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4 years ago

Why is zero unemployment and zero inflation not ideal for the economy?

1 answer:

3 0

Zero unemployment and zero inflation is not good fpr the economy because inflation is important to keep the economy running.economis t call this sustainable inflation. when there is an inflation , you know that the price will rise in the future. your money is more valuable now since the price is lower then the future thus you sped noe instead of saving. this keeps the economy running.
If unmeployment were zero that would mean no new business could start, no existing business could expand and no one is entering the labor force. shortage of labor like this would increase the wage as the existing business have to compete for the labors and if wage sgoes up then prices goes up as well: inflation.

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Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as di

iragen [17]

Answer:

$29.70

Explanation:

Retention ratio = 1 - payout ratio

= ( 1 -0.5 )

= 0.5

Growth rate, g = ROE × Retention ratio

= 0.15 × 0.5

= 0.075

= 7.5%

Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]

= 2.5% + 1.44 × (11% - 2.5%)

= 14.74%

Intrinsic value = $\frac{\textup{D1}}{\textup{(Required return-Growth rate)
}}$

= $\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075)
}}$

= 29.69 ≈ $29.70

5 0

3 years ago

Andrew sold IBM stock to his sister Susan for $6,000. Andrew purchased the stock two years ago for $8,000. Susan sold the stock

klasskru [66]

Answer:

c. $1,300 gain

Explanation:

In this scenario, Susan recognized a $1,300 gain on this sale. This is because Susan originally purchased the stock for a total price of $6,000. When she sold the stock, she sold it for a higher price than what she originally paid for it therefore recognizing a gain. To calculate this gain we simply subtract her initial purchase price from her selling price of the stock which would give us a $1,300 gain.

$7,300 - $6,000 = $1,300

6 0

3 years ago

Which strategy is most likely to help a person gain confidence?

VARVARA [1.3K]

I would say it has to be b or e

6 0

3 years ago

Read 2 more answers

What is the simplest form of the ratio 11 : 16?

Sever21 [200]

Hello My Friend!

$11/16=0.6875

11 : 16 = 0.6875 : 1$

...Simplest form of the ratio 11 : 16 IS 11 : 16

In Other Words, 11 is prime so that is already in simplest form...It is already at it's simplest form.

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5 0

3 years ago

Following are the average accounts receivable and net sales reported recently by two large beverage companies (dollar amounts ar

Leokris [45]

Answer:

Part a.

Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

The following table shows the accounts receivable turnover ratio of MCB and ABI:

Particulars MCB ABI

Net sales $5,170 $39,046

Average Accounts Receivable $517 $2,606

Accounts Receivable Turnover rate 10 14.98

Part b.

Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.

Day's sale outstanding = Accounts receivable / Total credit sales × 365

The following table shows the days sale outstanding of MCB and ABI:

Particulars MCB ABI

Net sales $5,170 $39,046

Average Accounts Receivable $517 $2,606

Day's sale outstanding 36.5 24.36

7 0

3 years ago