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olganol [36]
3 years ago
15

An investment offers a total return of 15 percent over the coming year. Janice Yellen thinks the total real return on this inves

tment will be only 11 percent. What does Janice believe the inflation rate will be over the next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Inflation rate %
Business
1 answer:
Ludmilka [50]3 years ago
8 0

Answer:

The inflation rate of return is 3.60%

Explanation:

As we know,

Inflation rate of return = {( 1 + nominal rate of return) ÷ ( 1+ real rate of return)} - 1

= {( 1 + 15%) ÷ (1+11%)} - 1

= (1.15) ÷ (1.11)} - 1

= 1.0360 - 1

= 0.360 or 3.60%

The inflation rate of return shows a relationship between the nominal rate of return and the real rate of return. We simply divide the nominal rate of return by real rate of return

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Answer:

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What is a buyer persona? an individual who pretends to be a customer to help a company test its offerings a detailed description
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3 0
3 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
ololo11 [35]

Answer:

Pine Street should sell finished bookcases.

Explanation:

                                  Differential analysis

                                 Sell unfinished  Process further  Net income

                                                                                        Increase (decrease)

Sale price per unit        58.09                    73.08                  14.99

<u>Cost per unit</u>

Variable                         37.97                     44.61                  -6.64

Fixed                              10.12                      10.12                      0

Total                              48.09                     54.73                  8.35

Net income per unit      10                         18.35                  8.35

So, the book cases should be sold after processed further.

7 0
3 years ago
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