Answer: Input Prices have increased.
Explanation:
When an Economy sees prices rising but at the same time productivity is falling, the likely cause of that is an increase in Input prices.
Input Prices are the prices of the raw materials and other goods needed to produce finished goods. If these prices should rise, it becomes more expensive for producers to produce and they will therefore reduce the amount of goods they produce. This reduction in Quantity leads to an increase win prices because according to the Law of Supply and Demand, if supply reduces and demand remains the same then prices must increase till a new equilibrium is reached.
For example, imagine a hypothetical Economy of Steel Makers. If the price of Iron changed from $5 to $10, producers who were producing 20 units of Steel will see their costs double and react by producing only 10 units of Steel to maintain cost margins thereby dropping Productivity.
The 20 units of Steel used to be sold in the market at $20 but now that the supply has dropped to 10 units, the price doubles to $40 to cater for this reduction in Quantity.
Having a saving in the budget will one help obviously save more money for the household and it will build interest over the years.
The type of funding obtained by Setsuko is the line of credit.
The following information should be relevant for the line of credit:
- It is treated as a flexible loan.
- It is an amount of money i.e. defined and can be accessed whenever it is needed and after that, it could be repaid instant or over a period of time.
- It is for a short period of time.
Since in the given situation, it is mentioned that:
- Setsuko obtained the funds for the short term.
- Bank lent her $10,000.
Therefore we can conclude that the type of funding obtained by Setsuko is the line of credit.
Learn more about the line of credit here: brainly.com/question/17937007
Answer:
The estimate value of share of PepsiCo stock is $96.152
Explanation:
Given,
Stock Price of Coca- Cola (MPS which is Market Price per share) is $41.42
EPS (Earnings Per Share) is $1.74
Putting the values in the P/E ratio, for computing the P/E ratio as:
P/E ratio = MPS / EPS
= $41.42 / $1.74
= 23.80
Jones Soda P/E ratio is 33.9
PepsiCo stock EPS is $4.04
Computing the estimate value of share of PepsiCo stock is as:
Value of share pepsico stock = EPS × P/ E ratio
= $4.04 × 23.80
= $96.152
Founders: Benjamin Bejbaum · Olivier Poitrey · Didier Rappaport
