replace escalators is a capital investment.
- Purchasing a patent is a capital investment.
- Advertising costs will in most cases fall under sales, general, and administrative (SG&A) expenses on a company's income statement.
So, Advertising expenditures to introduce a new product line is not a capital expenditure.
Answer:
A. It will stay the same.
Explanation:
The formula to compute the dividend yield is shown below:
= (Annual dividend ÷ market price) × 100
Since in the question, it is given that the expected dividend is growing at the constant growth rate i.e 6.50%, so the expected dividend yield will remain the same in the future.
As it shows a direct relationship between the growth rate and the dividend yield plus the market price is growing at a steady rate
