Answer:
Current Ratio
Liquid Ratio
Definition
The Current Ratio is the ratio between the Current Assets and the Current Liabilities of a company.
The Liquid Ratio is the ratio between the Liquid Assets and the Current Liabilities of a company.
Purpose
The Current Ratio helps the firm assess its capability to meet any short-term obligations that may arise while conducting business.
The Liquid Ratio helps a firm assess its capability to meet any urgent requirements for cash that may arise while conducting business.
Current Assets
The Current Ratio includes all the Current Assets of the business.
The Liquid Ratio includes only those Current Assets that the firm can liquidate to cash within the next ninety days.
Inventory
The Current Ratio includes the inventory stock of a firm.
The Liquid Ratio excludes the inventory stock of a firm.
Ideal Ratio
Although anything more than 1 is the ideal scenario for a company, a Current Ratio of 2:1 is preferable.
The ideal Liquid Ratio for a company is more than 1.
Approach for Paying Debt
The Current Ratio is a much more relaxed method of finding out whether a company can repay its creditors in case of an emergency.
The Liquid Ratio is a much more stringent method of finding out whether a company can repay its creditors in case of an emergency.
Comparison
The Current Ratio will be naturally higher for a company that has a higher stock of inventory.
The Quick Ratio will be naturally lower for a company that has a higher stock of inventory.
what would be the most important factors to consider for the network channel design
The most important factors to consider for the network channel design would be network resilience and redundancy; software and hardware standards; and integrated security mechanisms.
There are four crucial factors in network design that you must take into account if you want a network that is dependable, secure, and efficient. Solid network architecture will be more durable and provide overall higher performance. The ideal platform for all the apps you want to utilize is provided by effective networks, which operate swiftly and effectively.
Network design is the process of organizing and putting into place a computer network architecture. The majority of the time, network designers, engineers, IT administrators, and other relevant staff members do network design. It is carried out prior to the installation of a network infrastructure.
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Describe the impact of the COVID-19 pandemic on the PESTE environment/s and on
The accommodation industry
The COVID-19 situation is mostly having a severe impact on service-oriented industries like the hospitality sector.
Describe the COVID-19 pandemic's effects on the PESTEL settings.The current COVID-19 epidemic has also raised concerns about the state of the world's healthcare systems. The COVID-19 outbreak has affected more than 48 million people worldwide, and roughly 1.2 million people have already died as a result (Health Bulletin, WHO, 06th Nov 2020). Therefore, health emergencies have placed a particularly heavy load on daily tasks and commercial enterprises.
Dimensions of sustainable HCWM using PESTEL
In this study, the microenvironment surrounding the COVID-19 pandemic's sustainable HCWM has been examined from six key perspectives: political, economic, social, technological, environmental, and legal.
Political aspects- Political interventions are necessary through the regulatory authority to establish and oversee the constitutional framework for managing the HCW during the COVID-19 epidemic.
Financial aspects- As part of the economic sustainability of HCWM, the current study has found the following factors: I Government investment policies during the COVID-19 outbreak; ii) Relaxed taxation during disease outbreaks; and iii) HCW disposal/treatment expenses.
Social aspects- The following sustainable HCWM dimensions have been taken into account in the current study to ensure social well-being during the COVID-19 outbreak: I Community displacements and disturbances during the COVID-19 outbreak; ii) Social awareness about infectious HCW; and iii) Compensation for the local community.
Technology-related aspects- During the COVID-19 outbreak, the following technological aspects were taken into account for sustainable HCWM: I cutting-edge incineration technology to treat infectious HCW; ii) tracking-based supply chain (collection, storage, and transportation) of HCW; and iii) routine contact point sanitization.
Aspects of the environment- The following aspects of a sustainable environment have been taken into consideration in this study for managing HCW during the COVID-19 outbreak: I Modified environmental policy for containing the outbreak; ii) Effluents and emissions management at treatment facilities.
Legal measurements- To ensure the sustainability of the HCWM system during the COVID-19 outbreak, the current study has taken into account the following legal aspects: I design a unique environmental policy for COVID-19 hospitals, and ii) comply with environmental legislation.
Give examples of how the lodging sector has been affected by the COVID-19 outbreak.The hotel industry is among the most severely impacted by COVID-19, which has had an impact on every industry worldwide. According to our research, it might take until 2023 or later for recovery to pre-COVID-19 levels. The underperformance of US lodging real estate investment trusts indicates that investors have similar perspectives on the future of hotel companies (REITs). The hospitality sector will experience changes in the post-pandemic era, both small-scale and significant. Today, some of them are already obvious.
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What is a technique used to obtain primary data?
A. gaining access to an unpublished government report from the Federal Trade Commission (FTC)
B. conducting personal interviews with potential customers
C. establishing a database to store and cross-index articles from leading academics and researchers
D. reviewing the best-selling trade books and textbooks that present marketing principles
Personal interviews with prospective clients are one method for gathering primary data. Thus, option (B) is correct.
What is the interview?An interview is an organized dialogue in which one person asks questions and the other responds. The term “interview” is commonly used to refer to a one-on-one talk between an interviewer and an interviewee. Individual and group interviews are the two forms of interviews. Interviews with individuals:
There are many techniques to gather primary data. However, self-administered surveys, interviews, field observations, and experiments are the most popular methods.
Therefore, Thus, option (B) is correct.
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Which of the following is not an advantage of using Macabacus’ Export to PowerPoint/Word features in the Excel add-in?
Answer: Exported object/text in PowerPoint/Word are linked to Excel data and can be refreshed within the Excel add-in when the data is modified
Explanation:When refreshing links to reflect updated Excel workbook content, it can be directly done in the PowerPoint add-in by simply clicking the Refresh button. Neither the source workbook nor Excel need to be open to refresh linked shapes.
What are some public policies and what the broad social goals that are most likely targeted by the policies?
Help please:/
Answer:
Students work in small groups and are assigned a version of diary excerpts written by a student intern working for a policymaking legislator. Half the groups read a diary that focuses on stability, security, and equity as broad social goals. The other half read a diary that focuses on freedom, efficiency, and growth. Students determine which broad social goals are emphasized in their reading. During a debriefing, students will discuss broad social goals and identify how trade-offs arise when a society pursues competing social goals. Finally, students choose a current social issue and develop a public policy to deal with that issue, identifying the goals they are attempting to achieve and trade-offs that might arise in terms of other worthy goals.
Explanation:
High Step Shoes had annual revenues of $204,000, expenses of $113,200, and paid dividends of $25,600 during the current year. The retained earnings account
before closing had a balance of $316,000. The Net Income for the year is:
Based on the annual revenues to High Step Shoes and the expenses, the net income for the year can be found to be $90,800
Find out more below.
What is net income?The net income that a company gets refers to the revenue that it gets to keep after the various expenses have been accounted for and then deducted from this revenue.
The net income to High Step Shoes is therefore:
= Annual revenues - Expenses
= 204,000 - 113,200
= $90,800
In conclusion, the net income for the year will be $90,800.
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The argument that fixed manufacturing overhead is a cost of production because it is necessary to
produce units of output, is a characteristic of:
For cost-based pricing decisions, many managers favor absorption-costing information. They contend that the fixed cost of manufacturing is an essential component of production.
When employing variable costing, what does fixed manufacturing overhead entail?Fixed manufacturing overhead is recognized as a period cost under variable costing and is fully charged against the income for the current period. 7-2 Both variable costing and absorption costing treat selling and administrative costs as period costs.
What justifications exist for classifying fixed manufacturing overhead expenses as product costs?According to absorption costing, some of these fixed manufacturing costs can be diversified by product or the entire costs can be divided by the total number of products, therefore they should be classified as product costs.
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What type of market should be considered for these services or products: An orphan drug that is marketed for a rare genetic disease?
Question 2 options:
Micro-market
Mass-market
Untapped markets
Targeted markets
Redefined market
Concerning the orphan drug that is marketed for a rare genetic disease, the type of market that we should be considered for these services or products is known as a targeted markets.
What is known as targeted markets?In marketing, a target market refers to the group of people that have been identified as the most likely potential customers for a product because of their shared characteristics such as age, income, lifestyle, condition etc. This market has a group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service. Its also can inform a product's specifications, packaging and distribution.
The action of identifying the target market is a key part of the decision-making when a firm designs, packages and advertises its product. Therefore, identifying such market for the orphan drug for a rare genetic disease is important in the development and implementation of a successful marketing plan for any new product.
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The company, where you are working, wants to implement a quality management system based on the standard of ISO 9001:2015. As a quality consultant to the company, elaborate on the steps that you will undertake to achieve its implementation.
Include in your answer the different types of documentations required.
The steps which i will take will be as followed - i will Identify the Responsibilities, Policies, and Objectives, clear and Develop the Documents, Launch the Quality Management System, review the Performance, Assess and Register for Certification and maintain Continual Improvement.
How to keep your company's ISO 9001 certification ?Determine the best implementation strategy for your business.Conduct planning and diagnostics.Run training sessions. .Include your staff in this upkeep. Conducting internal audits. Think about using a software planning and development company's support.How is the Quality Management System maintained?Suggestions for enhancing your Quality Management SystemSubstitute processes for procedures. .Change the system so that more people, not fewer, control it. Remove Extraneous Documents. Investigate Using Lean Management Principles. Utilize software that can save archival data.To know more about ISO 9001 here-
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A customer paid Critter Sitters Animal Care cash for dog sitting services. Which two accounts are impacted by this transaction?
O cash and accounts payable
O Cash and sales
O Sales and accounts payable
O Sales and accounts receivable
In the books of Critter Sitters Animal Care, the two accounts impacted by the cash sales transaction are B. Cash and sales.
What are the accounting impacts of cash sales transactions?When a customer pays for services or the sale of goods, the selling entity will debit its cash account and credit its service revenue or sales revenue account.
For the paying customer, the accounting impact is to debit purchases, expenses, or inventory and credit the cash account.
These debit and credit entries agree with the double-entry system of accounting and the accounting equation that states that assets are equal to liabilities and equity, given each business transaction.
Transaction Analysis for Critters:Cash $ Sales $
Thus, Critters Sitters Animal Care should debit its cash account and credit its sales revenue account.
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A good filing system shares all of the common characteristics of a _________.
a.
Highway -- files often travel to different destinations
b.
Database -- it must store information for easy access and retrieval
c.
Business -- each folder must have a unique structure to serve different clients
d.
Library -- all files, whether they are used or not, must be in one location
Answer:
I'm pretty sure that the answer is option b (Database).
Employment assessments are only used during the hiring phase of employment.
Please select the best answer from the choices provided
T
F
Employment assessments are only used during the hiring phase of employment. The given statement is true.
Why is pre-employment assessment important?Without conducting an interview, you will be able to forecast a candidate's success on the job and how they will fit into the company culture. Because they are standardized, you may use them to assess both personality traits and a wider range of skills.
Saves a lot of money compared to having the exam done in person. Multiple candidates may take the tests in different places. As it is done by a computer, the outcomes are more accurate. Online tests have the advantage of allowing test-takers to take the exam whenever and wherever they'd like.
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Mars Electronic Company receives cash from a stockholder, John Tilden, and issues common stock to him. The two accounts involved in this transaction are ________.
Select one:
A.
Common Stock and Accounts Payable
B.
Common Stock and Accounts Receivable
C.
Accounts Payable and Cash
D.
Cash and Common Stock
The two accounts involved in this transaction are Cash and Common Stock. Thus the correct option is D.
What is Stockholder?A stockholder is referred to as an individual who purchases the stock of any company and holds the authority of selling that stock. The stockholders who own a higher percentage in any company will receive voting rights.
A remaining right to a company's present and future earnings is represented by its common stock. In the account of this, shareholders are referred to as co-owners of a business.
In the given case, Mars electronic companies receive cash from the stockholder and issue common stock to him refer as a transaction of Cash and Common Stock
Therefore, option D is appropriate.
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Your new marketing assistant just handed you a presentation that you are to give on
the phases of an effective social media marketing campaign. One of the slides lists the
phases of a typical campaign as follows:
1. Goal setting
2. Develop strategies
3. Target audience
4. Produce content
5. Implement the plan
6. Monitor
7. Measure
Is there anything wrong with the ordering of these phases?
O No, the phases are listed in the correct order.
O Yes, the phases are ordered incorrectly. Measure and Monitor should be switched.
O Yes, the phases are ordered incorrectly. Target audience and Develop strategies
should be switched.
O Yes, the phases are ordered incorrectly. Goal setting and Develop strategies
should be switched.
O Yes, the phases are ordered incorrectly. Produce content and Target audience
should be switched.
Yes, the phases are ordered incorrectly. audience and Develop strategies should be switch.
Tell all about slides lists ?
Goal Setting: Goal-setting is that the process of taking active steps to achieve your desired outcome.
Develop strategies: Strategy development may be a company's plan to achieve consistent growth. this system lists detailed data and objectives that describe how your team plans on accomplishing each goal.
Target audience: A audience is a group of people defined by certain demographics and behavior. Often, businesses use what they realize their target audience to create user personas. These personas guide their decisions on marketing campaigns.
Produce content: Content production is that the process of developing and creating visual or written assets, like videos, eBooks, blog posts, whitepapers, or infographics.
Implement the plan: An implementation plan—also referred to as a strategic plan—outlines the steps your team should take when accomplishing a shared goal or objective. This plan combines strategy, process, and action and can include all parts of the project from scope to budget and beyond
Monitor: Monitoring is that the regular observation and recording of activities taking place in a project or programme. it's a process of routinely gathering information on all aspects of the project. to watch is to check on how project activities are progressing. it's observation; ─ systematic and purposeful observation
Measure: the method of associating numbers with physical quantities and phenomena. Measurement is prime to the sciences; to engineering, construction, and other technical fields; and to most everyday activities.
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I’m ancient times, memory was a vital component in public speaking because?
Rhetoric was the primary element of composition and speaking speech delivery in classical Greece and Rome, both of which were essential abilities for individuals to utilise in both ancient public and private life.
Citizens in ancient Greece spoke for themselves rather than having experts, such as modern lawyers, speaking on their behalf. One can better understand the present by studying history. Consider studying ancient history if you're interested in learning how the art of public speaking has changed over time. About 2,500 years ago, in ancient Athens, public speaking was invented. Men were expected to speak as part of their civic responsibilities, which included doing so in legislative bodies and in court.
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Which one of the following accounts will not appear in a balance sheet?
a.) accounts payable.
b.) accounts receivable.
c.) retained earnings.
d.) Owners' equity.
e) utility expanse.
Answer: Owners' Equity
Explanation: Assets=Liabilities+Shareholders’ Equity
Technically owner's equity is an asset of the business owner—not the business itself
Explain how implementing these public policies could result in “trade-offs” that harm other broad social goals
Helppppppppppp
Placing a tax on soda restricts the freedom of producers and consumers to sell and buy a legal food.If the tax restricts consumption of sugary drinks and leads to reduced obesity, this may improve economic security for workers and if this improves productivity, it can increase economic growth.
Providing subsidies for farmers increases security for the farmers and for consumers who see more stable food prices.However, subsidies result in inefficient farms remaining in business and keep food prices artificially low, harming lower-cost farm producers in other countries. Low food prices may be viewed as providing equity for consumers.
What is economic systems?
All economic systems strive to achieve a set of broad social goals, including economic efficiency, equity, freedom, growth, security and stability. How these goals are prioritized and how successful an economy is at attaining these goals influences the quality of life for all its citizens.
Achieving theses goals is difficult because although the goals complement each other in some cases but in many cases there are trade-offs to face.
What is Trade-offs?
It is a situational decision that involves diminishing or losing one quality,quantity or property of a set or design in return for gains in other aspects.
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Which of the following statements about the taxation of partnerships is true?
1) Both the partnership and the individuals are taxed for any profits earned.
2.) Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns.
3) Partnerships use corporate tax rates in filing returns.
4) Partnerships are limited in taxes depending on number of partners.
5) None of the above about the taxation of partnerships is true.
Answer:
answer is choice #2
- Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns.
The following statements about the taxation of partnership are true Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns. The correct option is B.
What happens to losses in a partnership?If a partner's share of partnership losses exceeds its outside basis in a given taxable year, the losses are allowed to the extent of the basis, with any excess amount carried over to the next taxable year in which the partner has an outside basis available.
A partnership does not pay tax on capital gains or losses, and they are not reported on an income tax and benefit return. Members of the partnership, on the other hand, report their portion of the partnership's capital gains or losses on their personal returns.
Thus, the ideal selection is option B.
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True or False: Logistics management is the primary process of supply chain management.
True or False: The Economic Production Quantity depends in part on the maximum inventory and setup costs.
Answer:
1 .)True
2.)True
Explanation:
thanks for the points
We're Not Broke - The Corporate Tax Cheats of America - Discussion Questions
We're Not Broke film describes the consequences of a rigid tax policy so riddled with loopholes that multinational corporations with billions of dollars in annual revenue can get away with paying no federal taxes. We're Not Broke film contends that there is the untapped political will to change this.
We're Not Broke tells the story of how corporations have been able to hide over a trillion dollars from the government, and how citizens across the country take to the streets to express their displeasure—and vow to hold them accountable.
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What company was sued in 2004 for claiming that their products were made in the
United States when components of the finished products actually came from China,
Austria, and Denmark?
Rawlings
Craftsman
Beats
Stetson
Craftsman was the company that was sued in the year 2004 due to the claims that they made their products in USA while it was made in other nations.
Why was Sears Craftsman sued?This business was known to be hit by a lawsuit in the year 2004. The case was based on the fact that the business had conducted false advertising at the time in the nation. This was the Craftsman tool line that was said to be made in America.
The lawsuit had that the people that went on to buy the tools did so because they were being patriotic since it was said to have been made in America.
The pictures that were attached in the lawsuit went on to show that hthe parts of the product were made in different areas of the world such as India, Austria, Denmark and also in places such as Mexico.
The plaintiffs that were the ones making the case at the time were people such as Sidney Hyatt and Elaine Hyatt in this court case.
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Earnings (net income) $ 189,000
Preferred stock (13,100 shares at $30 par, 4%) $ 393,000
Common stock (43,700 shares no par, market value $52) 514,000
Retained earnings 581,500
$ 1,488,500
Less: Treasury stock
Preferred (1,700 shares) $ 55,000
Common (1,700 shares) 30,000 85,000
Total stockholders’ equity $ 1,403,500
Required
a. Calculate the Stuart Company’s earnings per share ratio, price-earnings ratio and return on equity ratio
The computation of the Stuart Company’s earnings per share ratio, price-earnings ratio, and return on equity ratio is as follows:
The earnings per share ratio are $4.17.The price-earnings ratio is 12.5x.The return on equity ratio is 16.45%.What are the earnings per share ratio?The earnings-per-share ratio is the net income after deducting the preferred dividends divided by the number of common stock shares outstanding.
What is the price-earnings ratio?The price-earnings ratio shows the relationship between the current market price and the earnings per share for the current period.
To compute the price-earnings ratio, which shows the market value of the shares or how much investors can pay for them, obtain the earnings per share and the current share price.
What is the return on equity?The return on equity is the percentage of the returns available for common stockholders and the equity value at the beginning of the period.
Earnings (net income) $ 189,000
Preferred stock (13,100 shares at $30 par, 4%) $ 393,000
Common stock (43,700 shares no par, market value $52) 514,000
Retained earnings 581,500
$ 1,488,500
Less: Treasury stock
Preferred (1,700 shares) $ 55,000
Common (1,700 shares) 30,000 85,000
Total stockholders’ equity $ 1,403,500
Earnings (net income) = $189,000
Preferred Dividend = $13,680 (13,100 - 1,700 x $30 x 4%)
Net income after preferred = $175,320
Earnings per share ratio = Net income/Number of common shares outstanding
= $175,320/(43,700 - 1,700)
= $4.17
Price-earnings ratio = Current market price/Earnings per share
= $52/$4.17
= 12.5x
Return on equity ratio = Net income after preferred dividend/Equity
= $175,320/$1,065,500 x 100
= 16.45%
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A business during which stage of a business life-cycle is most likely to have profits without cash?
a. Start up
b. Mature
c. Declining
d. Bankrupt
During a growth stage, your business may begin to make more money, breaking even, becoming profitable or increasing profitability.
What is growth stage?Growth stage or the growth and expansion stage is the second of five key phases in the business life cycle. The life cycle also includes launch, shake-out, maturity, and decline. During the growth stage, a startup will see sales increase rapidly. This is the phase in which businesses start to see profit.
What is business maturity stage?The maturity stage is when the sales begin to level off from the rapid growth period. At this point, companies begin to reduce their prices so they can stay competitive amongst the growing competition.
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You are currently paying off a $5,000 car loan with a 5% fixed interest rate. Is inflation helping you or hurting you? Why?
If you are paying off a car loan with a fixed interest rate, then it can be inferred that inflation is helping you.
How does inflation affected fixed interest payers?Inflation refers to the general rise in the prices of goods and services over time. It therefore leads to the value of money reducing. For instance, thanks to inflation, the value of a dollar in 1988 is more than the value of a dollar in 2023.
If one is paying a fixed interest rate on a loan, it means that they are paying the same amount in interest regardless of inflation. This means that they are actually paying less because inflation has reduced the value of the amount they pay. There are therefore being helped.
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Please help instructions are attached.
Suppose that a company has a beta of 1.25, the current dividend is 6 euros per share, the
risk-free rate is 5% and the equity market risk premium is 4%. The stock is currently trading at 94 euros.
Determine the constant dividend growth rate that would be required to justify the market price of 94
euros.
The constant dividend growth rate that would justify the market price of 94 euros is 3.4%.
What is the growth rate?The Gordon constant growth formula can be used to determine the value of a stock given its dividend, growth rate and the required rate of return.
Value of the stock = next dividend / (required return - growth rate)
V = D1 / r - g
Where:
D1 = current dividend x (1 + growth rate)
V = D0 / (r - g)
The first step is to determine the required return. The required return can be determined using the capital asset pricing model.
Required return = risk free rate of return + (beta x risk premium)
5% + (4 x 1.25)
5 + 5 = 10%
Substitute for r V and D0 in the constant growth formula:
94 = 6 (1 + g) / (0.1 - g)
94(0.1 - g) = 6(1 + g)
9.4 - 94g = 6 + 6g
9.4 - 6 = 94g + 6g
3.4 = 100g
g = 3.4 / 100
g = 0.034
g = 3.4%
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A coin sold at auction in 2019 for $1,965,500. The coin had a face value of $5 when it
was issued in 1794 and had been previously sold for $305,000 in 1971.
b.
At what annual rate did the coin appreciate from its first minting to the 1971 sale?
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
What annual rate did the 1971 buyer earn on his purchase? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
At what annual rate did the coin appreciate from its first minting to the 2019 sale?
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
At the annual rate of 0.0642 or 6.42% the coin did appreciate from its first minting to the 1971 sale.
Given,
Coin sold at auction in 2019 for - $1,965,500
Face value - $5
Previously sold for - $305,000
Annual rate - ?
The period 't' between the year when the coin was issued, 1794, and 1971 is:
t = 1971 - 1794
t = 177 years
So, if the coin had a value of $5 and after a period of t=177 years it was worth $305,000, the annual rate by which the coin appreciated from its first minting to the 1971 sale is determined by:
[tex]305, 000 = 5 * (1+r)^{177} \\r = \sqrt[177]{61,000} - 1\\r = 0.0642\\r = 6.42%[/tex]
Hence, the annual rate is 0.0642 or 6.42%.
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A target return profit pricing objective implies that a company chooses to
A target return profit pricing objective implies that a company chooses to select a profit target, which is frequently decided by its board of directors.
A target return is a pricing strategy that is tightly linked to an investment in a particular project or product. The target return is determined using the total amount invested in a certain project, as well as the profit the investor expects to get in return, and adjusting for the time value of money. Target return pricing is a method for determining a product's price based on the anticipated rate of return on investment.
Target return pricing is a pricing approach used by e-commerce specialists to assist them to establish the price of a product based on the projected rate of return of their business. In other words, it is the profit that the firm may expect in the future from a specific investment.
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what are the nature's of market imbalance in economics
Answer:
Market disequilibrium is an imbalance between supply and demand - such that supply exceeds the level of demand or demand exceeds the available supply. Types of disequilibrium are labor market disequilibrium and balance of payments disequilibrium
Two countries, the United States and the United Kingdom, produce only one good, saying wheat. Suppose the price of wheat is $2 in the United States and is £1 in England.
b) Suppose the price of wheat over the next year is expected to rise to $3.50 in the United States and to £1.5 in the United Kingdom. What should the one-year $:£ forward rate be? (8marks)
The one-year $:£ forward rate is 2.33 between the United States and the United Kingdom.
What is the price?The amount of compensation that a person is willing to pay for the goods or services that they are acquiring can be referred to as the price. The amount of money being supplied or needed to be paid for a good or service is as the price.
Next year change in the price will be
the United States expected rise in the upcoming year will be $3.50
the United Kingdom is expected to rise in the upcoming year will be £1.5
If there is no ambiguity, the forward rate, will be The price of the united states with respect to the price of the united kingdom will be $3.50/ £1.5
This will result in 2.33 which will be changed in the next year in the price change of the wheat.
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