Answer: The consumer price index will increase, but the GDP deflator will not increase.
Explanation:CPI(Consumer p ice index) is a concept used in Macroeconomics to mean the weighted average of the prices of
A basket of consumer goods and services.
GDP(gross domestic product) Is the value of the entire goods and services rendered within an economy over a given period of time.
GDP Deflator determines the price changes of all goods and services produced within an country.
As the price of Italian shoes imported into the Unites States of America rises the CPI INCREASES BUT THE GDP DEFLATOR WILL NOT INCREASE.
Answer:
C $1,104
Explanation:
TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.
The principal value of the bond in case of TIPS is adjusted for yearly inflation.
Based on the above discussion the value of TIPS bond can be calculated using the below formula:
Value of bond at maturity=Principal amount (1+inflation rate)^5
=1,000(1+2%)^5
=1,104
So the answer is C $1,104
Answer: 21.63%
Explanation:
The firm's cost of equity capital will be calculated thus:
Market value of assets = $50000
Debt = $12500
Cost of debt = 7%
Unlevered cost of equity = 18%
Then, we'll calculate equity which will be calculated as:
= Market value of assets - Debt
= $50000 - $12500
= $37500
Then, the cost of equity capital will be:
= Unlevered cost of equity + [(Debt/equity) x (Unlevered cost of equity - Cost of debt)]
= 18% + [($12500/$37500) x (18% - 7%)]
= 18% + [0.33 x 11%]
= 18% + 3.63%
= 21.63%
Its a dude i know this for a fact if you get this rong itshouoldnt
Answer:
The answer is "96.11 per unit".
Explanation:
Formula:
Calculating the unit cost:
