<span>The
excess is called a net loss. Net loss happens when the amount of expenses exceeds
the amount of revenues generated. Net loss is the difference between the
revenue and expenses wherein the expenses is bigger than the revenues. The
excess is the amount of money the company had overspent. </span>
Answer:
. A. the allocation of the investment portfolio across broad asset classes
Explanation:
Asset allocation is a strategy where an investor spreads his investments in different classes of assets. The purpose of asset allocation is the minimize risks through diversification. An individual asset allocation strategy is guided by their risk tolerance, personal goals, and investment horizon.
The three classes of assets where investors can place their investments are fixed incomes, equities, and cash and cash equivalents. Financial advisors encourage asset allocation to shield against deterioration of investments in certain classes.
Answer:
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Explanation:
To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, the annual coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.1 = $100
Total periods (n) = 20
r or YTM = 0.08 or 8%
The formula to calculate the price of the bonds today is attached.
Bond Price = 100 * [( 1 - (1+0.08)^-20) / 0.08] + 1000 / (1+0.08)^20
Bond Price or Present value = $1196.362948 rounded off to $1196.36
Answer:
A. $53,167
Explanation:
The computation of the depreciation expense under the straight-line method is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($328,000 - $9,000) ÷ (6 years)
= ($319,000) ÷ (6 years)
= $53,167
In this method, the depreciation is same for all the remaining useful life.
The estimated useful life in units is used in units of production method. Hence, it is ignored here.
Answer:
The amount of value created
Explanation:
Value creation occurs when a firm perform actions that lead to a rise in the worth or value of the product its produces or the service its renders.
The aim of any business is to create value that give better value to customers in order entice them to buy its commodity at a better price. As a result, the more value a firm creates, the wider will be the difference between the production cost of the firm and the value placed on the products of the firm. This will in turn make the buyers to buy the product of the firm at a higher price which will lead to a higher profitability of the firm.
The implication is that the best method for a firm to increase its profitability is to create more value.
Therefore, the difference between a firm's production costs and the value consumers perceive in its products is called the amount of value created.