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kumpel [21]
3 years ago
7

Pick the correct statement from below. Multiple Choice The risk-free rate represents the change in purchasing power. Any return

greater than the inflation rate represents the risk premium. Historical real rates of return must be positive. Nominal rates exceed real rates by the amount of the risk-free rate. The real rate must be less than the nominal rate given a positive rate of inflation.
Business
1 answer:
shutvik [7]3 years ago
7 0

Answer:

The real rate must be less than the nominal rate given a positive rate of inflation.

Explanation:

As we know that

nominal rate = real rate + inflation

Nominal rate of return is a total of real rate of return and the inflation rate

In the case when the inflation rate is positive so the real rate should be lowered by the nominal rate of return

Therefore the last option is correct

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You are planning to purchase the stock of Ted's Sheds Inc. and you expect it to pay a dividend of $3 in year 1, $4.25 in year 2
Yuri [45]

Answer:

I would pay up to 81.52 dollars for the share that way I will get a 12% return at least

Explanation:

We need to calcualte the present value of the cash flow of each year using the formula for present value of a lump sum:

      Dividends  Present Value

1st year     3.00 2.678571429 *1

2nd year     4.25 3.38807398  *2

3rd year 106.00* 75.44870627 *3

<em>Value of the share  at 12% discount rate 81.51535168</em>

*100 dollars from the sale plus 6 dollars of dividends

\frac{Dividend}{(1 + rate)^{time} } = PV  

*1

Div: 3.00

time: 1

rate: 0.12

\frac{3}{(1 + 0.12)^{1} } = PV  

PV  2.678571429

*2

Dividends 4.25

time  2.00

rate  0.12000

\frac{4.25}{(1 + 0.12)^{2} } = PV  

PV   3.3881

*3

Maturity  106.00

time  3.00

rate  0.12000

\frac{106}{(1 + 0.12)^{3} } = PV  

PV   75.4487

7 0
3 years ago
It is Micah's role at the company to plan, organize, and control the functions within the human resource department. Based on th
Nookie1986 [14]

Answer:

management

Explanation:

Management comprises planning, organizing, staffing, leading /directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. In for-profit work, the primary function of management is meeting the needs of various stakeholders of the organization, such as customers, debtors, and owners.Management is the act of engaging with an organization’s human talent and using the physical resources at a manager’s disposal to accomplish desired goals and objectives efficiently and effectively. Management comprises planning, organizing, staffing, leading, directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Management operates through various functions, often classified as planning, organizing, staffing, leading/directing, controlling/monitoring, and motivating. The organizing function creates the pattern of relationships among workers and makes optimal use of resources to enable the accomplishment of business plans and objectives.

4 0
3 years ago
Papa PePe's Pizza purchased a used pizza oven for $9785. The company makes a down payment of $1000 and agrees to 36 monthly paym
Mkey [24]

Answer:

$1,239.2

Explanation:

finance charge refer the cost of using credit funds. It is the total amount a borrower pays to lender on top of the amount borrowed.

In this case, the total amount the customer paid for the oven

The deposit $1000.00

Monthly installment; $278.45 x 36= $10,024.2

Total amount paid =$278.45 +$10,024.2

=11,024.2

finance charge =  total amount paid - cost of the item

= $11,024.2 - $9,785.

=$1,239.2

3 0
3 years ago
Communication can most usefully be understood as a(n) Multiple Choice
Papessa [141]

Answer:

A. Innate human ability.

Explanation:

Your question has already been answered. Here's the link.

https://brainly.in/question/39991159?msp_srt_exp=6

Hope this helps!

4 0
2 years ago
Read 2 more answers
The passage discusses a business fluctuation influenced by
sweet [91]
I think its b hope i helped 

6 0
4 years ago
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