So, the dollar price of the jeans is the nominal variable, and the relative price is the real variable. The relative price of the jeans have been adjusted to inflation. The dollar price hasn't been adjusted for inflation, hence why it is the nominal variable (not adjusted for inflation).
Answer:
Option C is correct.
<u>The required rate of return for Mercury Inc., assuming that investors expect a 5% rate of inflation in the future is 18%.</u>
Explanation:
Real risk free rate = 3%
Inflation Premium = 5%
Nominal risk free rate Rf = Real risk free rate + Inflation Premium = 3% + 5% = 8%
Market risk premium (Rm –Rf) = 5%
Beta = 2
As per CAPM, required rate of return = Rf + beta * (Rm – Rf) = 8% + 2 * 5% = 18%
Birthrate is the number of births while deaerate is the number of deaths
Answer:
C) $80,000
Explanation:
Since Rose uses the LIFO method for determining COGS, the 10,000 units sold should be recorded at $7.90 (purchase price 1/5).
10,000 units still remain in inventory (8,000 beginning + 2,000 last purchase). Using the LIFO costing method the inventory unit cost should be [(8,000 x $8.20) + (2,000 x $7.90)] / 10,000 = $8.14 per unit
If the replacement cost is $8 per unit, and Rose decides to use lower-of-cost-or-market rule, then she should use the lowest cost which is the replacement cost ($8 < $8.14).
So the ending inventory's total cost is $8 per unit x 10,000 units = $80,000
Answer:
The answer is option A)Personal selling refers to: A customer-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.
Explanation:
Personal selling involves a face to face approach encounter with customers. In advertising, Personal selling involves the use of marketers with great interpersonal and sales skills employed to promote a product offering in the field where they can interface one on one with customers for the purpose of generating sales.
This supports the definition of personal selling as a customer-directed flow of communications, often in a face-to-face encounter, designed to promote a product with the purpose of making a sale.