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3 years ago

3. Consider the following price indexes: 2 pts

Business

1 answer:

sergejj [24]3 years ago

6 0

Answer:

1. Which year is likely the base year?

The base year is likely to be 2018, because it has the lower consumer price index. This is because most economies show inflation (the gradual increase of the prices overtime within an economy) rather than deflation (the gradual decrease)

2. What is the inflation rate from 2018 to 2019?

Using the consumer price index (CPI) the inflation rate formula is:

Inflation rate = CPI year 2 - CPI year 1 / CPI year 1

in this case, the year 1 is our likely base year, 2018, and year 2 is 2019.

Now, we simply plug the amounts into the formula:

Inflation rate = 255.651 - 251.107 / 251.107 = 0.018 or 1.8%

So the inflation rate from 2018 to 2019 is 1.8%, a rather low number.

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Dividends-R-Us, Corp. is paying a dividend of $3 a share today. It is expected that the company will continue its policy of incr

leonid [27]

Answer:

Amount for each stock to be paid at maximum = $54

Explanation:

Using Dividend growth model, we have,

$P_0 = \frac{D_1}{K_e - g}$

Where $P_0$ = Expected price of share today

$D_1$ = Dividend to be paid at this year end

= $D_0 + g$

$K_e$ = Required return on investment

g = Growth rate

Therefore,

$D_1$ = = $3 + 8% = $3.24

$P_0 = \frac{3.24}{0.14-0.08}$

$P_0$ = $54

Therefore, current price for this share or sock to be paid = $54 per share.

5 0

3 years ago

f a tenant remains in possession of leased property after the expiration of the lease term, without paying rent and without the

icang [17]

A tenant remains in possession of the leased property after the expiration of the lease term, without paying rent and without the landlord's consent, the tenant's status is Holdover Tenancy

This is further explained below.

<h3>What is Holdover Tenancy?</h3>

Generally, A holdover tenant is a renter who continues to occupy a rental property after their original lease has expired but does not sign a new lease for the space.

In conclusion, Holdover tenancy refers to the situation in which a tenant continues to occupy a rented property after the original lease period has ended

despite the fact that the renter is not responsible for paying rent and does not have the permission of the landlord.

Read more about Holdover Tenancy

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5 0

2 years ago

Select the correct answer.

ra1l [238]

Answer:

ans is c three

level pyramid

5 0

3 years ago

Calendars are useful to track homework assignments.

mars1129 [50]

Answer:

true answers and please give me answer

8 0

3 years ago

Read 2 more answers

In 1895, the first Putting Green Championship was held. The winner’s prize money was $220. In 2016, the winner’s check was $1,46

ad-work [718]

Answer:

(i) 7.54%(Approx).

(ii) $8,995,138.42(Approx).

Explanation:

Given that,

Winner’s prize money = $220

In 2016,

Winner’s check = $1,460,000

We use the formula:

$A=P(1+\frac{r}{100} )^{n}$

Where ,

A=future value

P=present value

r=rate of interest

n=time period.

n = 2016 - 1895

= 121

(a)

$1,460,000=220(1+\frac{r}{100} )^{n}$

$(\frac{1,460,000}{220})^{\frac{1}{121} }=(1+\frac{r}{100})$

(1+r/100) = 1.075440035

r = (1.075440035 - 1) × 100

= 7.54%(Approx).

(b)

n = 2041 - 2016

= 25

$A=P(1+\frac{r}{100} )^{n}$

$A=1,460,000(1+0.075440035)^{25}$

= 1,460,000 × 6.161053698

= $8,995,138.42(Approx).

4 0

3 years ago