Answer:
The correct answer is D
Explanation:
Solid minerals contained in the land
(Coal, iron, ore, gold or silver)
Hope this helps! （づ￣3￣）づ╭❤～
Minerals known as real property such as gold and silver are known as Solid minerale before they later become personal property.
What is a Solid minerale?These are mineral that is natural occurring in a solid and inorganic state and are representable by a chemical formula.
An example of Solid minerale includes Talc, Gold, Clay, Lithium, Kyanite, Wolframite, Gemstones etc
Therefore, the Option D is correct.
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A sales tax of $1 per unit of output is placed on one firm whose current equilibrium price is $5 and current equilibrium quantity is 100 units. If you know that the elasticity of demand is -1 and the elasticity of supply is (infinity), then after the tax:
a. pb=6, ps=5, and QT=unknown but less than 100
b. pb=4, ps=5, and QT=unknown but less than 100
c. pb=6, ps=5, and QT=100
d. pb=4, ps=5, and QT=100
Answer:
B
Explanation:
B is the correct answer
Nichols, Inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 75,000 shares of $1 par value common stock outstanding at December 31 of the current year and has declared a dividend for the year. What is the annual dividend that will be paid to the preferred stockholders
Answer: $20,000
Explanation:
The dividends due to preferred stock are fixed and quoted on the preference shares.
The above shares are to get 4% of their par value in dividends.
= (4% * 100) * 5,000 shares
= $20,000
A yearly dividend is a the price paid per share of funds by the firm to its stockholders.
The yearly dividend that will be paid to the elected stockholders will be $20,000
It can be determined by using the formula:[tex]= \text{Monthly Shares} \times \text{Number of payments per year}[/tex]
The above shares are to get 4% of their par price in interests:[tex]= (4\% \times 100) \times 5,000 \; \text{shares}[/tex]
= $20,000
Therefore, $20,000 will be paid to the stockholders.
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Karya Company produces a handcrafted musical instrument called a gamelan. The gamelans are sold for a unit price of $839 Selected data for the company's operations last year follow: Units in beginning inventory 0 Unit produced 11,000 Units sold 7,000 Variable cost per unit: Direct materials $150 Direct labor $450 Variable manufacturing overhead $47 Variable selling and administrative $19 Fixed costs: Fixed manufacutring overhead $790,000 Fixed selling and administrative $620,000 What are the unit product costs under absorption and variable costing system
Answer:
Results are below.
Explanation:
Giving the following information:
Unit produced 11,000
Variable cost per unit:
Direct materials $150
Direct labor $450
Variable manufacturing overhead $47
Fixed costs:
Fixed manufacturing overhead $790,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Variable costing:
Unitary cost= 150 + 450 + 47= $647
Absorption costing:
Unitary fixed overhead= 790,000/11,000= $71.82
Unitary cost= 647 + 71.82= $718.82
An economy begins in long-run equilibrium, and then a change in government regulations makes holding money less attractive. a. (1.5 points) How does this change affect the demand for money
Answer: Demand Curve shifts left
Explanation:
Money is now less attractive to hold so people will demand less of it. This will cause the demand curve in the monetary market therefore to shift to the left.
Shifts in the demand curve for money are usually caused when a non-interest determinant of demand changes such as a decrease in income.
Emily Corporation purchased all of Ace Company's common stock on January 1, 2020, for $1,000,000 cash. The investee's stockholders' equity amounted to $400,000. The excess of $600,000 was due to an unrecorded patent with a six-year life. In 2020, Ace reported net income of $250,000 and paid dividends of $25,000.
For 2020, what amount of Equity Income will Emily record? How to get the answer of 1,125,000
Answer:
$ 1,125,000
Explanation:
Calculation for the amount of Equity Income that Emily will record
First step is to find the Net equity income using this formula
Net equity income= Net income +Dividends
Let plug in the formula
Net equity income=$250,000+$25,000
Net equity income=$225,000
Second step is to find the balance of investment using this formula
Balance of investment= (Common stock + Net equity income )- Amortization of unrecorded patent
Let plug in the formula
Balance of investment =($1,000,000+$225,000 )-($600,000/6)
Balance of investment=$1,225,000-$100,000
Balance of investment = $ 1,125,000
Therefore the amount of Equity Income that Emily will record will be $ 1,125,000
12.The competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making A. entails little or no strategy coordination across countries. B. usually involves cross-subsidizing the prices in those markets where there are significant country-to-country differences in the product attributes that customers are most interested in. C. involves selling a mostly standardized product worldwide, but varying a company's use of distribution channels and marketing approaches to accommodate local market conditions. D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions. E. involves having strongly differentiated product versionsfor different countries and selling them under distinctly different brand names (one for each country or group of neighboring countries) so that there will be no doubt in customers' minds that the product is more local than global.
Answer:
D. is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
Explanation:
A think global act local is a strategic business approach or concept which is aimed at achieving a low cost, effective cost, efficiency and focused strategy theme in all the locations where the firm has its operations but nonetheless avails local managers the opportunity and ability to adjust product
specifications, distribution and marketing channels to better satisfy local consumers, as well as effectively and efficiently match local market conditions.
Hence, the competitive strategy of a firm pursuing a "think global, act local" approach to strategy-making is essentially the same in all country markets where it competes but it may nonetheless give local managers room to make minor variations where necessary to better satisfy local buyers and to better match local market conditions.
Slow 'n Steady, Inc., has a stock price of , will pay a dividend next year of , and has expected dividend growth of per year. What is your estimate of Slow 'and Steady cost of equity capital
Answer:
Slow 'and Steady cost of equity capital is 11%.
Explanation:
Note: The question is not complete as the important data are committed. The full question is therefore provided before answering the question as follows:
Slow n' steady Inc, has a stock price of $30, will pay a dividend next year of $3, and has expected dividend growth of 1% per year. what is your estimate of slow n steady's cost of equity capital?
The explanation to the answer is now given as follows:
The cost of equity can be calculated using the Gordon growth model (GGM) formula for calculating current stock price
The GGM has the assumption that there will be a stable dividend growth rate year after year forever.
Tje GGM formula is given as follows:
P = d1 / (r - g) ……………………………………… (1)
Where;
P = Current share price = $30
d1 = Next year dividend = $3
r = Required rate of return or cost of equity = ?
g = Expected dividend growth rate = 1%, or 0.01
Substituting the values into equation (1) and solve for r, we have:
30 = 3 / (r - 0.01)
r - 0.01 = 3 / 30
r - 0.01 = 0.10
r = 0.10 + 0.01
r = 0.11, or 11%
Therefore, Slow 'and Steady cost of equity capital is 11%.
Murray Company reports net income of $770,000 for the year. It has no preferred stock, and its weighted-average common shares outstanding is 350,000 shares. Compute its basic earnings per share.
Answer:
EPS = 2.2
Explanation:
Earning per share is the amount due to each of the ordinary shareholders after settlement of interest due on loans , preferred dividends and tax.
Earnings per share (EPS) = Earnings attributable to ordinary shareholders ÷ Units of shares
Where ;
Earnings attributable to ordinary shareholders = Net income - Preferred dividends
EPS = $770,000 - 0 ÷ 350,000 shares
EPS = $2.2
The beta of company Myers’s stock is 2. The annual risk-free rate is 2% and the annual market premium is 8%. What is the expected return for Myers’ stock? A. 14% B. 25% C. 20% D. 18
Answer:
18%
Explanation:
Myers's stock has a beta of 2
The annual risk free rate is 2%
The annual market premium is 8%
Therefore, the expected return for Myers's stock can be calculated as follows
= 2% + (2×8%)
= 2% + 16%
= 18%
Hence the expected return for Myers's stock is 18%
Cozy, Inc., manufactures small and large blankets. It estimates $530,850 in overhead during the manufacturing of 64,247 small blankets and 98,875 large blankets. What is the predetermined overhead rate per machine hour if a small blanket takes 2 machine hour and a large blanket takes 3 machine hours
Answer:
Predetermined manufacturing overhead rate= $1.25 per machine hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $530,850
Total estimated machine hours= 64,247*2 + 98,875*3= 425,119
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 530,850 / 425,119
Predetermined manufacturing overhead rate= $1.25 per machine hour
Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and production.
Answer:
Please see explanation below.
Explanation:
Knowledge management system is a system that allows sales people have quick and right information about a company's value proposition without having to wait for feedback from team members or someone else in the company. An advantage of knowledge management system is the ability to train many employees remotely or places where they may be needed.
Various ways ways that knowledge management system could help sales and marketing.
•Getting sales people on the same page. A company's sales team should understand the value propositions of their firm and how such values distinct them from the competitors. Each sales member should be acquitted with the knowledge management system which provides an easily accessible place for the company's value proposition. It also means that the values should readily be known and understood by everyone and are able to apply them according to how situations demands.
• Allowing to refine and deliver a better training process. This explain that knowledge management system can assist in terms of tracking questions frequently asked by sales people , contents mostly assessed by them and activities often carried out by top sales person that bring about the best result. All the information gathered including possible answers and training contents can then be loaded into the knowledge management system to help train new hires.
• Helping to track valuable insights and information. Prospects and customers usually give useful feed back which can assist a sales team and sales representative handles future sales opportunities. It is not enough capturing these information on the knowledge management system, they should be properly organized and accessible for other team members to benefit .
• Making it easier for sales and marketing to help each other. An important part of marketing team's task is to understand the challenges faced by the target audience and the questions prospects commonly ask so as to create relevant contents for them and also upload them on the knowledge management system portal. Such information should be often accessed by the team and then take better advantage of it.
Other areas knowledge management system could help sales and marketing are assistance with sales trend, high level decisions with regards to product orders, price negotiations . etc
For the current year ended March 31, Cosgrove Company expects fixed costs of $27,600,000, a unit variable cost of $805, and a unit selling price of $1,150.a. Compute the anticipated break-even sales (units).unitsb. Compute the sales (units) required to realize operating income of $5,175,000.units
Answer:
Instructions are below.
Explanation:
Giving the following information:
Fixed costs= $27,600,000
Unitary variable cost= $805
Unit selling price= $1,150
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 27,600,000 / (1,150 - 805)
Break-even point in units= 80,000 units
Desired income= $5,175,000
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (27,600,000 + 5,175,000) / 345
Break-even point in units= 95,000 units
assume that the marginal propensity to consume is 0.90 and autonomous consumption expenditures equals $100 billion. Further, assume that planned investment spending is
Answer:
$4 trillion or $4,000 billion$3.5 trillion or $3,500 billionExplanation:
1. Equilibrium Output or GDP is calculated by the expression;
Output or Y = Consumption + Investment + Government expenditure + Net exports
Net exports and Government expenditure are assumed to be 0.
Consumption = 100 + 0.9Y
Investment = $300 billion
Y = 100 + 0.9Y + 300
Y - 0.9Y = 400
Y = 400/0.1
Y = $4,000 billion
2. Y = 50 + 0.9Y + 300
Y - 0.9Y = 350
0.1Y = 350
Y = 350/0.1
Y = $3,500 Billion
S. Wang and T. Wu are partners with equal capital balances of $50,000 each. They agree to let J. Li invest $20,000 in their partnership for a 10% interest, including bonuses to the existing partners. The journal entry to reflect the bonus to Wang will include a credit to _______ in the amount of ______.
The journal entry to reflect the bonus to Wang will include a credit to Wang, Capital in the amount of $4,000
First step is to calculate S. Wang and T. Wu and J. Li capital amount
Capital=$50,000+$50,000+$20,000
Capital=$120,000
Second step is to calculate their new capital
New capital=$120,000*.10
New capital=$12,000
Now to determine Wang bonus amount we have to divide the capital equally between S. Wang and T. Wu
Bonus=($20,000-$12,000)/2
Bonus=$8,000/2
Bonus=$4,000
Therefore journal entry to reflect the bonus to Wang will include a credit to Wang, Capital in the amount of $4,000
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_______ appraisals occur between managers and their subordinates whenever the need to discuss ongoing progress and areas for improvement arise.
Answer: Informal
Explanation: appraisals that occur between managers and their subordinates whenever the need to discuss ongoing progress and areas for improvement arise is known as an informal appraisal. Here, a manager provides significant feedback and direction to his employees outside of a formal review meeting thus providing opportunities for coaching and rapport building. It is carried out whenever the manager or supervisor deems it necessary.
2. Giving examples, discuss the pros and cons of the globalization debate. Give at least three (3) points each for the pros and cons.
Answer:
The answer is below
Explanation:
Globalization or specifically, Economic Globalization, is a term that (differs from Political and Cultural Globalization) describes the distribution of products, services, technology, information, and jobs across various countries, continents, and cultures.
The advantages or pros of economic globalization includes the following:
1. Economic Globalization is expected to result in free trade that enhances global economic growth; leads to more jobs, makes firms extra competitive, and reduces the prices of products generally.
2. It promotes technological advancement, whereby developed countries utilizes and transfer capital-intensive production and technological advancement to developing countries, through the transfer of labor-intensive production processes.
3. It enhances the quality of life: this is shown when each country involves in a form of division of labor, production, and trade based on their strength and resources. This, in turn, leads to lesser production costs, increases productivity, and results in a better quality of life.
The disadvantages or cons of economic globalization includes the following:
1. Labor markets are exploited in terms of wages and salaries: this occurs whereby workers in developing regions are paid lesser compared to normal or international standards, thus the gap between the upper class and the lower class keeps increasing.
2. Tax Evasion: this occurs when some multinational firms find ways to exploit the tax and operation system of other countries, mostly the less developed and developing countries, so as to avoid paying the necessary taxes.
3. There is also a form of labor exploitation in terms of working conditions, as convicts and child laborers are sometimes encouraged to work in undesirable situations considered to be inhumane where safety standards are overlooked for the purpose of producing cheaper goods.
Suppose the tax rate on nominal interest income is 20% and does not change over time. Also assume the real interest rate remains constant. In year 1, the inflation rate is 4% and the nominal interest rate is 10%. In year 2, the inflation rate is 14% The real interest rate in both years is 16 The nominal interest rate in year 2 is 20 The after-tax nominal interest rate in year 1 is 7.
a. The after-tax nominal interest rate in year 2 is __________
b. The after-tax real interest rate in year 1 is ______________
c. The after-tax real interest rate in year 2 is ______________
Answer:
a. The after-tax nominal interest rate in year 2 is __________
after tax nominal interest rate = 20% x (1 - tax rate ) = 20% x 0.8 = 16%
b. The after-tax real interest rate in year 1 is ______________
after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1
after tax nominal interest rate yer 1 = 10% x 0.8 = 8%
inflation rate = 4%
after tax real interest rate = [1.08 / 1.04] - 1 = 3.85%
c. The after-tax real interest rate in year 2 is ______________
after tax real interest rate = [(1 + after tax nominal interest rate) / (1 + inflation rate)] - 1
after tax nominal interest rate yer 1 = 16%
inflation rate = 4%
after tax real interest rate = [1.16 / 1.14] - 1 = 1.75%
Explanation:
year 1
inflation rate 4%
nominal interest rate 10%
real interest rate 6%
year 2
inflation rate 14%
nominal interest rate 20%
real interest rate 6%
"A tender offer has been made for PDQ common shares. The brokerage firm department that would handle the tendering of shares is the:"
Answer: Re-organization department
Explanation:
A tender offer is a public takeover bid that consists of an offer to buy either some or all of the shares that are available in a corporation.
When a tender offer has been made for PDQ common shares. The re-organization department is the brokerage firm department that would handle the tendering of shares.
JWU Company has been growing at a rate of 5% for the past two years and is expected to continue for several years. The company paid a Dividend of $2.00 last year. If your required rate of return is 13%, what is the current value of this company’s stock?
A. $26.25
B. $15.38
C. $40.00
D. $29.50
Answer: A. $26.25
Explanation:
Using the Gordon Growth model, the value of the stock can be determined using the available variables.
The formula is;
Value of a Stock = Next Dividend / (Required Return - Growth Rate)
Value of a Stock = Current Dividend (1 + Growth Rate) / (Required Return - Growth Rate)
= 2 ( 1 + 0.05) / ( 0.13 - 0.05)
= (2 * 1.05) / 0.08
= $26.25
hich of the following is NOT one of the ways companies are using mobile apps? Group of answer choices track behavior across tablets and mobile devices utilize cookies to track mobile activity utilize GPS data to provide location-based offers track loyalty program participation add social value and entertainment to consumers' lives
Answer: Add social value and entertainment to consumers' lives
Explanation:
In this age of technology, companies have found that being able to offer their customers relevant products can be greatly helped by gathering information about them and offering it to them directly on their phones. A great way to do so is through the use of mobile apps.
With mobile apps a company can track behavior on the device as well as track mobile activity. They could even use the GPS capabilities of the phone through the app to offer relevant location based content.
However, as much as companies would like their customers to have enjoyable lives, this is not an aim with mobile apps. The apps are there to boost the companies sales not to add social value and entertainment to consumers' lives unless of course, that is the company's main business.
Answer:
Which features are created by wave erosion?
Your answer is:
- arches
- cliffs
- stacks
Explanation:
A company was moving from one part of the city to another. During the move, a truck carrying computer equipment worth more than $250,000 was trapped in a flooded underpass, and the equipment was destroyed. Fortunately, the company was insured under several policies. The policy that would most likely cover the computer equipment during the move from one facility to another is
Answer:
Causality policy
Explanation:
This policy makes provision for an organization or individual to be insured against any damage to property as a result of negligent acts or omissions.
In this case the property–$250,000 worth of computer equipment held inside the truck was trapped in a flooded underpass, and the circumstances shows there may have likely been negligence on the part of the truck driver.
A car rental agency rents 190 cars per day at a rate of $30 per day. For each $1 increase in rate, 5 fewer cars are rented. At what rate should the cars be rented to produce the maximum income? What is the maximum income?
Answer:
At what rate should the cars be rented to produce the maximum income?
$34 per day (170 cars rented)What is the maximum income?
$5,780Explanation:
number of cars rented rental price total income
190 $30 $5,700
185 $31 $5,735
180 $32 $5,760
175 $33 $5,775
170 $34 $5,780
165 $35 $5,775
160 $36 $5,760
155 $37 $5,735
150 $38 $5,700
145 $39 $5,655
140 $40
135 $41
130 $42
Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest payment of $90 and is currently selling for $960. Airborne is in a 20 percent tax bracket. The firm wishes to know what the aftertax cost of a new bond issue is likely to be. The yield to maturity on the new issue will be the same as the yield to maturity on the old issue because the risk and maturity date will be similar.
Required:
a. Compute the yield to maturity on the old issue and use this as the yield for the new issue.
b. Make the appropriate tax adjustment to determine the aftertax cost of debt.
Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%
Explanation:
A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
Where C – Interest payment = $90
FV – Face value of the security
= $1000
PV – Present value/curent market value = $960
t – years it takes the security to reach maturity= 10 years
imputing the values and calculating,
yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
= $90 + (1000-960)/10} / 1000 + 960 /2
$90 + 4= $94 /980= 0.0959
therefore Yield to maturity is 9.59%
B) After tax cost of debt = Yield To Maturity x (1 - tax rate)
=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =
9.59 % x 80%=7.672%
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,960 per month plus $326 per snow-day. For the month of December, the company planned for activity of 20 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $9,770. The spending variance for vehicle operating cost in December would be closest to: rev: ________
a. $290 U
b. $290 F
c. $942 U
Answer:
c. $942 U
Explanation:
Spending variance = Standard cost at 20 snow days - Actual operating cost.
Spending variance = [$2,960 + ($326*18)] - $9,770
Spending variance = $8,828 - $9,770
Spending variance = $942 (Unfavorable).
Note: The actual level of activity = 18 snow-days.
The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor-hours:
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Budgeted direct labor-hours 11,000 9,700 10,000 10,800
The company uses direct labor-hours as its overhead allocation base. The variable portion of its predetermined manufacturing overhead rate is $5.75 per direct labor-hour and its total fixed manufacturing overhead is $78,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $19,500 per quarter.
Required:
a. Prepare the company’s manufacturing overhead budget for the upcoming fiscal year.
b. Compute the company’s predetermined overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year.
Answer:
Manufacturing Overhead Budget
Quarter 1st 2nd 3rd 4th
Variable Overheads $63,250 $55,775 $57,500 $62,100
Fixed Overheads $78,000 $78,000 $78,000 $78,000
Total Overheads $141,250 $133,775 $135,500 $140,100
Explanation:
When Preparing the Manufacturing Overhead Budget Note the following :
The Manufacturing Overheads Include Both Fixed and Variable Overheads.Be careful to absorb the Variable overheads cost at the direct labor-hour.Fixed Overheads can Include both cash and non-cash items.
Kindly help me here
Answer:
pic quality is too low so I didn't understand
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as:
Complete Question:
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as:
Group of answer choices.
A. a merger strategy.
B. a bicultural audit.
C. assimilation.
D. deculturation.
Answer:
B. a bicultural audit.
Explanation:
Bark Inc. and Happy Toys Ltd. Bark Inc. and Happy Toys Ltd. are considering a merger and are worried that their two organizational cultures will clash. They perform a detailed diagnosis by collecting and analyzing data about the employees of the two companies. They identify several overlapping values, which they feel can be combined into a cohesive new culture. This process is known as a bicultural audit.
A bicultural audit can be defined as the process of analyzing and measuring the cultural relations between two companies prior to a merger, as well as identifying the extent to which there might be cultural clashes among its employees.
Generally, bicultural audit process start with the identification of cultural differences between the merging companies. In order to create a cohesive new culture between the merging companies, a good action plan and effective strategy should be developed.
in partnership businesses.if one partner withdraws part of his salary. How to record it in appropriation account and Current account.??Accounts
Answer:
it can be to be and so
Explanation:
Consider a basket of consumer goods that costs $90 in the United States. The same basket of goods costs CNY 105 in China.
Holding constant the cost of the basket in each country, compute the real exchange rates that would result from the two nominal exchange rates in the following table.
Cost of Basket in U.S (Dollars) Cost of Basket in China (Yuan) Nominal Exchange Rate (Yuan per dollar) Real Exchange Rate (Baskets of Chinese goods per basket of U.S goods)
90 105 7.00
90 105 10.50
Answer:
The real exchange rates that would result from the two nominal exchange rates are:
For the first row in the table RER is 6.
For the second row in the table RER is 9.
Note: See the attached excel file for the table.
Explanation:
Note: The table in the question is merged together. It is therefore sorted before answering the question. See the attached excel file for the sorted table.
The answer to the explanation to the answer is now provided as follows:
The real exchange rate (RER) between the the currencies of two counties can be described as the multiplication of the nominal exchange and the ratio of baskets of goods between these two countries.
RER can can therefore be calculated using the following formula:
RER = (e * P*) / P ................................. (1)
Where, from the question;
e = Nominal exchange rate or Yuan per dollar
P* = Cost of Basket in U.S (Dollars)
P = Cost of Basket in China (Yuan)
For the first row in the table:
e = Nominal exchange rate or Yuan per dollar = 7
P* = Cost of Basket in U.S (Dollars) = $90
P = Cost of Basket in China (Yuan) = 105
Substituting the values into equation (1), we have:
RER = (7 * 90) / 105
RER = 630 / 105
RER = 6
For the second row in the table:
e = Nominal exchange rate or Yuan per dollar = 10.50
P* = Cost of Basket in U.S (Dollars) = $90
P = Cost of Basket in China (Yuan) = 105
Substituting the values into equation (1), we have:
RER = (10.50 * 90) / 105
RER = 945 / 105
RER = 9
The real exchange rates that should lead from the two nominal exchange rates should be 6 and 9.
Calculation of the real exchange rate:RER = (e * P*) / P ................................. (1)
Here,
e = Nominal exchange rate or Yuan per dollar
P* = Cost of Basket in U.S (Dollars)
P = Cost of Basket in China (Yuan)
So,
e = Nominal exchange rate or Yuan per dollar = 7
P* = Cost of Basket in U.S (Dollars) = $90
P = Cost of Basket in China (Yuan) = 105
Now
RER = (7 * 90) / 105
RER = 630 / 105
RER = 6
Now
e = Nominal exchange rate or Yuan per dollar = 10.50
P* = Cost of Basket in U.S (Dollars) = $90
P = Cost of Basket in China (Yuan) = 105
So,
RER = (10.50 * 90) / 105
RER = 945 / 105
RER = 9
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"13. In Laura’s new role at Walden-Martin Family Medical Clinic, she will be writing checks to take care of the accounts payable for the clinic. A practicum student has just started at the clinic and will be working with Laura for the next several days. How should Laura describe this aspect of her job? "
Laura characterizes her employment as "trusting" because she will be working with Laura in the accounting office for the next few days.
When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
There are five components to performing a work, according to the explanation:
1. Be respectful.The first of the five characteristics is respect, which has the most weight with your staff.
2. Salary and BenefitsThis employment feature has risen in importance since 2012, when it was ranked third. It is the only significant aspect of the job having a monetary value.
3. Have faith in yourself.When rumors of future layoffs or closures circulate, transparency keeps employees from leaving.
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