Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
So the expected rate of return of the stock is 5.90%
Best of luck.
The answer to this question is Simple;informal
Simple contracts usually will be used if the transaction happens in small scale (it held small amount of value)
Which means that both parties either believe in one another or they simply do not care enough about the contract to care about the legal precautions.
Answer: See Explanation
Explanation:
Using the first method goes thus:
Form Processing = 12 minutes
Time taken to complete processing = 4 minutes
Total Time for processing will be:
= 12 + (4 × 13)
= 12 + 52
= 64 minutes
Method 2
Form Processing = 5 minutes
Time taken to complete processing = 4 minutes = 4 minutes
Total Time for processing will be:
= 5 + (4 × 13)
= 5 + 52
= 57 minutes
Hence method 2 is better because it's faster as it used a lesser time to process the compared to method 1.
I am not Good at Business and all, but I think it's Experience that will satisfy.
Two methods of capital investment analysis that incorporate the time value of money are -Net Present Value and Discounted Cash Flow
1- Net Present Value
Net Present Value reduces the expected future cash flows by a specific rate to arrive at their value in today's terms. After subtracting the initial investment cost from the present value of the expected cash flows, it can be determined whether the project is worth pursuing. If the NPV is a positive number, it means it's worth pursuing while a negative NPV means the future cash flows aren't generating enough return to be worth it and cover the initial investment.
2- Discounted Cash Flow
With DCF analysis, the discount rate is typically the rate of return that's considered risk-free and represents the alternative investment of the project. The present value is the value of the expected cash flows in today's dollars by discounting or subtracting the discount rate. If the result or present value of the cash flows is greater than the rate of return from the discount rate, the investment is worth pursuing.
To learn more about Net Present Value and Discounted Cash Flow here
brainly.com/question/23040788
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