A bond is a debt instrument. The company or government issuing it borrows your money and pays you a fixed amount of money for the use of the loan you have made available to the company or government. The selling price is usually what the face value of the bond is, but this can vary according to interest rates determined by the Federal Reserve.
A stock is ownership. You own a fraction of the company you've invested in. Sometimes a company pays a dividend. That means that the company has excess funds and decides to pay its shareholders a fraction of what the company brings in. When you buy a stock, you expect to sell it at a higher price than what you bought it at. That's called a capital gain. It's another source of income.
Answer:
only price and quantity matter in determining supply
all other determinants of supply are held constant
Explanation:
At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply
Answer:
2017 = $2,587.50
2018 = $10,350
Explanation:
The computation of the depreciation expense using the straight line method for the year 2017 and 2018 are shown below:
As we know that
The formula to compute the depreciation expense under the straight-line method is
= (Purchased Cost - salvage value) ÷ useful life
For 2017 year
= ($80,360 - $7,910) ÷ 7 year
= $10,350
For 3 months, it is
= $10,350 × 3 ÷ 12
= $2,587.50
And, for 2018, it is $10,350
Answer:
Expected rate of return is 13%
Explanation:
Using the expected values method:
Expected Rate of return = Chance 1 * Outcome 1 + Chance 2 * Outcome 2 + Chance 3 * Outcome 3 + ................... Chance n * Outcome n
So by putting values, we have:
Expected Rate of return = 30% * 20% + 30% * 10% + 40% * 10%
Expected Rate of return = 6% + 3% + 4% = 13%
So the expected rate of return using the expected value method is 13%
