20 points, 1 question , some reading

What does the quantity theory speculate about the cause of inflation?

Gala2k [10]

Well the quantity theory is "The hypothesis that changes in prices correspond to changes in the monetary supply" so when inflation happens the price will increase but when that happens the purchases and the value of money will decrease so will its demand. That's the speculation that the prices will not correspond to the monetary supply

5 0

3 years ago

Are real people answering these questions? Do u get paid?

Yuki888 [10]

Answer:

Yes real people answer these questions. No, at least I don't get paid. (although that would be awesome!!!)

4 0

3 years ago

The following events occurred for Favata Company: a. Received $10,000 cash from owners and issued stock to them. b. Borrowed $7,

Marina86 [1]

Answer:

(a)

Increase in Cash of $10,000 and Increase in Common Stock account of $10,000

Asset increases by $10,000; Owner's equity increases by $10,000. Accounting equation remains in balance.

(b)

Increase in Cash of $7,000 and Increase in Short-term Note Payable account of $7,000

Asset increases by $7,000; Liability increases by $7,000. Accounting equation remains in balance.

(c)

Increase in Fixed Asset of $800 and Increase in Account Payable account of $800

Asset increases by $800; Liability increases by $800. Accounting equation remains in balance.

(d)

Increase in Fixed Asset of $12,000, Decrease in Cash of $1,000 and Increase in Long-term Note Payable account of $11,000

Asset increases by $11,000; Liability increases by $11,000. Accounting equation remains in balance.

(e)

Increase in Fixed asset of $3,000, Decrease in Cash of $1,000 and Increase in Account Payable account of $2,000

Asset increases by $2,000; Liability increases by $2,000. Accounting equation remains in balance.

Explanation:

Explanation is given in Answer part

6 0

3 years ago

A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do

natali 33 [55]

Answer:

The expected price of the stock is $122.03

Explanation:

To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.

The required rate of return is calculated as,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate
rM is the return on market

r = 0.05 + 1 * (0.14 - 0.05)

r = 0.14

We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,

P0 = D1 / (r - g)

115 = 9 / (0.14 - g)

115 * (0.14 - g) = 9

16.1 - 115g = 9

16.1 - 9 = 115g

7.1 / 115 = g

g = 0.0617 or 6.17%

Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.

P1 = 9 * (1+0.0617) / (0.14 - 0.0617)

P1 = $122.03

4 0

3 years ago

The citizens of France, Belgium, and Finland are upset by a recent trade law enacted in the European Union which they feel negat

BigorU [14]

Answer:

The European Parliament to resolve their concerns.

Explanation:

The European Parliament bis the legislative section of the European Union. The European Parliament is made up of 705 members and is the 2nd largest parliament in the world.

When there is dispute with regards to EU laws the European Parliament is the body that resolves it. They help implement laws enacted by the European commission. They can amend or reject a legislature, and they also make proposal for legislation.

So citizens of France, Belgium, and Finland will approach the European Parliament when they are upset by a recent trade law enacted in the European Union which they feel negatively impacts their respective economies.

3 0

3 years ago

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