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3 years ago

A family with an income of 70,000 receives a raise of 2% in a year when inflation is 5%. Find the decrease in purchasing power.

Business

1 answer:

Vlad [161]3 years ago

8 0

Answer:

They make 3% less per year

Explanation:

I think this is what you're asking but don't quote me on it

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O'brien inc. has the following data: rrf = 5.00%; rpm = 6.00%; and b =+0.70. what is the firm's cost of equity from retained ear

algol13

The company's cost of equity is $0.92$ % of retained earnings according to the capm.

The cost of equity for a corporation is the amount that the market is willing to pay to own an asset and take on ownership risk. The two common methods for determining the cost of equity are the capital asset pricing model and dividend capitalization model. On the right side of the balance sheet, you can see a list of the company's debt and equity accounts. The cost of capital refers to the price a business must pay to finance its operations through debt, equity, or a mix of the two.

b = $0.70,$ rs = rRF + b(RPM), and rRF + b(RPM) = $5.00$ % RPM $6.00$ % were lent to us.

Learn more about cost of equity here

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1 year ago

Which of the following is least likely to be a factor in developing a sales forecast? a. Number of salespeople employed by the f

Usimov [2.4K]

Answer:

A. Number of sales people employed by the firm's major competitors.

Explanation:

A sales forecast is simply a process of evaluating future sales. The number of sales people employed by a firms' competitor is not a factor to consider in developing a sales forecast. It has no influence in the actualization of a definitive sales forecast.

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2 years ago

Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians

gulaghasi [49]

Answer:

Quantity will rise, and the effect on price is ambiguous.

Explanation:

Music compact discs are normal goods. There is a positive relationship between the demand for the normal goods and the income of the consumers.

If the compact disc players become cheaper to produce then as a result all the producers start producing music compact discs and this will increase the supply of music compact disc. This will shift the supply curve rightwards.

And if the income of the music lovers increases then as a result the demand for music compact discs increases. This will shift the demand curve rightwards.

Therefore, these changes will increase the equilibrium quantity and the impact on equilibrium price is ambiguous because that will be dependent upon the magnitude of the shift of supply and demand curve.

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3 years ago

The Minton Company has gathered the following information for a unit of its most popular product: Direct materials $ 7 Direct la

Blababa [14]

Answer: $14,500

Explanation:

Sales = 2,900 units × $19 per unit

= $55,100

Direct material = 2,900 units × $7

= $20,300

Direct labor = 2,900 units × $3

= $8,700

Variable Overhead = 2,900 units × 50% × 6

= $8,700

Variable shipping and other selling expense = 2,900 units × $1 per unit

= $2,900

Net profit from special order:

= Sales - Direct material - Direct labor - Variable Overhead - Variable shipping and other selling expense

= $55,100 - $20,300 - $8,700 - $8,700 - $2,900

= $14,500

Therefore, if the special order is accepted, Minton's operating profits will increase by $14,500.

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3 years ago

Why is honesty an important component of bargaining it is not you can use more marketing techniques to sell a product if you str

ser-zykov [4K]

If a person doesn't trust you then they will tell other people and the other people won't trust you

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3 years ago