Inflation means- A general increase in prices and fall in the purchasing value of money.
So if you think about the question and the definition, what answer involves the money going down and or up significantly?
The answer would be,
B, Producers raise prices to meet HIGHER cost.
Hope this helps :)
Answer:
C. 1.34
Explanation:
Lindley Corp.'s stock price at the end of last year was $33.50, and its book value per share was $25.00. What was its market/book ratio?
To calculate the ratio:
stock price at the end of last year was $33.50 divided by value per share of $25.00
= 33.50/25.0
= 1.34
Answer:
Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.
The goods which are more in demand and on which consumers can afford to spend more, are produced in larger quantity than those goods or services which have lower demand. The price of various factors of production including technology helps to decide production techniques or methods of production. Rational producer intends to use those factors or techniques which has relatively lower price in the market.
Factor earnings received by the employers of factors of production decides spending capacity of the people. This helps producers to identify the consumers for whom goods could be produced in larger or smaller quantities. Price mechanism works well only if competition exists and natural flow of demand and supply of goods is not disturbed artificially.
Explanation:
Answer:
Beta= 1.26
Explanation:
<u>First, we will calculate the proportion of the portfolio of each security:</u>
Security A= 600/1,000= 0.6
Security B= 400/1,000= 0.4
<u>Now, the beta of the portfolio:</u>
Beta= (proportion of investment A*beta A) + (proportion of investment B*beta B)
Beta= (0.6*1.5) + (0.4*0.9)
Beta= 1.26
Answer: 28.6%
Explanation:
The return on the total asset of a firm will be calculated as the net income divided by the total asset and this will be:
=Net income / Total assets
=50,000/175,000
=28.6%
Therefore, return on total asset is 28.6%
