Answer:
e. Depression
Explanation:
A recession occurs when there are repeated fall in gross domestic product (GDP) to a severe extent. During this period, a country can experience a significant decline in economic activity spread across the economy, prices then stay at low and could last for months; this describes a deflation that follows depression. A recession on the other hand occur after a country's economic activity reaches its peak of activity.
Answer:
A loss of 69%
Explanation:
Price per share $100
Equity invested $10,000
Funds taken from broker $10,000 at an Interest rate 9.00%
Total investment $20,000
Price change 30.00% less
Margin required 30.00%
Total shares purchased from investing = 200 shares
The shares decrease in value by 30%: $20,000 * 0.30 = $6,000.
You pay interest of = $10,000 * 0.09 = $900.
The rate of return will be:
"$6,000 － $900" /"$10,000" = - 0.69 = - 69%
Answer:
Net operating cash-flow= $6,392
Explanation:
Giving the following information:
Sales of $19,650.
Costs of $9,380
Depreciation expense of $2,050.
Interest expense of $1,540.
The tax rate is 35 percent
Cash- flow:
Sales 19650
Cost= 9380 (-)
Interest= 1540 (-)
Depreciation =2050 (-)
EBT= 6680
Tax= (6680*0.35)=2338 (-)
EAT= 4342
Depreciation= 2050 (+)
Net operating cash-flow= 6392
