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3 years ago

If individuals forecast future prices by examining the rates of inflationof the present and recent past, they are using:

Business

1 answer:

german3 years ago

3 0

Answer:

a. adaptive expectations

Explanation:

When we say someone is using adaptive expectations, it means that they are using past events or experiences in order to predict future behaviors or trends. This methodology is commonly used to predict inflationary rates and how they affect the prices of assets in the future. Generally people will believe that past events will tend to repeat themselves in the future.

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What might be reasons that small-company stocks earn higher returns than large-company stocks on average?

Maslowich

Answer:

small company stocks are less safe and liquid and is more exposed to inflation

Explanation:

From the period of 1926 to 2010, the small company stock had the highest average return of securities as compared to the company stocks of large company. Some of the reasons for the highest return on average of a small company stock than the small company stock are :

1. The small company stocks are less safe.

2. The small company stocks are less liquid.

3.They are more exposed to the inflation.

3 0

3 years ago

Brent Bishop is the vice president of operations for Southern Sweets Bakery. He drives a 2017 Toyota Prius Prime as his company

prohojiy [21]

Answer and Explanation:

fair market value=$ 37,500

Residual value = $ 10,600

Lease term = 12 months

Rate = 20%

Ans:

Monthly pay = $2668.53

Total of 12 months payments = $32,022.42

Total interest = $ 5122.42

Principle amount = 84%

Interest = 16%

Benefits of the brent's company car are pay the 35600 miles during $ 32000 approx.

8 0

3 years ago

Read 2 more answers

You own 100 shares a $50 par value preferred stock. The stock has a 12% dividend rate, and a current market price of $85 per sha

andriy [413]

Answer:

Option (a) is correct.

Explanation:

Value of stock:

= Present value of all cash flows

$=Dividend[\frac{1-\frac{1}{(1+r)^{n} } }{r}] + Par\ value[\frac{1}{(1+r)^{n} }]$

$=50\times 0.12[\frac{1-\frac{1}{(1.08)^{5} } }{0.08}] + 50[\frac{1}{(1.08)^{5} }]$

= $6 × 3.9927 + $50 × 0.6806

= $23.96 + $34.03

= $57.99 or $58

5 0

4 years ago

Sales of Granite City Products Inc. have been on a steady decline for the last 12 months. A market research study conducted reve

guapka [62]

Answer:

$336.00

Explanation:

Calculation for the target cost per unit

First step is to calculate the The target sales revenues

The target sales revenues =($480 × 280)

The target sales revenues = $134,400

Second step is to calculate the The target operating income

The target operating income=($134,400 × 30%)

The target operating income = $40,320

Third step is to calculate the The target cost

The target cost=($134,400 –$40,320)

The target cost = $94,080

Now let calculate the The target cost per unit

The target cost per unit = $94,080 / 280

The target cost per unit= $336.00

Therefore The target cost per unit is $336.00

8 0

3 years ago

BARSIC [14]

Answer: The answer is $128,000

Explanation:

$ $ $ $

Selling price. 180,000. 140,000. 120,000. 60,000

Less 10% commission 18,000. 14,000. 12,000. 6,000

-------------- -------------- --------------- -------------

162,000. 126,000 108,000. 54,000

Less cost. 128,000. 133,000. 90,000. 45,000

--------------- ---------------- --------------- ----------------

34,000 (7,000) 18,000. 9,000

Add: replacement cost 120,000. 130,000 110,000. 41,000

------------------ --------------- --------------- --------------

Inventory 154,000. 137,000. 128,000. 50,000

----------------------- ----------------- ------------------ -----------------

3 0

3 years ago