Answer:
1. Adjustments of or changes in price are not smooth or synchronized.
2. Inflation rarely have impact on the prices of inputs.
3. The concentration of sellers is more on nominal prices of goods than real prices.
Explanation:
Inflation can be described as a sustained increase in the general price level of commodities within a country over a period of time.
The following are the reasons inflation in the real world result in shortages and surpluses:
1. Adjustmensts of or changes in price are not smooth or synchronized.
2. Inflation rarely have impact on the prices of inputs.
3. The concentration of sellers is more on nominal prices of goods than real prices.
The most significant difference between leaders and assembly line workers is the "Power".
The formal leaders have a formal power within the framework or system of an organization where they can influence others to work in the interests of the specific organization as opposed to assembly line workers, they lack this.
Answer: 12.29%
Explanation:
Municipal bonds are tax exempt and so are attractive for this reason. If John is to be indifferent between the two, the corporate bond would have to offer a return that when adjusted for tax, will give the same return as the municipal bond.
Assume that return is x;
x * ( 1 - 17%) = 10.2%
0.83x = 10.2%
x = 10.2%/0.83
x = 12.29%
Answer:
$2,375,000
Explanation:
Retained Earning is the accumulated balance of all the prior year's income / losses after paying all the dividend. This balance can be used for the dividend payment or reinvestment in the business.
Balance of Retained Earning = $500,000
Dividend Payment = 25% x $500,000 = $125,000
Additions to Retained Earning = $500,000 - $125,000 = $375,000
New balance of Retained Earning = $2,000,000 + $375,000 = $2,375,000
