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3 years ago

If the CPI is 123 in year 1 and 143 in year 2, what is the approximate percentage change in prices between the two years?

Business

1 answer:

padilas [110]3 years ago

3 0

Answer:

B. 16.3 percent

Explanation:

The consumer price index in year 1 = 123

The consumer price index in year 2 =143

Now we have given two years consumer price index and from this information, we are required to find the percentage change in the consumer price index. Below is the formula to find the percentage change.

Percentage change in CPI = (Year 2 CPI – Year 1 CPI) / Year 1 CPI

Percentage change in CPI = (143 – 123 ) / 123

Percentage change in CPI = 0.1626 or 16.3%

Thus, Option “b” 16.3 Percent is correct.

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The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Co

ale4655 [162]

Answer:

(a) the earnings per share = $3

(b) the price-earnings ratio = 8x

(d) the dividend yield = 1.04%

Explanation:

Common Stock Outstanding = 5,250,000/25 = 210,000 shares

Preferred Stock Outstanding = 6,000,000/200 = 30,000 shares

Preferred Stock Dividend per share = $4

(a) Earnings Per Share

EPS = Net Income - Preferred Dividend

Common Stock Outstanding

EPS = 750,000 - (30,000 * 4)

210,000

EPS = 630,000

210,000

EPS = $3

(b) Price-Earnings Ratio

Market Price = $24

EPS = $3

P/E ratio = Market Price

EPS

P/E ratio = 24/3

P/E ratio = 8x

(c) Dividends Per Share

DPS = Total Dividends

Common Stock Outstanding

DPS = 52,500/210,000

DPS = $0.25

(d) Dividend Yield

DY = Dividend Per Share

Price

DY = 0.25/24

DY = 1.04%

6 0

3 years ago

A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be

il63 [147K]

Solution:

Annual coupon payment of the bond is $80

At the beginning of the year, remaining maturity period is 2 years.

Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.

New price of the bond = present value of the final coupon payment + present value of the maturity amount.

New price of the bond = $\frac{80}{1+r} +\frac{1000}{1+r}$

where, r is the yield to maturity at the end of the year.

Substitute 0.06 for r in the above equation,

Therefore new price of the bond is = $\frac{80}{1+0.06} +\frac{1000}{1+0.06}$

= $\frac{1080}{1.06}$

= $ 1010.87

Calculating the rate of return of the bond as

$\text{rate of return}=\frac{\text{coupon+new price-old price}}{\text{initial price}}$

$=\frac{80+1018.87-1000}{1000}$

= 0.09887

Therefore, the rate of return on the bond is 9.887%

≈ 10 %

4 0

2 years ago

Getting merchandise floor-ready entailsA. distributing and dispatching.B. ticketing and marking.C. vertical supply chain wholesa

Katarina [22]

Answer:

B. ticketing and marking

Explanation:

Floor ready is the term used to refer to the merchandise which is ready to sale and that the merchandise is detailed with every description required.

That means it is ready with the size, quality, and quantity that is required to be marked.

Along with that it is even priced more properly and is already tagged with the label of description and price.

This all labeling and ticketing is basically done in the retail store before it is offered to the customer.

6 0

3 years ago

Describe the final step in the adjusting process. The final step is to determine the correct balance of an account. The final st

Ket [755]

Answer:

The Final Step is 'post to a trial balance so financial statements can be prepared'

Explanation:

The accounting cycle has, in most theory analysis, 8 steps that will serve to record and process all financial transactions of a company, beginning at the transactions itself and ending at resetting the balance so a new cycle can begin. The steps are:

1) The occurrence of Financial Transactions

2) The record of those transactions in the company journal

3) The summary of all journal’s transactions in the general ledger

4) The calculation of a total balance for all accounts

5) The corrections of error in balances by the bookkeeper

6) The posting of adjustments in all accounts

7) The manufacture of financial statements using the correct balances

8) The close of revenue and expense accounts to open a new cycle

8 0

2 years ago

Cost ConceptOn February 3, Clairemont Repair Service extended an offer of $360,000 for land that had been priced for sale at $40

guajiro [1.7K]

Answer:

The land should be recorded in Clairemont Repair Service’s records at $380,000

Explanation:

According to the historical cost principle, the recording of the fixed assets should be recorded at the purchase price or cost price which is to be shown in the assets side under the balance sheet.

So, according to the question, on February 28, the repair service accepted the seller's counteroffer which means that the land was purchased on February 28 for $380,0000. So, by $380,000 amount, the land would be recorded.

Other costs which are mentioned in the question is ignored.

7 0

3 years ago