1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PIT_PIT [208]
3 years ago
8

Rob is a business analyst who argues that investing makes more profit when the inflation rate is high. He points to the high ret

urns in the 1980s when inflation was around 12% and returns were as high as 20% or higher. Evaluate Rob's claim.
Select the best answer from the choices provided.
A.
Rob is correct because stocks and other goods increase in value due to inflation.
B.
Rob is confusing the nominal rate of return with the real rate of return.
C.
Rob is forgetting that inflation causes most businesses to do poorly.
D.
Rob is correct because inflation enables dollar profits to buy more goods.
Business
1 answer:
kirill115 [55]3 years ago
4 0

B.  Rob is confusing the nominal rate of return with the real rate of return.

Nominal rate of return is the "face value" of returns, but the real rate of return factors in the negative effect that inflation has on buying power. Inflation takes away from any earnings because it reduces the value of money.

You might be interested in
Melanie is on a team of professionals working on an outdoor ad campaign. Her team has to make sure that the ad has maximum impac
Mrac [35]

Melanie's team should create an ad with an attractive image and minimal text.

Option B

<u>Explanation:</u>

Creating an advertisement with relevant and attractive image along with minimal texts like taglines would publicize the brand and would deliver the relevant message or information among the mass audience with ease and efficiency.

The color and contrast are also one of the important element in editing the image that has been selected for an advertising poster as this would readily  catch the eyes of the target audience.

Writing a pretty long text would not help as a passerby would never wait and read all the texts. Creating a poster with an attractive image and no text would not give the idea about what the ad is.

Therefore, advertising in outdoor would be created with a catchy image and slogan or tagline.

6 0
3 years ago
Read 2 more answers
Libre, Inc. has experienced bad debt losses of 5% of credit sales in prior periods. At the end of the year, the balance of Accou
Mama L [17]

Answer:

The estimated bad debt expense for the year amounts to $9,400

Explanation:

The  estimated bad debt expense  for the year is computed as:

As the percentage of credit sales method is used for estimating the bad debt expense. Therefore, it is computed as:

Bad debt expense = Net Credit Sales × Estimate Percent

where

Net credit sales amounts to $188,000

Estimate percent is 5%

So, putting the values above:

Bad debt expense = $188,000 × 5%

Bad debt expense = $9,400

Therefore, the bad debt expense amounts to $9,400

3 0
3 years ago
Jamie is analyzing the estimated net present value of a project under various conditions by revising the sales quantity, sales p
Brut [27]

Answer:

C. Scenario Analysis

Explanation:

Scenario Analysis is analysis of computing the Net Present Value by changing various variables, that is change in values of Sales, Variable Cost, Revenue, Cost of project and various other things. Basically it measures the Net Present Value with respect to various factors associated with calculating the net present value, as Jamie is calculating Net Present Value with different factors, that is in different scenarios, it is called Scenario Analysis.

8 0
3 years ago
For each of the five situations below, suggest the opportunity (real) cost of the person’s choice. In the text box, describe the
inessss [21]
1. When Tonya chose the chicken sandwich, her opportunity cost was the burger.

2. When Jimmy chose the licorice, his opportunity cost was the jelly beans. (It's the jelly beans since the nut clusters are not included in the next alternative because of his allergies to it.)

3. When Mary chose the jacket, her opportunity cost was either the dress or the shoe, whichever was her next best alternative. (The statement does not give enough information to identify her opportunity cost. It could not be both since an opportunity cost is the next <em>best</em> alternative and not <em>all</em> alternatives.)

4. When Joe chose the Ford truck, his opportunity cost was the Chevrolet.

5. When the city council chose to build the music stage, their opportunity cost was the wading pool. (The parking lot which people would have wanted is not considered because we are talking about the City Council's opportunity cost.)
4 0
3 years ago
Read 2 more answers
A bond with par value of $1,000 has an annual coupon rate of 4.8% and currently sells for $970. What is the bond’s current yield
podryga [215]

Answer:

The Bond's Current yield = 4.95%

Explanation:

Annual coupon = Value of Bond * Annual Coupon rate

Annual coupon =  $1000 * 4.8%

Annual coupon =$48

The Bond Current yield =Annual coupon / Current price

The Bond Current yield =  $48 / $970

The Bond Current yield = 0.049485

The Bond Current yield = 4.9485

The Bond Current yield = 4.95%

8 0
2 years ago
Other questions:
  • Kragle Corporation reported the following financial data for one of its divisions for the year; average invested assets of $470,
    13·1 answer
  • A supervisor who believes an employee's grievance is not a contractual violation should: accept the employee's grievance, and th
    13·1 answer
  • What is one of the first decisions an entrepreneur must make?
    6·2 answers
  • As an exporter, Delios Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Japan, Abe Imp
    9·1 answer
  • Your company obtains a short term loan on September 1st, 2019 to cover costs to purchase inventory. The loan is for $50,000, the
    14·1 answer
  • In your opinion ,what is the correct priority in making a business decision?
    11·2 answers
  • During March, XYZ Inc. transferred $50,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $56,000.
    10·1 answer
  • Which would you use to estimate the demand for a product at various prices?
    13·1 answer
  • A division reports the following figures: Sales = $14,000; Net income = $2,800; Average assets = $28,000. The division's profit
    5·1 answer
  • A reduction in the saving rate starting from a steady state with more capital than the golden rule causes investment to?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!