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3 years ago

4. What's the term for the profit made from selling a stock at a higher price than the price paid for the stock?

1 answer:

4 0

"D. Capital Gain" refers to profit that results from a sale of a capital asset, in this case stocks, where the sale price is higher than the price it was bought for.

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Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of ch

Virty [35]

Answer:

Year 1, Year 2 purchasing power = 8 , 9 (respectively). As price level fall, value of money Increases

Explanation:

Year one purchasing power = Money ($) / Price per basket = 72 / 9 = 8

Year two purchasing power = Money ($) / Price per basket = 72 / 8 = 9

This implies that, as price level falls (from 9 to 8 here) ,the value of money ie purchasing power increases (from 8 to 9)

8 0

3 years ago

The interest rate charged to AAA corporate borrowers is 7.8% for 5 year bonds. The interest rate charged to BBB corporate borrow

azamat

Answer:

Answer is option c.

Default Risk and Liquidity Risk

Explanation:

Default risk - because AAA and BBB differ in credit quality
Liquidity risk - because BBB could potentially have lower liquidity than AAA bond (more stable and could be more traded)

5 0

3 years ago

Trudy’s monthly expenses are outlined in the chart below. Trudy’s job pays her $36,000 annually. Determine Trudy’s DTI (debt-to-

cluponka [151]

Answer:

d. 44%

Explanation:

Calculation to determine what DTI ratio is

First step is to calculate the Debt

Using this formula

Debt = (Rent expense + Carr payment + Loan + Credit card payment) × Number of months in a year

Let plug in the formula

Debt =[($695 + $265 + $200 $160) × 12 months]

Debt= $1,320 × 12 months

Debt = $15,840

Now let calculate DTI ratio using this formula

Using this formula

Debt to income ratio = (Debt) ÷ (Income) × 100

Let plug in the formula

DTI ratio=[ ($15,840 ÷ $36,000) × 100]

DTI ratio=0.44*100

DTI ratio= 44%

Therefore DTI ratio is 44%

6 0

3 years ago

Read 2 more answers

Hector is a married, self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums (not through an exch

Korvikt [17]

Answer:

The answer to this question is option B. Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.

Explanation:

Hector can deduct the cost of the premium for AGI if Hector's spouse participates in an employer-sponsored plan but Hector is not eligible to participate in this plan.

7 0

3 years ago

Your firm can make a product in-house for $11.50 per unit using new production equipment which would cost $30,000. Your firm cou

Nikolay [14]

Answer:

The indifference point is 5,895 units

Explanation:

Giving the following information:

In-house:

Unitary variable cost= $11.5

Fixed cost= 30,000

Buy:

Unitary variable cost= $16.25

Fixed cost= 2,000

To calculate the indifference point, we need to establish the total cost formulas for each option:

In-house:

Total cost= 30,000 + 11.5x

x= number of units

Buy:

Total cost= 2,000 + 16.25x

x= number of untis

Now, we equal both formulas and isolate x:

30,000 + 11.5x = 2,000 + 16.25x

28,000 = 4.75x

5,895 = x

The indifference point is 5,895 units

7 0

3 years ago