Answer:
a.borrowers gain at the expense of lenders.
Explanation:
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.
As inflation increases, two things happen
1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser
2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.
Answer:
$587,760
Explanation:
Budgeted factory overhead for the year at $645,792 budgeted direct labor hours for the year are 260,400.
If actual direct labor hours for the month of May are 237,000 and the labour hour is used as the measure for determining the overhead cost to be allocated, then
Overhead allocated for May = (237,000/260,400) × $645,792
= $587,760
Answer:
It is E
Explanation:
Each different project has different risk profile i.e business risk and finance risk. At such , these risks must be adjusted for to produce project specific cost of capital.
If a company is investing in another line of business with a different risk profile to the existing business, this will have an impact on the WACC to be used to assess the viability of the new project.
Likewise, if the new project is being financed with a mixed of capital different from the current finance structure, such will equally impact on the WACC to be used.
My Answer: The entry of new firms cause the demand curve of an existing firm in a monopolistically competitive market to shift to the left because each will have a smaller share of the existing market and become more elastic since <span>consumers will have additional choices.
Hope I helped! :D</span>
