Answer:
$168
Explanation:
The expense ratio calculates Vanguard 500 index fund expenses as a percentage of total funds invested in a mutual fund.
In this case, it measures the percentage of Jill Thomson's investment in the fund that goes to paying management fees, by comparing the mutual fund management fees with his total assets in the fund.
However, all costs are shared amongst the investors.
Expense ratio = operating expenses/average value of fund asset
Expense ratio = 0.14%,
Amount to be paid = expense ratio x amount invested (0.14% * 120,000= 168)
The answer is a corporation.
A corporation is the most complex business type to establish. While a sole proprietor can open up a business nearly instantly, a corporation has to go through a legal process which includes things like establishing the corporation, selling stock, and establishing a board of directors.
Answer:
14.6%
Explanation:
we can use the Gordon growth model to determine the market rate of return (or required rate of return for this stock or similar ones):
current stock price = dividend / (required rate of return - growth rate)
- current stock price = $26.91
- growth rate = 3.8%
- dividend in 1 year = $2.80 x 1.038 = $2.9064
$26.91 = $2.9064 / (RRR - 3.8%)
RRR - 3.8% = $2.9064 / $26.91 = 10.8%
RRR = 10.8% + 3.8% = 14.6%
Economic profit = Accounting profit - Implicit costs is correct
Explanation:
Economic profit includes income minus implied (opportunity) and explicit (currency) costs, while accounting profit includes benefit minus explicit cost.
The monetary risks a organization has are clear. The cost of competition of the capital of a organization are tacit costs.
The administrative expenses a corporation carries out and the income a business receives are the accounting benefit. This is the income from bookkeeping that comes beyond economic benefit.
Benefit accounting= net currency profit-total expenses.
Economic benefit is the expense of money and incentive of a business paying and the profits earned by an firm.
Company benefit= total income–(explicit cost + implicit cost).
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