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2 years ago

5 of 100

1 answer:

Ber [7]2 years ago

4 0

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

<h3>What do you mean by investment?</h3>

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

$\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\ \rm\,The\,Net \,Income = (95\% \times 3,600 \times 12) - 8,640\\\\ \rm\,The\,Net \,Income = \$32400$

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

$\rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000$

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

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You would like to combine a risky stock with a beta of 1.5 with U.S. Treasury bills in such a way that the risk level of the por

Deffense [45]

Answer:

33.33%

Explanation:

Let weight of T-bill be x, therefore weight of stock will be 1-x

Portfolio = Weight of stock*Beta of stock + Weight of T-bills*Beta of T-bills

1 = (1-x)*1.5 + x*0

1 = 1.5 - 1.5x

x = 0.5/1.5

x = 0.3333

x = 33.33%

Therefore, the percentage of the portfolio invested in treasury bills is 33.33%.

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2 years ago

( Help please suck on this question !! )

nalin [4]

Answer:A

Explanation:

Because as long as a bank does have customers over the next few years then they have to tackle customers engagement.

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2 years ago

Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba

Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%) + (2% × 10%)

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

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2 years ago

The fact that some consumers want flavored bottled water and others want it with added minerals provides an opportunity for ____

aleksandrvk [35]

Answer:

Benefit

Explanation:

Benefit segmentation is dividing or spilt up the market grounded on the perceived advantage or benefit and value consumers perceive, that they will receive from the service or the product.

The person could segment the market grounded on the performance, quality, special features, customer service and other advantages.

Therefore, the fact that the some of the customers want the flavored water bottles and others want to have it with the added minerals, it provides an opportunity for the benefit segmentation.

3 0

3 years ago

Variable costs A. are fixed per unit and vary in total as production levels change. B. are fixed in total as production levels c

Bumek [7]

Answer: Option A

Explanation: In simple words, Variable cost is that cost of the business that changes with level of production. Hourly wage rate of workers, electricity bill of factory are some of many examples of variable cost.

The electricity consumption is fixed per unit, but if the level of production rises the electricity bill also rises as more units will be consumed.

Hence, from the above we can conclude that the right option is A.

8 0

2 years ago