Answers
Based on the given costs at the end of each year, the price index for all given years are:
2006 = 100.2007 = 120.2008 = 132.What are the price indexes?This can be found by the formula:
= Total cost in current year / Total cost in base year x 100
2006 is the base year.
Price index in 2006:
= 1,575 / 1,575 x 100
= 100
Price index in 2007:
= 1,890 / 1,575 x 100
= 120
Price index in 2008:
= 2,079 / 1,575 x 100
= 132
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Related Questions
You are considering the purchase of real estate that will provide perpetual income that should average $50,000 per year. How much will you pay for the property if you believe its market risk is the same as the market portfolio’s? The T-bill rate is 3%, and the expected market return is 8.0%.
Answers
Explanation:
CAPM(Capital Asset Pricing Model) Formula:
We know the risk-free price, return on the market, so beta (as risk on the market is the same as risk in the portfolio, beta is one) so we are trying to plug all the values in order to achieve the expected return of this investment.
We already know that we will get annually, so use the perpetuity formula:
Consider the following scenario analysis:
Rate of Return
Scenario Probability Stocks Bonds
Recession 0.30 −6 % 15 %
Normal economy 0.60 18 % 8 %
Boom 0.10 26 % 5 %
a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?
multiple choice
No
Yes
b. Calculate the expected rate of return and standard deviation for each investment. (Do not round intermediate calculations. Enter your answers as a percent rounded to 1 decimal place.)
c. Which investment would you prefer?
Answers
Based on the scenario analysis on stocks and bonds, we know the following:
Treasury bonds will provide a higher return in a recession than in a boom. The expected return of Bonds is 9.8% and that of stocks is 11.6%. The standard deviation of Bonds is 9.24% and that of stock is 11.76%.What does the scenario analysis on Bonds and Stocks show?In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.
The expected return on bonds will be:
= ∑(Probability of Scenario x Returns in scenario)
= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)
= 9.8%
The expected return on stocks will be:
= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)
= 11.6%
Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.
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An example of a quantity restriction is
A.
price supports in agriculture.
B.
an import quota.
C.
the minimum wage.
D.
rent controls.
Answers
An example of a quantity restriction is an import quota. (Option B). See explanation for same below.
What is import quota?Import quotat is a kind of restriction that is used to control the maount of goods that is allowed into a country.
Sometimes it is used to restrict the quality of goods whose consumption the government wants to discourage.
Hence, it is correct to state that an example of a quantity restriction is an import quota. (Option B).
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Dynamic Industries paid a dividend of $1.65 on its common stock yesterday. The dividends of Wallace Industries are expected to grow at 9% per year indefinitely. If the risk-free rate is 3% and investors' risk premium on this stock is 8%, estimate the value of Wallace Industries stock 2 years from now.
Answers
For dynamic Industries paid a dividend of $1.65 on its common stock yesterday, the value of Wallace Industries stock 2 years from now is mathematically given as
SV= 106.84
What is the value of stock in 2 years?Generally, the equation for the rate of return is mathematically given as
Ke = Rf + risk premium
Therefore
Ke= 3% + 8%
Ke=11%
Hence
D3=Do*(1+g)^3
D3=1.65 x (1+0.09)^3
Do= 2.137
In conclusion, the value of stock in 2 years is
SV= D3/ (Ke-g)
Therefore
SV= 2.137/(0.11-0.09
SV= 106.84
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Free Internet?
Everyone should have free Internet access to education, news, jobs, and more.
The graph plots education and news on the x-axis and other goods and services on the y-axis.
Draw the economy's PPF before the Internet and label it PPF0.
Draw the PPF after the arrival of the Internet if the effect on education and news is greater than on other goods and services. Label it PPF1.
Answers
Answer:
graph below
PPF shifted rightward, but shift on education and News is higher because effects of Internet is higher in Education and News
Explanation:
With the Internet, more education and news and more other goods and services can be produced. The production of other goods and services increases by less than the increase in education and news when all resources are used. The PPF shifts outward.
If Depressants such as alcohol, ___________and sedatives affect the central nervous system by slowing down or depressing reflexes and coordination.you are experiencing any drug __________, don't drive.
Answers
Answer:
The answers are in the image for the first one
Explanation:
hope this helps!
After Luke tries to understand Wang-Li’s family situation, Wang-Li shares concerns about his ability to complete his work responsibilities. Then, Luke asks questions and listens carefully to further understand Wang-Li’s worries about the work. Luke learns that Wang-Li is especially worried because his family has invested so much into his career success. Which element of EQ is most displayed in this case?
Answers
Answer:
Empathy
Explanation:
There are two definitions I would use to describe empathy as:
1. The psychological identification with or vicarious experiencing of the feelings, thoughts, or attitudes of one another
2. The imaginative ascribing to an object, as an natural object or work of art, feelings or attitudes present in oneself
Luke was being empathetic when he tried to understand Wang-li's family situation with his work. To explain better, empathy can be shown by listening and understanding.
Cecilia has studied economics and knows about the value and investment potential of diamonds. The price of
diamonds has recently decreased, and a new
necklace while the prices are lower.
diamond mine has opened nearby. Cecilia decides to buy a diamond
How did Cecilia's knowledge of economics help her make a savvy commodity purchase?
• She knew that diamonds are popular and in high demand.
O She knew that diamonds are
a nonrenewable resource, making them scarce.
O She knew that the cost of diamonds depends only on the demand.
She
knew that the purchase of diamonds will satisfy wants and needs.
Answers
Cecilia knew that diamonds are popular and in high demand, hence option A is the correct answer.
The economics of Value and Investment.The definition of value investing is the ability to identify a commodity of a good that has the potential to sell at a higher price value compared to the amount they are currently trading at.
In summary, it involves buying at a lower price and selling at a higher price.
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Answer:
A
Explanation:
what are the types of outsurance company
Answers
The main type of Insurance company includes:
General insurance companyLife insurance companyReinsurance companyWhat is the role of Insurance company?These are financial institution that provide insurance covers to intending policyholders.
Therefore, the main type of Insurance company includes general insurance company, Life insurance company and Reinsurance company.
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Previously, an organization reported that teenagers spent 4.5 hours per week, on average, on the phone. The organization thinks that, currently, the mean is higher. Fifteen randomly chosen teenagers were asked how many hours per week they spend on the phone. The sample mean was 4.75 hours with a sample standard deviation of 2.0. Conduct a hypothesis test.
Answers
The statement is true about that the average time spend by the teenagers spent 4.5 hours per week as it is concluded from the hypothesis test.
What is hypothesis test?Hypothesis test is the test evaluation of the assumption test like in the survey parameters, hypothesis test is different in every case it depends upon the data and the reason of the analysis, it is tested by using the sample data.
Thus, the statement is true.
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Question 7 of 10
The Better Business Bureau maintains business profiles weighing:
A. the number of legal actions against the number of positive online
reviews a company receives.
OB. the number of stars and reviews a company receives online.
C. the number of unresolved complaints and legal actions against a
company.
OD. the number of employees and employee compensation in a
company
Answers
The Better Business Bureau maintains business profiles weighing by B. the number of stars and reviews a company receives online.
What is Better Business Bureau?It should be noted that the Better Business Bureau builds a foundation of trust for the employee and the consumers to count on.
Here, the Better Business Bureau maintains business profiles weighing by reviewing the number of stars and reviews a company receives online.
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what role should foreign expansion play in Starbucks' strategy?
Answers
Answer:
There are three roles that should come into play: Subsidiaries, joint ventures, and licensing. The main role that should be used is joint ventures.
Answer:
Foreign expansion will ensure that global expansions don't dilute their culture, meaning they can lead the company similar to how a small-business is lead.
Find the sales tax. Total selling price: $2,520. Florida sales tax rate: 6 percent. Gainesville sales tax rate: 1 percent. Find the state tax city and city tax.
Answers
The state tax city and city tax based on the information will be $151.20 and $25.20 respectively.
How to calculate the tax?The sales tax based on the information given will be:
= 6% × $2520
= 0.06 × $2520
= $151.20
The city tax will be:
= 1% × $2520
= $25.20
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Which form of business ownership is an ideal way to test new business ideas?
Answers
Sole proprietorship is a business ownership that ideal way to test new business ideas
What are new business idea?This are ideas that have not been existing before, which an individual uses to improve on his or her business.
It could be a collective idea or an individual idea.
Therefore,
Sole proprietorship is a business ownership that ideal way to test new business ideas
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The supply and demand curve is a tool used by entrepreneurs.
True or false
Answers
Answer:
TRUE
Explanation:
Explain how scarcity relates to the decision you made as the president of the United States.
Answers
Because scarcity increases negative emotions, it ends up affecting one's decisions. Socioeconomic scarcity can be caused by depression or anxiety. A president would be making decisions based on the negativity. But in the U.S.A the government deals with scarcity by implementing quotas on how much people can buy.
Hope this helps,
ROR
What results when work seeps into non-work time?
Answers
burnouts im guessing
Drag the tiles to the correct boxes to complete the pairs. For each scenario match it to the correct factor describing the purpose for holding money. When price levels rise, people hold onto cash. When interest rates are low, people forgo interest income. When aggregate income is high, people hold cash to buy goods that are plentiful and cheap. When interest rates are low, people speculate that they will soon increase. Andy decided to hold his money in cash, as he did not earn sufficient money as income from interest. arrowRight Ben is a consumer and decides not to purchase luxury items because they are too expensive. arrowRight Chad thinks it to be a good opportunity to buy the products from the market as the supply has increased. arrowRight Daphne is holding onto her money as she feels that the interest rate will go up soon. arrowRight
Answers
The purpose for holding money in economic in classified into:
transactional motiveprecautionary motivespeculative motiveThe Drop-downs includes:When price levels rise, people hold onto cash. - Speculative motiveWhen interest rates are low, people forgo interest income - Speculative motiveWhen aggregate income is high, people hold cash to buy goods that are plentiful and cheap - Transactional motive.When interest rates are low, people speculate that they will soon increase - Speculative motiveAndy decided to hold his money in cash, as he did not earn sufficient money as income from interest. - Speculative motiveBen is a consumer and decides not to purchase luxury items because they are too expensive - Speculative motiveChad thinks it to be a good opportunity to buy the products from the market as the supply has increased. - Transactional motiveDaphne is holding onto her money as she feels that the interest rate will go up soon - Speculative motiveRead more about holding motives
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Pretty lady cosmetic products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Assume sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts
Answers
Based on the sales, cost of goods, and days on average, the average investment of Pretty Lady Cosmetics is:
Average Receivables - $115,068.50.Average Inventories - $36,986.30.Average payables - $96,630.14.Net financing needs - $53,424.66.What are the average investments for Pretty Lady Cosmetic Products?The Average Receivables are:
40 days = Average AR ÷ (1,200,000/365)
= $115,068.50
The Average Inventories:
15 days = Average inventory ÷ COGS per day
15 = Average inventory ÷ (900,000 / 365)
= $36,986.30
The Average payables:
40 days = Average payables ÷ COGS per day
40 = Average payables ÷ (900,000 / 365)
Average payables = $98,630.14
Net financing needs:
= Average Inventories + Average Receivables - Average payables
= 115,068.50 + 36,986.30 - 98,630.14
= $53,424.66
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list jobs that hire 14 years olds in harrisburg pa
Answers
Answer:
Macdonald'sExplanation:
Macdonald's hires 14-15 year old's after school and on weekends
What trigonometric expression can be used to find the value of x? Replace a and b with the correct values.
A triangle with base side labeled 12 and vertical leg labeled x. Angle at top vertex is labeled 25 degrees. Angle at right vertex is marked right angle
Answers
The trigonometric expression that can be used to find the value of x is tan(x) = 12/x
How to determine the trigonometric expression?From the question, we have the following parameters:
Vertical Leg = xBase length = 12Angle at the vertical side = 25 degreesThe measure of x is then calculated using the following tangent ratio
tan(x) = Base length/Vertical leg
Substitute known values
tan(x) = 12/x
Hence, the trigonometric expression that can be used to find the value of x is tan(x) = 12/x
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Recommend ways in which TQM can reduce the cost of quality
Answers
Answer:
You can reduce the cost of quality through prevention efforts, improving worker training, and using quality management software that streamlines your quality workflow.
Please mark me as brainliest if this helped!
Why do people donate to charitable organizations? Choose three answers.
to do what is right
to support a cause
to develop their skills
to earn college credit
to spend time with friends
Answers
To support a cause do people donate to charitable organizations. Hence, option B is correct.
What are charitable organizations?sum factor Productivity is a gauge of an economy's or business's level of efficiency. An equation that generates a number serves as the foundation for the measurement itself. The goal of TFP is to evaluate how new technology, improved processes, and improved education and training will affect overall productivity.
An economy may create and consume more goods and services for the same amount of effort when productivity is growing. Individuals, corporate executives, and analysts value productivity.
Physical productivity growth drives up the value of labor, which in turn drives up pay. Employers look for schooling and on-the-job training because of this.
Thus, option B is correct.
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Which statement about free on-line translation is true?
A: You are allowed to use free on-line transition software at your discretion
B: You are only allowed to use free on-line translation software if it is for a short, simple project
C: Bon Secours Mercy Health's policy is to never use free on-line translation software
Answers
The statement about free on-line translation that is true is that C. Bon Secours Mercy Health's policy is to never use free on-line translation software.
What is translation?It should be noted that translation simply means changing the form of a language to another form.
In this case, the statement about free on-line translation that is true is that Bon Secours Mercy Health's policy is to never use free on-line translation software.
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explain two strategy that can be used to mitigate against this economic challenge
Answers
Answer:
solo 1 :(
Explanation:Esto depende de las circunstancias de cada país, pero incluyen aplazar el pago de impuestos, otorgar subsidios salariales y transferencias monetarias a los grupos más vulnerables; ampliar el seguro de desempleo y la asistencia social, y ajustar temporalmente las garantías de crédito y las condiciones de los préstamos
Creative and innovative
Answers
A creative innovation is bringing about something unique and different.
What is creativity?Creativity is the ability to imagine something unique or new that have not been in existence.
It could also be a modification to what have been existing before.
Therefore, A creative innovation is bringing about something unique and different.
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Why does an excise tax on gasoline exist?
Answers
When working with a leader who is lack of leader integrity, the follower is less likely _______.
look for other job opportunities
volunteer to extra work assignments
displace aggression toward coworkers
receive mistreatments
Answers
When working with a leader who is lack of leader integrity, the follower is less likely to B. volunteer to extra work assignments.
Who is a leader?It should be noted that a leader simply means an individual who guides others and oversees their activities to achieve a particular goal.
In this case, when working with a leader who is lack of leader integrity, the follower is less likely to volunteer to extra work assignments
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You are offered Birr 1,000 today, Birr 10,000 in 12 years, or Birr 25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?
Answers
Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.
Which offer should you pick?You should pick the offer with the highest present value.
Offer 1 present value:
= Birr 1,000
Offer 2 present value:
= 10,000 / (1 + 11%)²
= Birr 2,858
Offer 3 present value:
= 25,000 / (1 + 11%)³
= Birr 1,840
In conclusion, option 2 has the highest present value and so should be picked.
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Problem solving is defined as
Answers
Answer:
Problem solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution