Use the Table Below to Find the Inflation Rate from 2007

question 6

Multiple Choice

Use the table below to find the inflation rate from 2007 to 2008.
$$\begin{array} { | c | c | c | } \hline \text { Year } & \text { Naminal Wage (M) } & \text { CPI } \\\hline 2007 & \$ 13.33 & 113.2 \\2008 & \$ 13.00 & 110.0 \\\hline\end{array}$$

• A) 1.4%
• B) 0.6%
• C) 0%
• D) -0.6%
• E) -1.4%

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage.

Debt to Equity Ratio

The ratio showing the variance in financing methods between debt and equity for a company’s assets.