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xxMikexx [17]
3 years ago
9

Due to a recession, expected inflation this year is only 4.25%. However, the inflation rate in Year 2 and thereafter is expected

to be constant at some level above 4.25%. Assume that the expectations theory holds and the real risk-free rate (r*) is 3.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 1? Round your answer to two decimal places.
Business
1 answer:
deff fn [24]3 years ago
7 0

Answer:

Explanation:

Yield on 1 year trasury bond: r1=4.25+3.5 = 7.75%

Now, yield is r3 = 7.75+1.5 = 8.25%

r3=r*+inf

8.25=3.5+inf

inf=4.75%

4.75 = (4.25+i+i)/3

14.25 = 4.25 +2i

2i = 10

i = 5%

Inflation expected after year 1 is 5%

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Prepare a direct materials purchasing plan for January, February, and March, based on the following facts. Lana Gonzales owns a
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Answer:

January cost $702,200

February cost $812,200

March cost $950,400

Total Purchase cost    

Particulars                     January February  March

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Explanation:

R.M budget - blades    

Particulars  January February March April

Planned production  11000 13000 16000 12000

Blades req. per unit  4          4                 4                      4

Material req. for prod. 44000 52000 64000 48000

Add: Desired ending inventory 20800 25600 19200 0

Less: Beginning inventory  13000 20800 25600

Net units of blades req. 51800 56800 57600

Cost per blade  $             4.00 $             4.00 $             4.00

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R.M budget - motor    

Particulars  January February March April

Planned production  11000 13000 16000 12000

Motor req. per unit  1 1 1 1

Material req. for prod. 11000 13000 16000 12000

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Purchase cost of motor $ 495,000.00 $ 585,000.00 $ 720,000.00

6 0
3 years ago
Luna wanted to convince the technology department at her company to install new accounting software. Some staff members supporte
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Luna realized that the undecided group was her target audience  so she focused most of her effort on them.

<u>Explanation: </u>

A targeted audience is a publication, advertising or other text.   It is a particular group of consumers in the standard target market of marketing and advertising, known as targets or recipients of a specific ad or email.

In the end, it all includes assessing relevance for a target audience profile. You will attract a customer more often if your services and the goods you deliver suit what your audience wants.  

If your customer you want is "everybody," it's very difficult for you to communicate in a deeper way with anyone. The more connected you are to others; the more likely you are to be a protector and a loyal user of your company.

7 0
3 years ago
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per
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Answer:

50%

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The formula and the computation of the contribution margin ratio is shown below:

Contribution margin ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

where,

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= $40 per unit - $20 per unit

= $20 per unit

So, the CM ratio is

= ($20 per unit) ÷ ($40 per unit) × 100

= 50%

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In which of the following situations is having a good credit score important?
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A because if you bought a car you would have good credit score

hope this helped
7 0
3 years ago
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