The real interest rate is simply nominal interest rate
less the inflation rate. In equation form this is equivalent to:
Real interest rate = Nominal rate – Inflation Rate
Real interest rate = 9% - 4%
Real interest rate = 5%
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Answer:
the total contribution margin is $245,700
Explanation:
The computation of the total contribution margin in the case when the sales volume rise by 40% is shown below:
Since the sales volume is rise so the contribution margin is also rise by 40%
Therefore the total contribution margin would be
= Contribution margin × (1 + increased percentage)
= $175,500 × (1 + 0.40)
= $175,500 × 1.40
= $245,700
Hence, the total contribution margin is $245,700
Answer:
B. Debit cash $27,500 ; Credit common stock $27,500
Explanation:
The journal entry to record the transaction is;
Cash account Dr $27,500
(2,500 shares × $11)
To Common stock account Cr $27,500
Cash is an asset hence debited because it decreases as it was used to pay for bills while common stock is credited because it increases shareholder's equity.
Strategists have three options at their disposal to drive firm growth: organic growth through internal development, or external growth through alliances or acquisition. In this article, HP’s CEO explicitly states that HP’s strategic path forward includes organic growth through internal development, specifically <span>through research and development.
(Build) I hope this helps.</span>
Answer:
-28.1%
Explanation:
Calculation for what would a 30% loss next year be outside the 95% confidence interval for the portfolio
The standard deviation of 95% confident will be 2
The first step is to find the Upper tail using this formula
Upper tail= Average return percentage +(Standard deviation of 95% confident *Standard deviation of its returns)
Let plug in the formula
Upper tail=0.113+(2*0.197)
Upper tail =0.113+0.394
Upper tail=0.507*100
Upper tail =50.7%
Second step is to find the Lower tail using this formula
Lower tail=Average return percentage -(Standard deviation of 95% confident *Standard deviation of its returns)
Let plug in the formula
Upper tail=0.113-(2*0.197)
Upper tail =0.113-0.394
Upper tail=-0.281*100
Upper tail =28.1%
Based on the above calculation the lower tail was -28.1% which means that it wouldn't in any way loss more than the 30% of it value next year outside the 95% confidence interval for the portfolio
