The answer is B. He wanted to do the right thing, but the situation was very confusing.
Answer:
€4,883,000
Explanation:
The computation of cost of sales is shown below:-
Inventory = 35,000 ÷ €12
= 2,917 units
Weighted average cost of inventory
= (2,917 × €12) + (35,000 × €14)
= €35,004 + €490,000
= €525,004
So weighted average cost = €525,004 ÷ €40,833.33
= €12.85
So, cost of sales = weighted average cost × sold units
= €12.85 × 38,000
= €4,883,000
Answer:
13%
Explanation:
As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
11% = 7% + Beta × 6%
Beta = 1
now If the market risk premium increased to 6% so,
The required rate of return = 7% + 1 × 6%
= 13%
Therefore for computing the required rate of return we simply applied the above formula.
Answer:
$100 in bank A
$900 in bank B
Explanation:
Since the required reserve ratio is 10%, then bank A can lend up to 90% of the funds to bank B, and must keep the remaining 10%.
- bank A = $1,000 x 10% = $100
- bank B = $1,000 x 90% = $900
If bank B borrowed the money to another client, then they would be able to borrow $900 x 90% = $810, and they should keep $90 as reserves.
Answer:
E) It would not necessarily be considered high elsewhere.
Explanation:
The US inflation rate during 1979 was 11.26%, during 1980 it was 13.55%, and during 1981 it was 10.33%. These numbers may seem very high for American standards, but they aren't really high once you compare them to other nation's inflation rate.
For example, if we look at what is happening in two South American countries right now; Currently Venezuela is facing a hyperinflation measured by millions, and Argentina's current inflation rate is around 60%.
Back in the 1980s, hyperinflation rates were much more common. Argentina, Bolivia, Brazil, Mexico, Peru and Nicaragua, all suffered from hyperinflation (inflation rates in the 1,000s).
The US dollar is considered a very stable currency, that is why an inflation rate of around 10% was considered extremely high for American standards, but not so high compared to the rest of the world.