Answers
Answer:
Return on investment = -0.07215 or -7.215%
Explanation:
The rate of return or percent return on the investment can be calculated by deducting the initial cost of the investment from the current value of the investment and dividing it by the initial cost.
The return provided by the investment can be calculated by adding the returns provided in form of dividend and capital gains both. Thus, the return can be calculated as follows,
Total dividend = 1.25 * 200 = $250
Total selling value = 35.4 * 200 = $7080
Total value = 250 + 7080 = $7330
Return on investment = (7330 - 7900) / 7900 = -0.07215 or -7.215%
Related Questions
Huish Awnings makes custom awnings for homes and businesses. The company uses an activity-based costing system for its overhead costs. The company has provided the following data concerning its annual overhead costs and its activity cost pools: Overhead Costs: Production overhead $150,000 Office expense 100,000 Total $250,000 Distribution of resource consumption: Activity Cost Pools Making Awnings Job Support Other Total Production overhead 45% 40% 15% 100% Office expenses 8% 65% 27% 100% The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. The amount of activity for the year is as follows: Activity Cost Pool Annual Activity Making awnings 5,000 metres Job support 200 jobs Other Not applicablePrepare the first-stage allocation of overhead costs to the activity cost pools
The following income statement is provided for Vargas, Inc. Sales revenue (2,500 units × $60 per unit) $ 150,000 Cost of goods sold (variable; 2,500 units × $20 per unit) (50,000 ) Cost of goods sold (fixed) (8,000 ) Gross margin 92,000 Administrative salaries (42,000 ) Depreciation (10,000 ) Supplies (2,500 units × $4 per unit) (10,000 ) Net income $ 30,000 What is this company's magnitude of operating leverage?
What role should government play in a free market economy?
When a consultant prepared marketing dashboards showing sales data for different household types over a four-year period for Tony's pizza, this was which step of the marketing research approach?
Answers
Answer:
If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary
A 4.5% increase in marginal tax = 0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Explanation:
Tax elasticity of labor supply = 0.16
What percentage will the quantity of labor supplied increase in response to
A) $500 per person income tax rebate
percentage change in quantity supplied = (tax elasticity of supply) * (percentage change in tax rate ) If every work receives a tax rebate of $500 per person income tax the quantity of labor supplied will not increase because the rebate is a temporary measure and does not have an effect the tax rate in the long run.
B) A 4.5% increase in marginal tax
change in the quantity of labor = tax elasticity * increase marginal tax
0.16 * 4.5 = 0.72 = 0.7 ( decrease in quantity of labor )
A 2% increase in marginal tax
= 0.16 * 2 = 0.32 = 0.3 ( decrease in quantity of labor )
A 15% increase
= 0.16 * 15 = 2.4 ( decrease in quantity of labor )
No increase = 0.16 = 0.16 ( quantity of labor supplied remains unchanged )
A reduction of 5%
= 0.16 * 5 = 0.8 ( increase in quantity of labor )
Answers
There is very simple logic between demand and supply. When demand is high, price rises and currency appreciates in its value. On the other hand, price should decline if import rate is mare compared with export rates. As prices of U.S goods increases which ultimately goes to international market where producers have to pay domestic currencies. Americans will demands comparatively less expensive goods. So it will result in supplying more dollars to foreign exchange market.
Finally, increasing demand of pounds. Finally, U.S dollars appreciates and pound depreciates. Trade value is amount by which total import value deviates from export value. Due to changes in interest rates results in trade imbalance in U.S. There is not greater effect on Scotland as it is key player in transporting of energy products to rest of U.K.
b) should the new computer system be purchased?
Answers
Galvanized Products consideration to buy a new computer system for their enterprise data management system with the purchase price of $100,000 is being a good decision
Explanation:
Purchase value $100,000
cash on hand 75,000 + bank loan 1/4 of $100,000= $25000 =$100,000
Estimated Income
(increased efficiencies-payment to technician+MARR )× 5( life span )+ 5000 (salvage value )
(($55,000-$25,000=30,000)+(100,000×18÷100)=18000))×5 =$240,000+5000 = $245,000
Expected liabilities
bank loan interest=((P*(1+i)^n) - P)=(25,000×(1+0.15)^3-25,000)= 13,022
Net value of the purchase proposal
(Estimated Income - Expected liabilities) - Purchase price
= (245,000 - 13,022) = $231,978 - $100,000 = $131,978 (profit)
Hence ,the Galvanized Products consideration to buy a new computer system is a good decision.
Final answer:
The present worth of this investment is -$30,911.60, and the new computer system should not be purchased as the current estimates show that the benefits do not outweigh the costs at the 18% discount rate.
Explanation:
To determine whether the investment is worth it, we will need to calculate the Net Present Value (NPV) of the investment. This takes into account the present value of both the costs and the benefits associated with the investment.
Let's start by calculating the present value of the costs:
- The system itself costs $100,000.
- The loan is $25,000, compounded annually at a rate of 15% over 3 years, which results in a total repayment of roughly $31,357.50 using the formula P(1+r)^n.
- The technician costs amount to a total of $125,000 over 5 years. If we discount these payments back to their present value using the rate of 18%, we get approximately $88,938.24. Using the formula [P/(1+r)^n] for each year and adding them up.
The total present value of costs is therefore roughly $220,295.74.
Next, let’s calculate the present value of the benefits. This is comprised of the $55,000 savings per year due to increased efficiencies, discounted back to present value over 5 years at a rate of 18%, which results in approximately $184,384.14. Then we add the salvage value of the system, which is $5,000, because this value is already in present terms.
The total present value of the benefits is thus around $189,384.14.
The net present value (NPV), calculated by subtracting the present value of costs from the present value of benefits, is thus around -$30,911.60. Since this is a negative value, this suggests that the anticipated benefits of the system does not outweigh its costs at the 18% discount rate.
Therefore: a) the present worth of this investment is about -$30,911.60 and b) the new computer system should not be purchased, based on these calculations and assumptions.
Learn more about Net Present Value Calculation here:
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Answers
Answer: (D) Research and development
Explanation:
In the product synergy system, the each column representing about the opportunity for the efficiency in the research and the development.
The product synergy is one of the concept that helps in explain about the holistic view of an organization where the various types of material and also the energy are get exchange from one unit to another.
The research and the development plays an important role in the industry as it helps in introducing the new innovated products and the services in the market and maintaining the organizational productivity and the bottom line.
Therefore, Option (D) is correct answer.
Answers
Answer:
Structural policy
Explanation:
This is an example of what is known as structural policy.
There are times where the problem of an economy get to be more and also last longer than inadequate demand. This problem can be caused by government policies or sometimes private practices that cause an impediment on the efficient production of goods and Also services. In other to fix a problem such as this, changes have to be made to the economy. Such changes is what is regarded as structural policy.
Answers
Answer:
Explanation:
Tony purchased 100 shares of T-Rex stock for $43 a share. On the same day, Sam also purchased 100 shares of T-Rex stock for $43 a share. Tony paid cash for his purchase while Sam used margin. The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent. Both Tony and Sam sold their shares after eight months at a price of $40 a share. The stock pays no dividends. Tony had a holding period percentage return of -6.98 percent as compared to Sam's -11.63 percent return. Ignore margin interest and trading costs.
Tony HPR without margin= [100 - ($40-$43)]/(100 x $43)
= -6.98%
Sam HPR without margin= [100 - ($40-$43)]/(100 x $43 x 60%)
= -11.63%