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AleksAgata [21]
2 years ago
9

Initially, Stacy earns a salary of $300 per year and Virginia earns a salary of $200 per year. Stacy lends Virginia $100 for one

year at an annual interest rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of the loan. At the end of the year, Virginia makes good on the loan by paying Stacy $116. Consider an unanticipated decrease in the rate of inflation. The rise in prices and salaries turns out to be 2% over the course of the year rather than 12%. The nominal value of Stacy's salary after one year is
Business
1 answer:
lina2011 [118]2 years ago
7 0

Answer:

The answer is "$306 and $204".

Explanation:

Given value:

Stacy salary = $300

Virginia salary = $200

The nominal value is 2%

Calculating the Stacy salary = 300 \times \frac{2}{100}

                                              = 3 \times 2 \\\\ =6

\text{ Stacy salary = slaray+ percent value}

                    = \$ 300 + \$ 6\\\\= \$ 306 \\

Calculating the Virginia salary = 200 \times \frac{2}{100}

                                              = 2 \times 2 \\\\ =4

\text{ Virginia salary = slaray+ percent value}

                        = \$ 200 + \$ 4\\\\= \$ 204 \\

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nika2105 [10]

Answer:

The option that maximizes Maggie's taste index is 1 snack bar and 2 ice creams

Explanation:

<u>snack bar</u>                  <u>ice cream</u>

37 grams                   65 grams

120 calories              160 calories

5 grams of fat           10 grams of fat

Maggie wants to consume up to 450 calories and 25 grams of fat, but she needs at least 120 grams of dessert per day. Ice cream taste 95, snack bars 85.

  • maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)
  • 5X + 10Y ≤ 25 ⇒ CONSTRAINT 1
  • 120X + 160Y ≤ 450 ⇒ CONSTRAINT 2
  • 37X + 65Y ≥ 120 ⇒ CONSTRAINT 3
  • X ≥ 0 ⇒ CONSTRAINT 4
  • Y ≥ 0 ⇒ CONSTRAINT 5

maximum possible combinations following constraint 1, 4 AND 5:

  • option 1: 1 snack bar - 2 ice creams (5 + 20 = 25)
  • option 2: 2 snack bars - 1 ice cream (10 + 10 = 20)
  • option 3: 3 snack bars - 1 ice cream (15 + 10 = 25)

possible combinations following constraint 2:

  • option 1: 1 snack bar - 2 ice creams (120 + 320 = 440)
  • option 2: 2 snack bars - 1 ice cream (240 + 160 = 400)

possible combination following constraint 3:

  • option 1: 1 snack bar - 2 ice creams (37 + 130 = 167)
  • option 2: 2 snack bars - 1 ice cream (74 + 65 = 139)

since we only have two possibilities, we can calculate which one generates the highest taste index

maximize taste index = [85(37X) + 95(65Y)] / (37X + 65Y)

  • option 1: 1 snack bar - 2 ice creams = [85(37) + 95(130)] / (37 + 130) = (3,145 + 12,350) / 167 = 92.78
  • option 2: 2 snack bars - 1 ice cream = [85(74) + 95(65)] / (74 + 65) = (6,290 + 6,175) / 139 = 89.68

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It’s important in business today for all firms to work to cut out the middleman. Intermediaries represent costs that can be save
vivado [14]

Answer:

Yes: Middlemen represents costs

No: Middlemen could have exclusive access to customers

No: Cutting out middlemen will lead to unemployment on the long run

Explanation:

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A second consideration is that cutting off middlemen will as a result create unemployment for all those middlemen that will be cut off.

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Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the company
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Answer:

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Explanation:

For computing the cost of preferred stock, the following formula should be used which is shown below

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where,

Flotation cost = 1- rate

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= $9.50 ÷ ($102.50 × 0.96)

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The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.

Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%

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