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3 years ago

Inflation is a general rise in the level of prices experienced by people in a nation.

Business

1 answer:

vladimir2022 [97]3 years ago

4 0

Answer:

True.

Explanation:

Inflation is an economic term that can be defined as the increase in the prices of a product on the market in a given period.

It can occur due to several factors, when there is an imbalance between supply and demand, then it is correct to say that when the demand for a product is greater than the supply, there will be an increase in prices and, consequently, inflation.

It can also occur when there are situations of monopoly, which is the pricing of a product controlled by a company.

Another factor that causes inflation is the increase in a company's production costs, which can be caused by factors such as scarcity, or economic crisis.

Uncontrolled inflation has a negative impact on the consumer's life, which starts to lose its purchasing capacity and has its quality of life reduced.

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Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $628,000. The curren

ArbitrLikvidat [17]

Based on the information given the levered value of the firm is $3,824,318.

First step is to calculate the Unlevered firm value

Unlevered firm value = EBIT(1 - Tax) / Cost of equity

Unlevered firm value= $628,000 x (1-.35)/.176

Unlevered firm value = $628.000×.65/.176

Unlevered firm value = $2,319,318

Second step is to calculate Levered firm value

Levered firm value = Unlevered firm value + (Tax rate× Debt))

Levered firm value= $2,319,318 + (.35 x $4,300,000)

Levered firm value= $2,319,318 +$1,505,000

Levered firm value = $3,824,318

Inconclusion the levered value of the firm is $3,824,318.

Learn more about levered value here:brainly.com/question/20067496

8 0

3 years ago

Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with a

MAVERICK [17]

Answer:

Profit will reduce by $28,000

Explanation:

The impact on profit that would result from dropping Conway is shown below:-

Alanson Boyne Conway Total

Sales revenue $1,024,000 $185,000 - $1,209,000

($1,280,000 × 80%)

Less

Variable expenses $892,000 $45,000 - $937,000

($1,115,000 × 80%)

Contribution margin$132,000 $140,000 $ - $272,000

Less:

Direct fixed expenses

Depreciation $50,000 $15,000 $10,000 $75,000

Salaries $95,000 $85,000 $ - $180,000

Segment margin ($13,000) $40,000 ($10,000) $17,000

Existing Profit $45,000

Profit will reduce by $28,000

6 0

3 years ago

The Saturn Company records all collections from customers (including 5% sales tax) in the Sales Revenue Account. The account bal

iris [78.8K]

Answer:

$5,000

Explanation:

Calculation for what the Sales Tax Payable will be:

Sales Tax Payable=5% sales tax*Account balance $100,000

Sales Tax Payable=$5,000

Therefore the Sales Tax Payable will be: $5,000

8 0

3 years ago

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price,

11Alexandr11 [23.1K]

Answer:

A sales.

Explanation:

The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.

In this scenario, Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is a sales.

4 0

3 years ago

The demand function is given by

Jlenok [28]

Answer:

Q=120−4P

Explanation:

putting P = 20 we get

q= 40

we know that elasticity is quantity demanded / price

hence the correct option: D

5 0

3 years ago