Answer:
1 year rate 2 year from now = 12% (Approx)
Explanation:
Given:
1-year rate = 8%
2-year rate = 9%
3-year rate = 10%
Computation:
According to Pure Expectations Hypothesis,
(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)
(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)
1.331 = 1.1881 (1 + 1 year rate 2 year from now)
(1 + 1 year rate 2 year from now) = 1.12
1 year rate 2 year from now = 0.12
1 year rate 2 year from now = 12% (Approx)
Answer:
a. 28390
Explanation:
Stockholders cash flow is the net of cash inflows from stockholders and cash outflows to stockholders.
Net Income = $129,650
Payout Ratio = 40%
Cash outflow
Amount of Dividend Paid = $129,650 x 40% = $51,860
Cash Inflow
Common stock issue = $80,250
Net Stockholder's cash flow = $80,250 - $51,860
Net Stockholder's cash flow = $28,390
Answer:
The three primary determinants of behavior in organizations are employee dynamics, available resources and work environments.
Answer:
Real income has increased by $720 in terms of dollar and 2% in percentage
Explanation:
<em>The real income is determined by adjusting the nominal income for inflation. The consumer price index (CPI) is used to measure the rate of inflation.</em>
R<em>eal income = Nominal income × CPI Base year/ CPI in current year</em>
Real Income = 32000 × 120/125
=$30,720
Change Real income
Change in real income ($) = 30,720 - 30,000
= $ 720
Change in real income (%) = (720/30,000) × 100
= 2%
Real income has increased by $720 in terms of dollar and 2% in percentage
Answer: When employees are provided with a conducive environment they perform better than normal and with good products and services customers are satisfied hence more profit. The CEO should ensure all department work with same goal for the benefit of the organization
Explanation:
Companies tend to focus on the non-economic goals such as providing a good place for employees to work, good product and services to the customers and acts as a good citizen in the society. Achieving these goals are costly and doing so might interfere with profit maximization but in long term achieving them is beneficial to the company. When employees are provided with a conducive environment they perform better than normal and with good products and services customers are satisfied hence more profit. The CEO should ensure all department work with same goal for the benefit of the organization