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3 years ago

What do inflation rates measure?

Business

1 answer:

My name is Ann [436]3 years ago

6 0

Answer:

C. The speed with which general prices are rising

Explanation:

Inflation measures the rate at which the general prices of goods and services are increasing in an economy. During inflation, the purchasing power of a country's currency is eroded. Inflation means a selected basket of goods will cost more this period than it did in the previous season.

The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation. A moderate level of inflation is required to promote spending and sustain favorable economic growth.

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McCann Publishing has a target capital structure of 35% debt and 65% equity. This year's capital budget is $850,000 and it wants

levacccp [35]

Answer: $952500

Explanation: targeted equity ratio is 65% = 0.65

Capital budget = $850000

Dividend = net income - (target equity ratio × total budget)

400000 = N - (0.65 × 850000)

Make N the subject of formula

Net income N = $952,500

4 0

4 years ago

Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) T

inn [45]

Answer:

9.315%

Explanation:

The computation of WACC is shown below:-

But before that we need to do the following calculations

PV -$1,000

PMT 80

N 20

FV $1,000

Compute IY 8%

After tax cost of Debt = Before tax cost of debt × (1 - tax rate)

= 8% × (1 - 25%)

= 6%

According to the CAPM,

Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)

= 4.5% + (1.2 × 5.5%)

= 11.10%

Weight of Equity = 100% - 35%

= 65%

WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)

= (65% × 11.10) + (35% × 6)

= 9.315%

8 0

4 years ago

If the fed wants to _______ the money supply, it discourages bank loans.

scoray [572]

<span>This would be a way to lower the money supply. By discouraging bank loans, there becomes fewer overall dollars in the hands of the general public. Fewer dollars held by people overall equals a smaller overall money supply. Bank loans to the public would be a way of increasing the money supply, in the opposite instance.</span>

5 0

3 years ago

banc corp. trust is considering either a bankwide overhead rate or department overhead rates to allocate $272,000 of indirect co

valkas [14]

$96,000 would be the indirect costs allocated to the commercial department.

These include expenses linked to many projects and expenses unrelated to the project's actual construction. Examples of typical indirect project costs include payroll taxes, employee benefits, workers' compensation insurance, general liability insurance, and equipment fuel and maintenance.

indirect expenses are accounting, auditing, and legal fees, as well as business permits, office expenses, rent, supervisor salaries, telephone expense, and utilities. Indirect expenses may or may not be allocated.

Following is how the price per unit is calculated: Divide $272,000 by 17,000 direct labor hours to get $16.

17,000 direct work hours were contributed by both consumers and enterprises in total (11,000 + 6,000).

Currently, the indirect cost per unit is $96,000, or about 16,600 hours of commercial direct labor.

The amount of direct labor hours required to create one unit of a product is known as the direct labor hours. By dividing the total number of finished items by the total amount of direct labor hours required to produce them, the figure is obtained.

To learn more about DLH refer to:

https://brainly.in/question/13594332

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3 0

2 years ago

Kennedy’s alliance of progress program provided $25 billion in aid to countries in?

Annette [7]

President Kennedy aimed to provide economic assistance, and consolidate democracy and social justice in Latin America.

Kennedy proposed, via the corporation for international improvement and the Alliance for progress, both launched in 1961, to mortgage greater than $20 billion to Latin American nations that would sell democracy and adopt significant social reforms, specifically in making land possession possible for more numbers.

The Peace Corps, a program that despatched younger volunteers to foreign places to assist those in want, turned into probably one of the high-quality-acknowledged New Frontier programs.

Learn more about President Kennedy here: brainly.com/question/13721861

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3 0

2 years ago