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3 years ago

7. Identifying costs of inflation

Business

1 answer:

Kobotan [32]3 years ago

6 0

Answer:

C. Shoesleather costs

Explanation:

Shoe-leather costs refer to the time, energy and effort people take such as holding less amount of money and going to the bank quite often to make deposits in order to counteract the effect of inflation on the eroding purchasing power of money.

In order to prevent the value of money in her cash register from falling too quickly, Juanita sends an employee to the bank four times per day to make deposits in an interest-bearing account that protects the store's revenues from the effects of inflation.

Hence, this is an example of the Shoes-leather costs of inflation.

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Juggernaut Satellite Corporation earned $18 million for the fiscal year ending yesterday. The firm also paid out 30 percent of i

Rudik [331]

Answer:

The required rate of return on the stock is 12.26%

Explanation:

Required rate of return = r= D1/P0+ g

First we need to find out the divident paid in one year (D1) and the dividend growth rate (g).

Dividend per share = (Net income × Payout ratio) / No. of Shares outstanding

= ( 18,000,000 * 0.30) / 2,000,000

Dividend per share= $2.7.

Now we will find out the divident growth rate,

g= ROE * b

g = 0.13 * 0.70

growth rate = 9.1%.

Now we have all the data to find out the required rate of return by r= D1/P0+ g,

r = 2.7(1+0.091) / 93 + 0.091

r = 0.1226 or 12.26%

---> we used D1= 2.7(1+0.091) because we have to find the value of dividend paid in one year.

6 0

3 years ago

Read 2 more answers

Which of the following is exemplified by customers finding a different way to get the product or service?

Ipatiy [6.2K]

Answer:

(A) Customer disloyalty

Explanation:

Customer disloyalty

It is very difficult and require a lot of time to build any customer's loyalty .

The company may feel happy for any positive comment from a customer .

But the disloyalty is not acceptable for any company .

Even the customer disloyalty is not necessarily connected with the rise in the prices , or poor service , or distrust .

Hence , from the question , The correct option is Customer disloyalty .

4 0

3 years ago

If a company revenue is 50 billion usd a year, how much money does it make per hour

ANEK [815]

How many hours in a year? 8,760.

The business would be making about $5,707,762.5 per hour.

3 0

4 years ago

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p

photoshop1234 [79]

Answer:

SONIC INC.

SALES BUDGET

FOR THE MONTH ENDING JUNE 30

Product and Area Unit sales volume Unit selling Price Total sales

Rumble

Midwest Region 12,000 $160 $1,920,000

South Region 14,000 $160 $2,240,000

Total 26,000 $4,160,000

Thunder

Midwest Region 3,500 $200 $700,000

South Region 4,000 $200 $800,000

Total 7,500 $1,500,000

Total Revenue from sales = $4,160,000 + 1,500,000 = 5,660,000

2. SONIC INC.

PRODUCTION BUDGET

FOR THE MONTH ENDING JUNE 30

UNITS RUMBLE UNITS THUNDER

Expected unit to be sold 26,000 7,500

Add: Desired Inventory June 30 500 250

Total 26,500 7,750

Less: Estimated Inventory June 1 750 300

Total units to be produced 25,750 7,450

7 0

3 years ago

A disadvantage of using social media for marketing research is

Elis [28]

Answer:

the sample of individuals from whom content is gleaned may not be statistically representative of the marketplace.

Explanation:

The product that is promoted by Marketing team tend to be suitable only for costumers with specific set of characteristics. (Could be depended on their age, income, gender, etc)

The data that is gained from internet more often than not will come from anonymous Account. You can never be sure about the account's owner identity and characteristic.

Which mean that the person from which the data is taken do not necessarily represent the market demographic that the marketing team want to target.

6 0

4 years ago