Pencils and pens _____ descent notes, but a computer and calculator ____

In 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate

Georgia [21]

Answer:

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

Explanation:

Data provided:

Interest rates = 7.85 %

The rate of inflation = 12.3 %

Now,

The Real interest rate is calculated as :

Real interest rate = Nominal interest rate - Inflation rate

on substituting the respective values, we get

Real interest rate = 7.85% - 12.3%

Or

The real interest rate = - 4.45%

Here,

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

4 0

3 years ago

Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell

kotegsom [21]

Answer:

Alternative of cleaning and shipping is better as loss value is less.

Relevant cost of this alternative is $23,000 incurred for cleaning and shipping.

Explanation:

Evaluating both the proposals

In case the goods are sold as it is then net cost/ loss = Carrying value of inventory - Sales Revenue

= $125,000 - $45,000 = $80,000

In case the goods are cleaned and shipped then

Total cost = $125,000 + $23,000 = $148,000

Revenue = $80,000

Net loss/ cost = $148,000 - $80,000 = $68,000

Thus Since the loss value is less i alternative 2 that is of cleaning and shipping, it shall be chosen.

The relevant cost of that alternative is $23,000 incurred in cleaning and shipping.

4 0

3 years ago

Capacity conciderations in a hospital

Masja [62]

Capacity conciderations in a hospital are:

Productions and Operations Management

4 0

3 years ago

The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm

vladimir2022 [97]

Answer:

$70.26

Explanation:

Dividend payout ratio = Dividend per share / Earning per share

r = cost of equity = 10%, or 0.10

Discounting factor = 1 /(1 + r)^n

n = year

a. For during the rapid growth period

Dividend payout ratio = 20%, or 0.20

Growth rate = 20%, or 0.20

Earnings per share in year 1 = Last year's earnings per share * (1 + Growth rate) = $2 * (1 + 0.20) = $2.40 per share

Dividend per share in year 1 = Dividend payout ratio * Earning per share in year 1 = 0.20 * $2.40 = $0.48 per share

PV of year 1 dividend per share = $0.48 * (1/1.10^1) = $0.436363636363636

Earnings per share in year 2 = Earnings per share in year 1 * (1 + Growth rate) = $2.40 * (1 + 0.20) = $2.88 per share

Dividend per share in year 2 = Dividend payout ratio * Earning per share in year 2 = 0.20 * $2.88 = $0.5760 per share

PV of year 2 dividend per share = $0.5760 * (1/1.10^2) = $ 0.47603305785124

Earnings per share in year 3 = Earnings per share in year 2 * (1 + Growth rate) = $2.88 * (1 + 0.20) = $3.4560 per share

Dividend per share in year 3 = Dividend payout ratio * Earning per share in year 3 = 0.20 * $3.4560 = $0.6912 per share

PV of year 3 dividend per share = $0.6912 * (1/1.10^3) = $0.51930879038317

b. For during the slow growth period

Dividend payout ratio = 50%, or 0.50

Growth rate = 8%, or 0.08

Earnings per share in year 4 = Earnings per share in year 3 * (1 + Growth rate during slow growth) = $3.4560 * (1 + 0.08) = $3.73248

Dividend per share in year 4 = Dividend payout ratio * Earning per share in year 4 = 0.50 * $3.73248 = $1.86624 per share

Dividend per share in year 5 = Dividend per share in year 4 * (1 + Growth rate during slow growth) = $1.86624 * (1 + 0.08) = $2.0155392

Stock price in year 4 = Dividend per share in year 5 / (r - Growth rate during slow growth) = $2.0155392 / (0.10 - 0.08) = $100.77696

PV of stock price in year 4 = $100.77696 * (1/1.10^4) = 68.8320196707875

c. Calculation of the current price of the common stock

Current price of the common stock = PV of year 1 dividend per share + PV of year 2 dividend per share + PV of year 3 dividend per share + PV of stock price in year 4 = $0.436363636363636 + $0.47603305785124 + $0.51930879038317 + $68.8320196707875 = $70.26

Therefore, the current price of the common stock is $70.26.

4 0

3 years ago

In a small country, the adult population equals 10,000. In that country, 10,000 people are in the labor force and 7000 people ar

Neporo4naja [7]

The unemployment rate is calculated by dividing the overall labor force's size by the number of jobless people, then multiplying the result by 100.

In light of the incomplete facts, the answer is: it is unknown.

<h3>How is the size of the labor force determined?</h3>

An estimation of the size of the labor force in an economy is the labor force participation rate. The calculation is the proportion of the working-age non-institutionalized population, aged 16 and older, who are employed or actively looking for work.

<h3>How are the numbers for those not working determined?</h3>

Divide the total civilian noninstitutional population by the number of people who are employed or actively seeking employment to find the formula for the labor force participation rate.

To know more about unemployment rate visit:-

brainly.com/question/17255561

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3 0

1 year ago

Pencils and pens _____ descent notes, but a computer and calculator _____ needed to process data.

Pencils and pens _ descent notes, but a computer and calculator _ needed to process data.