Answer:
c. it makes prices rise
Explanation:
Inflation describes a situation where there is a general increase in prices in the country. Inflation is directly linked to economic growth. A high growth rate results in high inflation.
Inflation causes prices to rise, reducing the purchasing power of money. A reduction in purchasing power means a unit of money will buy fewer items than it did previously. The government puts in measures to counter inflation to stabilize prices and prevent erosion of purchasing power.
Low inflation indicates slow economic growth, low employment, and a reduction in prices.
Answer:
1. Commercial banks
2. Life insurance companies
3. Mutual funds
Explanation:
commercial banks
The commercial bank is a financial institution that accepts deposits and offer other services such as giving loans and other basic financial services to both individuals and organisations.
Life insurance companies
The life insurance companies are financial institutions that provide lump sums otherwise known as death benefits to beneficiaries of their policy holders upon their demise, provided that premium is paid on regular basis.
Mutual fund
A Mutual Fund is an investment vehicle made up of a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund's capital and attempt to produce capital gains and income for the investors.
One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.
Answer:
The total amount of past-due accounts receivable that were written off as uncollectible during the year were: $17,300
Explanation:
The amount of past-due accounts receivable that were written off as uncollectible during the year are calculated by following formula:
Past-due accounts receivable that were written off as uncollectible = The Allowance for Bad Debts account had a balance at the beginning of the year + Bad debts expense was recognized - The Allowance for Bad Debts account had a balance at the end of the year = $8,500 + $16,000 - $7,200 = $17,300
Answer: A. She believes the company has become riskier, and therefore increases her required rate of return for the stock.
Explanation:
The formula for the Constant dividend growth model of valuing stock is:
<em>= Next dividend / (Required return - growth rate)</em>
From the formula above, one can tell that if the required return is higher, it would result in a lower value for stock because it would divide the numerator more.
If the analyst believes that the company is riskier and increases the required return, the value would therefore reduce if other measures are kept constant.
Answer:
Option (d) is correct.
Explanation:
Given that,
Sales = $ 413,000
Cost of goods sold (all variable) = $ 169,100
Total variable selling expense = $ 20,700
Total fixed selling expense = $ 17,900
Total variable administrative expense = $ 13,100
Total fixed administrative expense = $ 30,400
Gross margin:
= Sales - Cost of goods sold
= $ 413,000 - $ 169,100
= $243,900
