Answer:
The percentage change in nominal GDP from 2013 to 2014 was 4.29%
The percentage change in real GDP from 2012 to 2013 was 1.48%
The percentage change in real GDP from 2012 to 2013 was higher than the percentage change in real GDP from 2011 to 2012. FALSE
Explanation:
In order to calculate this we just have to calculate the percentages with a rule of thirds:
To calculate the first one we use the nominal GDP which is the GDP with the current market value:
To calculate the change in real GDP we use the values adapted to a pre-agreed monetary value, in this case the dollar at 2009:
To calculate the 2011 to 2012 we insert the values:
So with this we know that it is wasn´t higher the percentage change from 2012-2013, than that of 2011-2012
Answer:The cost of capital that will make both investments equal is 17.045%
Explanation:
Investment A
$1.5 million will be received in perpetuity we can there use perpetuity formula to Value investment A.
Value of Investment A = 1500 000/r
Investment B
$1.2 Million will be received in Investment B with a growth rate of 3% will then use Gordon's growth rate model to value investment B.
Value of investment B = (1200 000 x (1+0.03))/(r - 0.03)
Value of investment B = 1236000/(r - 0.03)
1500 000/r = 1236000/(r - 0.03)
1236000(r) = 1500000(r - 0.03)
(r - 0.03) = 1236000( r)/1500000
r - 0.03 = 0.824r
r - 0.824r = 0.03 = 0.176r = 0.03
r = 0.03/0.176 = 0.170454545
R = 17.045%
The cost of capital that will make both investments to be equal is 17.045%
Answer:
Larger-sq and small Se.
Explanation:
Regression line is a line that clearly describes the behavior of a given set of data.
Regression lines are very essential for forecasting processes. The importance of the line is to describe the interrelation of a dependent variable (Y variable) with one or many independent variables (X variable).
An analyst can forecast future behaviors of the dependent variable by making use of the equation gotten the regression line. This is done by inputting different values for the independent ones. Regression lines are frequently employed in the financial sector.
Financial analysts make use of linear regressions to forecast stock prices, commodity prices and also to carry out valuations for many different securities. Companies use regressions for the purpose of forecasting sales, inventories and a lot of other variables that are needed for strategy and planning. The regression line formula is represented below:
(Y = a + bX + u)
Answer:
B. increases; decreases
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.
Generally, if the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars increases and the supply of dollars decreases because of the high value of the dollar compared to the other currency.
Answer:
The correct answer is letter "A": the five forces framework.
Explanation:
Porter's Five (5) Forces is an analysis scheme created by American economist Michael E. Porter (<em>born in 1947</em>). The ultimate goal of this analysis is to help managers set their expectations of profitability because as competition increases, profitability decreases. Three of the five forces relate to those involved in the industry. The other two apply to the suppliers, the vertical participants, and consumers.
