1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Amanda [17]
2 years ago
13

What happens over time to the real cost of purchasing a home, if the mortgage payments are fixed in nominal terms and inflation

is in existence? (A) The real cost is constant. (B) The real cost is increasing. (C) The real cost is decreasing. (D) The price index must be known to answer this question.
Business
1 answer:
Sauron [17]2 years ago
4 0

Answer:

(C) The real cost is decreasing.

Explanation:

1 + real rate = (1 + nominal rate)/(1+ inflation)

So, with existence of inflation, real rate cost will be decreasing after each period.  After each period, it will be found out by dividing with inflation rate in the way shown above and added multiplicatively.

You might be interested in
How to find users you wanna add
icang [17]

<em>tbh there's no search thing to find users </em>

Hope this helped you- have a good day bro cya)

5 0
3 years ago
Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o
vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0
3 years ago
Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate
Strike441 [17]

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

5 0
2 years ago
Suppose the price of gasoline decreases from $4.20 to $2.00, and in response quantity demanded increases from 10600 to 11200. Us
Tems11 [23]

Answer:

0.079

Explanation:

Price elasticity of demand using midpoint formula can be calculated as follows

Formula

Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)

Calculation

Elasticity of demand = (600/10,900)/(-2.1/3.05)

Elasticity of demand =-0.055 / -0.688

Elasticity of demand =-0.079

working

Change in price (2-4.1) = -2.1  

Average price (2+4.1)/2=3.05

Change in quantity (11,200-10600) = 600

average quantity (11,200+10,600)/2 = 10,900

 

The elasticity of demand is inelastic as the elasticity is below 1.

4 0
3 years ago
Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, in¬cluding extracting silver
GenaCL600 [577]

Answer:

C. life estate

Explanation:

A life estate is an estate interest in land that lasts for the life time of the life tenant. The holder of a life estate has a full right to possess the property during their life. A life estate is restrictive in that it prevents the beneficiary from selling the property that produces the income before the beneficiary's death. But the estate cannot continue beyond the life of the beneficiary.  A major benefit of a life estate deed is that it can be used to pass property upon the life tenant's death without it being part of the life tenant’s estate.  

8 0
3 years ago
Other questions:
  • In bst, modeling will have the greatest influence if it occurs​:
    8·1 answer
  • Kelsie told you her goal is to be one of the best overall programmers in the world. She​ doesn't care who she works​ for, or wha
    9·1 answer
  • structural changes must an organization undertake to switch from a product to a customer orientation?
    14·1 answer
  • Writing in the new york times on the technology boom of the late​ 1990s, michael lewis​ argues, 'the sad​ truth, for​ investors,
    14·1 answer
  • Given the following data: Average operating assets $ 1,372,000 Total liabilities $ 144,060 Sales $ 1,029,000 Contribution margin
    14·1 answer
  • You are the PR officer of a major MNE in the chemical industry. The national press in your home country alleges that your compan
    10·1 answer
  • Dawn Manufacturing’s records show a journal entry was made debiting Work in Process Inventory and crediting Raw Materials Invent
    7·1 answer
  • Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump
    12·1 answer
  • On July 1, 20X8, Pair Logic Corporation acquires 75 percent of Systems Inc. common stock for its underlying book value. At the t
    7·1 answer
  • The third step in the organization development process is ______
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!