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LenaWriter [7]
1 year ago
13

the narnian stock market had a rate of return of 45% last year, but the inflation rate was 30%. what was the real rate of return

to narnian investors? (round your answer to 2 decimal places.)
Business
1 answer:
Virty [35]1 year ago
6 0

The annual percentage of profit on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of a particular sum of money over time.

The investor can calculate how much of a nominal return is real return by adjusting the nominal return to account for inflation.

Real rate of return is one plus nominal rate of return.

(1 plus the inflation rate) (1 plus 0.45 = (1 plus 0.30)

(1 + rate of inflation)

The inflation rate is equal to [(1 + 0.45 / (1 + 0.30)]. 1 Inflation rate equals 0.1154 percent, or 11.54%

Real rate of return has the drawback that its value is unknown until after the event has taken place. That is to say, inflation is a trailing indicator for any particular period, meaning it can only be measured after the relevant period has ended.

To know more about inflation, click here:-

brainly.com/question/28190771

#SPJ4

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During the​ year, direct labor costs of​ $30,000 were​ incurred, manufacturing overhead totaled ​$42,000, materials purchased we
andriy [413]

Answer:

Total Manufacturing Cost = $96,347

Explanation:

Total manufacturing cost include all the costs related directly to the production, and does not include any indirect costs, or cost of selling and administration.

Thus, for the information provided we have,

Since not provided assumed no opening and closing inventory.

Total manufacturing cost =

Direct Labor Cost $30,000

Add: Manufacturing Overhead $42,000

Add: Materials Purchased $27,000

Less: Indirect Material included = ($2,653)

Total Manufacturing Cost = $96,347

4 0
3 years ago
Nelson Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann
Rashid [163]

Answer:

2 years

Explanation:

Payback period is the length of time it takes for the future cash flows to equal the initial investment.

$224,000 = $112,000 + $112,000

therefore,

It takes 2 years for the cashflows to equal initial investment

5 0
2 years ago
Tom Tom LLC purchased a rental house and land during the current year for $150,000. The purchase price was allocated as follows:
Anika [276]

Answer:

correct option is B.$2,273

Explanation:

given data

purchased = $150,000

building = $100,000

land = $50,000

to find out

Tom's maximum depreciation for this first year

solution

we will apply here The mid month convention applies

and recovery period for Residential property =  27.5-year

maximum depreciation will be here as

maximum depreciation = $100,000 × 2.273%

maximum depreciation = $100,000 × 0.02273

maximum depreciation = $2,273

so correct option is B.$2,273

5 0
3 years ago
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order
likoan [24]

Answer:

d) Contractual non-compliance provisions are broader in scope.

Explanation:

Both common law and civil law were originated in western Europe. Common law comes from medieval England while civil law comes from ancient Roman Empire. Common law is more flexible than civil law, so that allows different interpretations of the law. Since civil law is more rigid, contractual non-compliance provisions must include all possible contingencies and their outcomes.

3 0
2 years ago
Which of the following describes a system of reporting revenues and expenses in the period in which they are considered to have
saul85 [17]

Answer:

c)accrual basis accounting

Explanation:

Accruals basis accounting (accruals accounting, the matching concept) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts or payments occur in a different period.

In accrual basis accounting:

Revenue from sales and other income should be reported in the period when the income arises (which might not be the same as the period when the cash is received from the customer / client).

The cost of sales in the statement of comprehensive income must be matched with the sales. Income and ‘matching’ expenses must be reported in the same financial period. In other words, when the revenue is recognised from sale then the cost must also be recognised in the similar accounting period.

Other expenses should be charged in the period to which they relate, not the period in which they are paid for.

So based on the above discussion, the answer is c)accrual basis accounting

4 0
2 years ago
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