Based on an examination of the risk and return data for a variety of alternative investments during the period of 1926-2011, which of the following statements is correct? Over the period of 1926-2011, the general trend of increasing riskiness among the following five assets is: U.S. Treasury bills, U.S. government long-term government bonds, long-term corporate bonds, large-company stocks, and small-company stocks. Over the period of 1926-2011, the general trend of increasing return among the following five assets is: U.S. Treasury bills, long-term corporate bonds, U.S. government long-term bonds, large-company stocks, and small-company stocks. Large-company stocks, rather than small-company stocks, exhibit the greater risk and the greater return. Small-company stocks, rather than long-term corporate bonds, exhibit both the greater return and the greater standard deviation.

Answers

Answer 1

Answer:

Based on an examination of the risk and return data for a variety of alternative investments during the period of 1926-2011, the correct statement is:

Small-company stocks, rather than long-term corporate bonds, exhibit both the greater return and the greater standard deviation.

Explanation:

Small-company stocks are known to show the highest volatility of returns among  these five assets.  The reason is that investors in small company stocks always expect higher returns to pay for the higher risks involved in such unproven investments, unlike investing in other assets.  In addition, small-company stocks are known to pose higher risks given their known failure to deliver on their promised performance and returns.


Related Questions

Management at Bank ABC is attempting to determine which types of instruments to use for risk management. When comparing exchange-traded instruments to over-the-counter (OTC) instruments, which characteristic should the bank associate with exchange-traded instruments

Answers

Answer:

Options and Swaps.

Explanation:

Hedging is the process of offsetting risk associated with an asset by taking an opposite position in an underlying asset. The hedging may be profitable or it may be in no loss situation. The most common method of hedging is use of derivatives. It is used to minimize foreign exchange and interest rate movement risks. The few common derivatives are futures, swaps and options.

Find the next year's net income for XYZ Inc. Next year, the sales grow by 25%. The current sales $300 million, and the current profit margin is 10% and you expect it to remain constant.

Answers

Answer: $37.5 million

Explanation:

The next year's net income for XYZ will be calculated as follows:

Current sales = $300 million

Current Profit margin = 10%

Sales Growth rate = 25%

The next year's sales will be:

= Current Year's Sales × (1 + Sales Growth rate)

= $300 million × (1 + 0.25)

= $300 million × 1.25

= $375 million

Next Year's Net Income will then be:

= $375 million × 10%

= $37.5 million

Jayco has the following expected cash flows from a project. Calculate the payback period of the project. Year 0 (685,000) Year 1 255,000 Year 2 355,000 Year 3 455,000 Year 4 555,000

Answers

Answer:

2.16 years

Explanation:

Rita is a successful entrepreneur who owns a small coffee shop and serves her customers regular homemade coffee. She recently experimented with a new flavor and distributed free samples to her regular customers. She then sought their feedback on the new flavor. This is an example of ________.
a. brand positioning.
b. test marketing.
c. brand retailing.
d. commercialization.

Answers

Answer:

b. test marketing.

Explanation:

Test marketing is a marketing method that focused for exploring the response of the consumer with respect to the product by making it available on the limited basis prior to release in a bulk. Also the consumer may be or not be aware that is the part of the test group

Since in the given situation, rita experimented the new flavor and distributed it as a free sample

So, it is a test marketing situation

hamilton construction company uses the percentage of completion method of accounting. in 2020. hamilton began work under

Answers

Question Completion:

Hamilton construction company uses the percentage of completion method of accounting.  In 2020, Hamilton began work on the construction of a hospital, which provides for a contract price of $2,195,000.  Other details follow: 202O 2021 Costs incurred during the year 637,600 1,000,000 Total estimated cost 1,594,000 1,637,600 Billings during the year 427,000 2,195,000 Collections during the year 343,000 1,509,000 What portion of the total contract price would be recognized as revenue in 2020?

Answer options: 2,195,000 878,000 1,097,500 427,000 343,000

Answer:

Hamilton Construction Company

The portion of the total contract price would be recognized as revenue in 2020 is:

= $878,000.

Explanation:

a) Data and Calculations:

Contract price = $2,195,000.

                                                          2020           2021

Costs incurred during the year $637,600  $1,000,000

Total estimated cost                  1,594,000     1,637,600

Billings during the year                427,000    2,195,000

Collections during the year         343,000    1,509,000

Percentage of completion= Cost incurred in 2020/Total estimated cost in 2020 * 100

= $637,600/$1,594,000  * 100

= 40%

Revenue to be recognized in 2020  = 40% * Contract Price

= $878,000 ($2,195,000 * 40%)

Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts receivable, net 89,500 62,500 50,200 Merchandise inventory 112,500 82,500 54,000 Prepaid expenses 10,700 9,375 5,000 Plant assets, net 278,500 255,000 230,500 Total assets $ 523,000 $ 445,000 $ 377,500 Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250 Long-term notes payable secured by mortgages on plant assets 98,500 101,500 83,500 Common stock, $10 par value 163,500 163,500 163,500 Retained earnings 131,100 104,750 79,250 Total liabilities and equity $ 523,000 $ 445,000 $ 377,500 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?

Answers

Answer:

Simon Company

1-a) Current ratio =                          1.88            2.52             2.87

= Current assets/Current liabilities

1-b. The current ratio worsened over the three-year period.

2-a) Acid-test ratio =                      1.02            1.43             1.81

= (Current assets - Inventory)/Current liabilities

2-b) The acid-test ratio worsened over the three-year period.

Explanation:

a) Data and Calculations:

At December 31                        Current Yr     1 Yr Ago       2 Yrs Ago

Assets

Cash                                             $ 31,800    $ 35,625        $ 37,800

Accounts receivable, net              89,500        62,500          50,200

Merchandise inventory                112,500        82,500          54,000

Prepaid expenses                          10,700          9,375            5,000

Total current assets                 $244,500    $190,000      $147,000

Plant assets, net                         278,500     255,000       230,500

Total assets                            $ 523,000   $ 445,000    $ 377,500

Liabilities and Equity

Accounts payable                   $ 129,900     $ 75,250      $ 51,250

Long-term notes payable secured by

 mortgages on plant assets      98,500        101,500        83,500

Common stock, $10 par value 163,500       163,500       163,500

Retained earnings                      131,100       104,750         79,250

Total liabilities and equity    $ 523,000   $ 445,000   $ 377,500

1-a) Current ratio =                          1.88            2.52             2.87

= Current assets/Current liabilities

=  Total current assets                 $244,500    $190,000      $147,000

    Accounts payable                   $ 129,900     $ 75,250      $ 51,250

1-b. The current ratio worsened over the three-year period.

2-a) Acid-test ratio =                      1.02            1.43             1.81

= (Current assets - Inventory)/Current liabilities

Current assets - Inventory       $132,000    $107,500      $93,000

Accounts payable                   $ 129,900     $ 75,250      $ 51,250

2-b) The acid-test ratio worsened over the three-year period.

Caber corporation applies manufacturing overhead on the basis of machine-hours. at the begining of the most recent year, the company based it predetermined overhead rate on total estimated overhead of $60,600. Actual manufacturing overhead for the year amounted to $59,000 and actual machine-hours were 5,900. The company's predetermined overhead rate for the year was $10.10 per machine-hour.
a. The pre-determined overhead rate was based on how many estimated machine-hours?
A. 5,783.
B. 6,000.
C. 5,900.
D. 5,842 24.
b. The applied manufacturing overhead for the year was closest to:_____.
A. $58,017.
B. $59,590.
C. $60,600.
D. $58,597.
c. The overhead for the year was:_____.
A. $1,010 underapplied.
B. $590 overapplied.
C. $590 underapplied.
D. $1,010 overapplied.

Answers

Answer and Explanation:

The calculation of each part is given below:

a. The estimated machine hours is

= $60,600 ÷ 10.10

= 6,000 machine hours

b. The applied manufacturing overhead is

= 5,900 × $10.10

= $59,590

c. The overhead should be

= $60,600 - $59,590

= $1,010 underapplied

In this way each and every part should be determined

So the same should be considered and relevant

The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False

Answers

Answer:

Chevrolet Dealership

A) The total cost of the entire inventory is:

= $575,000

B) Each inventory would be reported at the LCNRV:

Inventory Items  Quantity  Reporting Cost/Value

Vans                        4              NRV

Trucks                     7              NRV

2-door sedans        3              Cost

4-door sedans        5              Cost

Sports cars              1              Cost

SUVs                       6              NRV

C) Journal Entry:

Debit Cost of goods sold $27,000

Credit Inventory $27,000

To write-down costs to net realizable values.

D) TRUE.

Explanation:

a) Data and Calculations:

Inventory Items  Quantity    Cost per unit      NRV per Unit      LCNRV

Vans                        4           27000 $108,000      25000        $100,000

Trucks                     7            18000   126,000       17000           119,000

2-door sedans        3           13000     39,000      15000            39,000

4-door sedans        5           17000     85,000     20000            85,000

Sports cars              1          37000      37,000     40000            37,000

SUVs                       6         30000    180,000     28000           168,000

Total Cost                                      $575,000                         $548,000

When should a company consider issuing debt instead of equity?

Answers

Answer:

Many fast-growing companies would prefer to use debt to support their growth, rather than equity, because it is, arguably, a less expensive form of financing (i.e., the rate of growth of the business's equity value is greater than the debt's borrowing cost).

Explanation:

Answer:

There could be many reasons, but probably the company reached its debt ceiling and is not able to borrow anymore (at acceptable conditions), due to low net cash flow relative to debt service, or low available collateral, or both.

Larger expansions or risky undertakings would also be more likely financed by equity - the expansion might require taking on more debt than the company is currently able to service, and the creditors are not sure if it will also bring sufficient additional EBITDA to service large debt. Similar thing with risky business proposals - it is more logical to finance them through equity, where investors share the hard-to-predict benefits as well as potential losses. If they were to be financed by debt, the loan should in theory carry very high interest to make up for the risk profile of the endeavor. Better to make it an equity investment.

Also, issuing equity improves your balance sheet and enables you to take on more debt. Having more equity could also mean cheaper debt (better interest rates). Debt is considered “senior” to equity, in theory losses should hit investors first and creditors later, so having a larger equity cushion means lower credit risk.

If the company suffered some hard times, they are already starved for cash and on top of that creditors would likely want to reduce their exposure - a perfect storm that could put the company out of business due to lack of liquidity, even when the business model is good in the long term (but who has a crystal ball, eh?). Raising more equity may be their only option.

Assume that the price of the sub sandwiches is $4 and the price of tacos is $2. When Harry's income is $14 he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of tacos decreases to $1. Complete this statement: As a result of the change in price, the marginal utility of each taco Harry consumes increases and:__________

a. the substitution effect of the price change will cause Harry to buy more tacos if they are a normal good, and fewer tacos if they are an inferior good.
b. the substitution effect will cause Harry to buy another sub because his purchasing power has increased.
c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
d. the substitution effect will cause Harry to buy fewer tacos.

Answers

Answer:

c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.

Explanation:

Since the price of tacos decreased, subs became relatively more expensive. The substitution effect occurs when a consumer (Harry in this case) changes his consumption habits because the price of the goods changes. In this case, tacos become cheaper, and therefore, Harry will obtain more utils per dollar.

Valley Spa purchased $10,200 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 14% promissory note for $10,200. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.)

Answers

Answer:

Debit Accounts Receivable—Valley Spa $10,438 Credit Interest Revenue $238

Credit Notes Receivable $10,200.

Explanation:

Preparation of the the journal entry to record the dishonored note

Debit Accounts Receivable—Valley Spa $10,438

($10,200+$238)

credit Interest Revenue $238

($10,200 x 14% x 60/ 360)

Credit Notes Receivable $10,200

(To record the dishonored note)

The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ________ economy.

Answers

Answer:

The viewpoint that business should be privately controlled and not controlled by the government is a perspective of a ____capitalist____ economy.

Explanation:

For example, the US economy provides a good example of a capitalist economy.  A capitalist or market economy is also known as capitalism.  It is an economic system whereby private individuals or businesses own capital goods or means of production. Therefore, the production of goods and services is based on the market forces of supply and demand.  Since individuals and firms fix prices of and decide what goods and services to produce, rather than through central planning by the government, it is also known as a market economy.  The opposite is called a command economy, characterized by central government planning.

Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bonds on the market that sell for $959, make semiannual payments, and mature in 16 years. What should the coupon rate be on the new bonds if the firm wants to sell them at par?

Answers

Answer: 8.99%

Explanation:

The coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:

Par value = 1000

Selling value = 959

Maturity = 16 × 2 = 32

Coupon = 8.5% = 8.5% × 1000 = $85

Semiannual PMT = $85/2 = $42.5

The coupon rate on the new bonds will be:

= Rate(32, 42.5, -959, 1000) × 2

= 8.99

Coupon rate = 8.99%

Most spells of unemployment are long, and most unemployment observed at any given time is long-term. a. True b. False

Answers

Answer: False

Explanation:

Unemployment refers to the individuals that are part of the labor force in an economy but cannot find suitable job for themselves.

Most spells of unemployment are not long but rather short while most unemployment observed at any given time is long-term. It should also be noted that the unemployment problem in an economy is usually because of few workers who are without job for long periods of time.

The focus on establishing relationships with all customers has given way to a more targeted effort to seek higher-value customers.
A. True
B. False

Answers

it’s true the more comfortable you make the customer feel the better they feel coming to the place you are

A severe freeze has damaged the Florida orange crop. The impact on the market for orange juice will be a leftward shift of

Answers

Group of answer choices.

A. the supply curve, resulting in a lower equilibrium price.

B. the supply curve, resulting in a higher equilibrium price.

C. the demand curve, as consumers try to economize because of the shortage.

D. the demand curve, resulting in a price ceiling in the market.

Answer:

B. the supply curve, resulting in a higher equilibrium price.

Explanation:

In this scenario, a severe freeze has damaged the Florida orange crop. Thus, the impact on the market for orange juice will be a leftward shift of the supply curve, resulting in a higher equilibrium price.

An equilibrium price can be defined as the price at which the quantity of goods demanded is equal to the quantity of goods supplied.

Additionally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.

Why is it so crucial to ascertain correct/accurateWhy is it so crucial to ascertain correct/accurate market information in your market research market information in your market research prior to carrying out a feasibility study?

Answers

Answer:

It is important because it can help identify potential obstacles that may impede its operations and recognize the amount of funding it will need to get the business up and running.

Explanation:

It is very crucial to ascertain accurate market information in your market research before carrying out a feasibility study so as to help identify possible obstacles that would impeded the business and also to know the amount needed for funding.

analyse the interrelationship anong the stages of group development process ​

Answers

Answer:

Bruce Tuckman presented a model of five stages Forming, Storming, Norming, and Performing in order to develop as a group.

Orientation (Forming Stage) ...

Power Struggle (Storming Stage) ...

Cooperation and Integration (Norming Stage) ...

Synergy (Performing Stage) ...

Closure (Adjourning

Redbud Company uses a certain part in its manufacturing process that it buys from an outside supplier for $44 per part plus another $6 for shipping and other purchasing-related costs. The company will need 10,000 of these parts in the next year and is considering making the part internally. After performing a capacity analysis, Redbud determined that it has sufficient unused capacity to manufacture the 10,000 parts but would need to hire a manager at an annual salary of $40,000 to oversee this production activity. Estimated production costs are determined to be:
Direct material $ 28
Direct labor 12
Variable overhead 6
Fixed overhead (includes manager at $4 per unit) 10
Total unit cost $ 56
A) Identify the relevant costs to make this part internally. (Select all that apply)
A) Historical cost
B) Direct labor
C) Direct material
D) Variable overhead
E) Fixed overhead
F) New manager's salary
B) Should Redbud produce the part or continue to buy it from the outside supplier? (Select the right answer)
A) Redbud should produce the part.
B) Redbud is indifferent about the decision.
C) Redbud should continue to buy it from the outside supplier.
C.What are the other factors that Redbud Company should consider in deciding to make the part internally? (Select all that apply.)
A) Total sales quantity.
B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.
C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.

Answers

Answer:

Redbud Company

A) Relevant costs:

B) Direct labor

C) Direct material

D) Variable overhead  

F) New manager's salary

B) B) Redbud is indifferent about the decision.

C. Other factors to consider:

B) The potential for improved control over the availability of the parts by having it when needed and the potential for improved quality of the parts.

C) Since Redbud Company is considering the use of currently available capacity, it should evaluate any relevant opportunity costs of using this capacity for more profitable activities.

Explanation:

a) Data and Calculations:

Cost of buying parts from outside supplier = $50 per part

Units required in the next year = 10,000

Costs required to produce internally:

Supervisor's salaries $40,000

Direct material             $ 28

Direct labor                      12

Variable overhead            6

Fixed overhead (includes

manager at $4 per unit) 10

Total unit cost              $ 56

Relevant costs:

Direct material             $ 28

Direct labor                      12

Variable overhead            6

Fixed overhead (includes

manager at $4 per unit)  4

Total unit cost              $50

Martinez Company's ending inventory includes the following items. Product Units Cost per Unit Market per Unit Helmets 30 $ 58 $ 62 Bats 23 112 80 Shoes 44 103 99 Uniforms 48 44 44 Compute the lower of cost or market for ending inventory applied separately to each product.

Answers

Answer:

Inventory       Units    CPU    MV per unit    Total Cost   Total MV   LCM

Helmets           30        58             62                  1740           1860      1740

Bats                   23        112             80                  2576          1840      1840

Shoes               44        103             99                  4532         4356      4356

Uniforms          48         44              44                  2112            2112       2112  

Inventory Valuation                                                                               10048

During 2020, Morefield Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,700,000. The company had the following debt outstanding at December 31, 2020:
1. 10%, 5-year note to finance construction of various assets, dated January 1,
2020, with interest payable annually on January 1 $6,300,000
2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable
annually on December 31 7,000,000
3. 9%, 3-year note payable, dated January 1, 2019, with interest payable annually
on January 1 3,500,000
Instructions:
Compute the amounts of each of the following (show computations).
1. Avoidable interest.
2. Total interest to be capitalized during 2020.

Answers

Answer:

1. $1,015,000

2. $1,015,000

Explanation:

1. Computation for the Avoidable interest.

First step is to Compute the weighted average interest rate:

Principal Interest

12% ten-year bonds$ 7,000,000 $840,000

9% 3-year note $3,500,000 $315,000

Total $10,500,000 $1,155,000

Weighted average interest rate = $1,155,000 ÷ $10,500,000

Weighted average interest rate= 11%

Now let compute the Avoidable Interest

Weighted Average Accumulated Expenditures *Applicable interest rate = AVOIDABLE INTEREST

$6,300,000 *.10 = $630,000

$3,500,000 *.11= $385,000

Total $9,800,000 $1,015,000

Therefore the Avoidable Interest is $1,015,000

2. Computation for Total interest to be capitalized during 2020

2020 Actual interest cost

Construction note $6,300,000 × .10 =$630,000

12% ten-year bonds, $7,000,000 × .12 =$840,000

9% three-year note, $3,500,000 × .09=$315,000

Total $1,785,000

Therefore Total interest to be capitalized during 2020 will be $1,015,000 which is the LESSER of

$1,785,000

brooks is babysitting this summer while she is home from college. she puts the money in the bank every week. this illustrates one of the advantages of money over bartering, which is

Answers

Answer:

it can be stored overtime

Explanation:

Identify the two events from the following that cause a Petty Cash account to be credited in a journal entry. (Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) check all that apply Fund amount is being reduced.unanswered Fund amount is being increased.unanswered Fund is being eliminated.unanswered Fund is being established.

Answers

Answer:

Fund amount is being reduced.

Fund is being eliminated.

Explanation:

For example, when you are recording the expenses paid using the petty cash fund, you debit the expenses and credit the petty cash fund account. This also applies when the petty cash fund is too large and the company wants to reduce it; cash will be debited and the petty cash fund account will be credited.

Kevin's Company uses a normal costing system, applying overhead using a single plant-wide rate. At the beginning of the year, budgeted (estimated) manufacturing overhead costs totaled $400,000, budgeted direct labor hours totaled 80,000 hours and budgeted machine hours totaled 20,000 hours. At the end of the year, the actual overhead costs recorded totaled $450,000 and actual direct labor hours were 86,000. Kevin's Company's production process is very labor-intensive and therefore uses direct labor hours as the activity base. With this information, what is the assigned (applied) amount of MOH that Sherfield Company assign to production

Answers

Answer:

$430,000

Explanation:

MOH recovery rate = Estimated MOH / Estimated direct labor hours

MOH recovery rate = $400,000 / 80,000 hours

MOH recovery rate = $5 per direct labor hours

So, the applied amount of manufacturing overhead rate is $5

Assigned amount of MOH = MOH recovery rate * Actual direct labor hours

Assigned amount of MOH = $5 * 86,000 DLH

Assigned amount of MOH = $430,000

Ajax Inc. was formed on April 25 and elected a calendar year for tax purposes. Ajax paid $13,200 to the attorney who drew up the articles of incorporation and $7,100 to the CPA who advised the corporation concerning the accounting and tax implications of its organization. Ajax began business operations on July 15. To what extent can Ajax deduct its $20,300 organizational costs on its first tax return

Answers

Answer: $5510

Explanation:

For organizations cost up to $50,000, there'll be a deduction of $5000. The remaining non deductible expense will then be spread out for 180 months. Here, the non deductible cost will be:

= ($13200 + $7100) - $5000

= $20300 - $5000

= $15300

The capitalized cost will then be:

= $15300 / 180

= $85 per month.

Since there's an ammortization of 6 months from July, then the capitalized cost will be:

= $85 × 6

= $510

Therefore, the amount that should be deducted on its first tax return will be:

= $5000 + $510

= $5510

Ahngram Corp. has 1,000 defective units of a product that cost $3.70 per unit in direct costs and $7.20 per unit in indirect cost when produced last year. The units can be sold as scrap for $4.70 per unit or reworked at an additional cost of $3.30 and sold at full price of $14.10. The incremental net income (loss) from the choice of reworking the units would be:

Answers

Answer:

Reowrk:

Effect on income= $10,800 increase

Explanation:

Giving the following information:

Number of units= 1,000

Sell as-is:

Selling price= $4.7

Rework:

Incremental cost= $3.3

Selling price= $14.1

We need to calculate the effect on the income of both options:

Sell as-is:

Effect on income= 4.7*1,000= $47,000 increase

Rework:

Effect on income= 1,000*(14.1 - 3.3)

Effect on income= $10,800 increase

Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same annual return after 2 years from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does he expect to have exactly $87,200

Answers

Answer:

8.17 years(closest to 8 years )

Explanation:

The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)

As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:

FV=PV*(1+r)^n

FV=future value=$50,300

PV=amount invested initially=$32,200

r=unknown=annual rate of return

n=5 years

$50,300=$32,200*(1+r)^5

$50,300/$32,200=(1+r)^5

$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1

($50,300/$32,200)^1=(1+r)^5

divide index on both sides by 5

($50,300/$32,200)^(1/5)=1+r

r=($50,300/$32,200)^(1/5)-1

r=9.33%

Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)

FV=$32,200*(1+9.33%)^3

FV=value of investment today=$42,079.82

Lastly, we can ascertain when $42,079.82 today would become $87,200

$87,200=$42,079.82*(1+9.33%)^n

n=number of years=unknown

$87,200/$42,079.82=(1+9.33%)^n

$87,200/$42,079.82=1.0933^n

take log of both sides

ln ($87,200/$42,079.82)=n ln(1.0933)

n=ln ($87,200/$42,079.82)/ln(1.0933)

n=0.72863604/0.08920065

n=8.17 years( from today, approx 8 years)

You are a student with a demanding schedule of classes. You also work part time and your supervisor allows you to determine your schedule. In this situation, your scarce resource is time . In this situation, you will work: multiple choice 2 enough hours to get the money to pay for school. as much as your boss demands and hope your grades do not suffer. very little so you can enjoy school. enough to earn some money but not too much to jeopardize your grades.

Answers

Answer: enough to earn some money but not too much to jeopardize your grade

Explanation:

Based on the scenario explained in the question, the student will earn enough to earn some money but not too much to jeopardize his or her grade.

Option A is incorrect as working for enough hours to get the money to pay for school means that the grades will be jeopardized as there won't be time to study or attend classes.

Option B is incorrect because working as much as the boss demands will have a negative effect on grades. Option C is incorrect as well.

The correct option is D.

Please identify what type of error the following sentence includes: While searching for employment, I travelled to Shanghai, China; Los Angeles, California, and London, England.
A. Dangling modifier.
B. Capitalization.
C. Semicolon.
D. Redundancy.
E. Parallel structure.

Answers

Answer: C. Semicolon

Explanation:

The semicolon is used to link two independent clauses in a sentence. It can also be used for the introduction of a new sentence with words like therefore, however, etc.

In this question, the semicolon after China isn't appropriate, a comma will have been better in this regard. Therefore, the correct option is C.

Which of these is more likely to be true?
A. An adaptor is likely to consider radical innovations
B. An innovator is likely to consider incremental innovations
C. Large companies often find it easier to adopt radical innovations.
D. Innovators will often push for radical innovations.

Answers

Answer: D. Innovators will often push for radical innovations.

Explanation:

A radical innovation is one that when made, changes up the way things were being done in the industry that it appears in. For instance, when the first digital camera was made, it changed photography forever.

This is what innovators want. They want to come up with a product that would change the way things are being done and enable them to take over the market.

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