Answer:
A. We should expect higher interest rates and lower stock prices.
Explanation:
Producer price index refers to the price that producers recieve for their products. When there is an increase in PPI it means producers are receiving more revenue.
Increased revenue will result in more money in circulation. To regulate the excess money the monetary authorities will increase interest rate to reduce borrowing and by extension money in the economy.
Because there is now a need to get more funds by the companies, they will lower share prices to make them attractive to prospective investors.
Answer:
the debit entry to Interest Expense is $463,145.52
Explanation:
The computation of the debit entry to Interest Expense is given below:
= Bonds carrying value × Market rate of interest
= $3,859,546 × 12%
= $463,145.52
Hence, the debit entry to Interest Expense is $463,145.52
We simply applied the above formula and the same is to be considered
Characteristics 4 and 5 would be typical of an industry that is in the start-up stage.
Explanation:
- Following characteristics would be typical of an industry that is in the start-up age :
- 4. The current penetration rate in the United States is 60% of households and will be difficult to increase.
- The households between $1 million and $2 million in net worth is given below :
- $1,000,000 in wealth is near the 88% in America.
- Around 15,117,804 are households that matched this bracket or more.
- 5 Manufacturers compete fiercely on the basis of price, and price wars within the industry are common.
- There are certain strategies which includes
- price matching,
- evaluating the competitors,
- product re-branding,
- creative advertising and marketing
Answer:
The answer is: The insurer should be guaranteed positive economic profits.
Explanation:
The insurer (or insurance company) like any other company in the world, is not 100% sure they will make a profit from a business transaction.
For example, a person that takes a life insurance policy for $1 million might die due to an accident, and the insurance company will lose money with that specific client.
Answer:
0.2 or 20%
Explanation:
The three possible outcomes, with respective probabilities and returns, as follows
Outcome 1: Probability (P) = 0.35, Return (R) = 0.20
Outcome 2: Probability = 0.25, Return = 0.36
Outcome 3: Probability = 0.40, Return = 0.10.
The expected return will be computed as follows.
Expected Return = 
= (0.35*0.20) + (0.25*0.36) + (0.40*0.10)
= 0.07 + 0.09 + 0.04
= 0.2
Therefore expected return = 0.2 or 20%
