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The price index was 150 in the first year, 142.5 in the second year, and 138.2 in the third year. The economy experienced:______

Maslowich

Answer:

The correct answer is:

5.0 percent deflation between the first and second years, and 3.0 percent deflation between the second and third years. (a)

Explanation:

to calculate the percentage deflation, we will simply calculate the percentage change in price between the years stated. This is calculated as follows:

% change = $\%\ change = \frac{P_2 - P_1}{P_1} \times 100\\where:\\P_1 = initial\ price\ index\\P_2 = New\ price\ index\\for\ first\ and\ second\ years\\\therefore \%\ change = \frac{142.5 - 150}{150} = \frac{-7.5}{150}= -0.05 \times 100 = -5\%\\$

Note that the negative sign shows a deflation.

if you use the same method for years two and three, you should get -3%, using P₁ as 142.5 and p₂ as 138.2. Hence option 'a' is correct.

7 0

3 years ago

During its first month of operations in March, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated

Alekssandra [29.7K]

Answer and Explanation:

The Preparation of classified balance sheet for Volz Cleaning, Inc., at the end of March is shown below:-

Assets

Current Assets:

Cash $27,000

($45,000 - $8,000 - $2,000 - $7,000 + $3,000 - $4,000)

Investment (short term) $4,000

($7,000 - $3,000)

Notes receivables $2,000

Total Current Assets $33,000

Long Term Non Current Assets:

Computer equipment $4,000

Delivery Truck $35,000

Total long term $39,000

Total assets $72,000

Liabilities

Notes payable $27,000

Total liabilities $27,000

Stockholder equity

Common Stock $6,000

Additional Paid in Capital $39,000

Total Stockholder's equity $45,000

Total Liabilities & Stockholder's

equity $72,000

6 0

3 years ago

Driver Products recently paid its annual dividend of $2, and reported an ROE of 15%. The firm pays out 50% of its earnings as di

iragen [17]

Answer:

$29.70

Explanation:

Retention ratio = 1 - payout ratio

= ( 1 -0.5 )

= 0.5

Growth rate, g = ROE × Retention ratio

= 0.15 × 0.5

= 0.075

= 7.5%

Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]

= 2.5% + 1.44 × (11% - 2.5%)

= 14.74%

Intrinsic value = $\frac{\textup{D1}}{\textup{(Required return-Growth rate)
}}$

= $\frac{\textup{2}\times(1+0.075)}{\textup{(0.1474-0.075)
}}$

= 29.69 ≈ $29.70

5 0

3 years ago

Cardinal Health bonds have an annual coupon rate of 3.4 percent and a par value of $1,000 and will mature in 7 years. If you req

Alex787 [66]

The answer is "$716.56", and the further calculation can be defined as follows:
Health care business, Cardinal Health Leading provider healthcare, and biopharmaceutical products and services that help pharmacists.
The healthcare providers impact on customer care whilst reducing costs, improving productivity, or increasing productivity.

Annual coupon to be paid $\bold{= \$1000 \times 3.4\%= \$1000 \times \frac{3.4}{100} = \$34}$

years = 7

Calculating the bond price:

$= \$1000 \times PVF(5\%, 7\ years) +\$34 \times PVAF(5\%, 7\ years) \\\\= \$1000 \times 0.71068 +\$34 \times 0.17282\\\\= \$710.68 + \$5.87588\\\\= \$716.55588\\\\= \$716.56\\\\$

So, the final answer is "$716.56".

Learn more:

brainly.com/question/15570099

5 0

3 years ago

Your car averages 28 miles per gallon (MPG). Your trip to work averages 14 miles. Gas costs 2.89 per gallon. What do you spend o

gogolik [260]

Answer:

57.8$

Explanation:

Here we know that:

- One trip to work averages 14 miles

- Therefore, one return trip home-work averages 14*2=28 miles

- You work 20 days per month

So, the average number of miles per month is:

$m=28\cdot 20 =560 mi$

Then, we also know that the car averages 28 miles per gallon; this means that the number of gallons consumed on average in 1 month is equal to the average number of miles (560) divided by 28:

$g=\frac{560 mi}{28 mi/gal}=20 gal$

So, 20 gallons per month.

Finally, we know that the cost of the gas is 2.89$/gallon. Therefore, the average total cost per month is equal to the average number of gallons per month (20) times the cost per gallon:

$cost = (20 gal)\cdot (\$2.89/gal)=\$57.8$

4 0

3 years ago