Answer:
The answer is: level 3 fair value
Explanation:
Level 3 fair value refers to a valuation technique used in situations where the valuation is highly subjective. It is difficult to assign value to level 3 assets since their stocks aren't part of any trading market. For example, mortgage backed securities, private equity shares, foreign stocks, etc. are considered level 3 assets.
Jenny will move forward and Tom will move backwards.
Answer:
$200,000
Explanation:
we must first determine the assessed value not taxed on Garth's old home:
market value of Garth's old home - assessed value = $250,000 - $175,000 = $75,000
now we subtract $75,000 from the market value of Garth's new home:
$325,000 - $75,000 = $250,000 = adjusted assessed value of Garth's new home
The taxable value of Garth's new home (for city taxes) = adjusted assessed value - homestead exemptions (for city taxes) = $250,000 - $50,000 = $200,000
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.
Answer:
5 years
Explanation:
Initital investment $100,000
Cash inflows 1-5 (20,000*5) ($100,000)
The payback period for this investment project is 5 years.
or
100,000/20,000=5 years
