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kobusy [5.1K]
3 years ago
11

The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in 2011 is $700. if 2005 is used as the base

year, the price index for 2011 is
Business
1 answer:
Natalija [7]3 years ago
4 0

$127.27

Price index is (new year/old year)*100

If 2005 is the base/old year, then:

$700/550 = 1.27273 * 100 = $127.27

Price index is used to show inflation from year to year by the change in price for the same goods in a base year to current year. Price index for the base year compared to the base year will always be 100, so anything above that shows inflation.

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Last year if 97 percent of the revenues of a company came from domestic sources and the remaining revenues, totaling $450,000, c
serg [7]
If 97% came from domestic sources then 3% came from foreign sources. This means that $450,000 is 3/100 of the total amount. You need to divide 450,000 by 3 to get 1/100 (1%) of the total amount, then multiply that number by 100 to give you the sum of 100/100 (100%) of the company's revenues:
450,000/3=150,000×100= $15,000,000
So, the company made $15,000,000 last year


7 0
3 years ago
Each year 50 randomly selected haque & slash hair styling franchises are surveyed to determine: (1) the average annual earni
Vikentia [17]
<span>µ, or the population mean, may be defined as the average annual earning of all Haque & Slash hair styling franchises. x measures only the average annual earnings of the 50 randomly selected Haque & Slash hair styling franchises.</span>
6 0
3 years ago
If 1-Year Treasuries are yielding 5%, all preferred stocks are yielding 10%, and a manager selects a portfolio of preferred stoc
Burka [1]

Answer:

Risk Premium is 10%

Explanation:

Government treasuries represent risk free rate of return.

[tex]Risk Premium=R_{m}-R_{f}/tex] ,

where, [tex]R_{f} = Risk\ Free\ Rate\ Of\ Return/[tex]

           [tex]R_{m} = Market\ Rate\ Of\ Return/[tex]

           Risk Premium = 15 - 5 = 10%

Risk Premium is defined as return earned on market portfolio in excess of rate of return earned on risk free assets such as government treasury bonds.

So, Risk Premium refers to the compensation an investor expects to earn for assuming higher risk by investing in market portfolio instead of investing his money in risk free class of assets.

4 0
3 years ago
Read 2 more answers
A municipal dealer places an order for $100,000 of new issue G.O. bonds, M '45 with the syndicate manager. The bonds will be pla
professor190 [17]

Answer:

The options for the question is:

A. pre-sale net

B. syndicate group net

C. designated net

D. member takedown

Explanation:

The answer is D. member takedown

The priority accorded to the order by the manager will be treated as member takedown orders, and if there is sufficient interest in the issue, the order would not be filled because of the other orders with higher priority being filled first.

When an order is placed with the syndicate by a member for an "accumulation account" that is being managed by that member, it is strange in that the bonds are not being sold to the general public.

The syndicate member must disclose to the manager when the order is placed; the manager will then disclose any of these orders that have been filled to the other syndicate members when the account is closed; and the manager will fill these orders last- meaning they get priority after pre-sales, group, and designated orders.

8 0
4 years ago
eaver Chocolate Co. expects to earn $3.50 per share during the current year, its expecteddividend payout ratio is 65%, its expec
Agata [3.3K]

Answer:

cost of equity  = 13.36  %

Explanation:

given data

earn = $3.50

ratio = 65%

growth rate = 6.0%

common stock currently sells = $32.50

flotation cost = 5%

to find out

cost of equity from new common stock

solution

we get here cost of equity from new common stock that is express as

cost of equity  = \frac{D1}{Po-(1-f)} + g   ...................1

here D1 is expected dividend  and Po is current price  and g is growth rate and f is flotation cost and

D1 = 3.50 × 0.65

so from equation 1 we get

cost of equity  = \frac{3.50*0.65}{32.50(1-0.05)} + 6%

cost of equity  = 0.1336

cost of equity  = 13.36  %

5 0
4 years ago
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