Answer:
Secular bear market
Explanation:
A secular bear market is a long term trend that lasts between 5 to 25 years which consists of a smaller bull market and a larger bear market. It means that a small period of increase in prices is followed by a prolonged period of a decrease in price.
A secular bear occurred between January 1980 to June 1999 in the gold market. During this time, the price of gold fell $850/oz to $253/oz
A secular bull market is a long term trend that lasts between 5 to 25 years which consists of a small period of decline in prices is followed by a prolonged period of a rise in price.
Answer:
C) typically zero at initiation.
Explanation:
The reason that their value is zero at initiation is that they are formed in a way that is neither beneficial for the short of the long party therefore they have a value of 0.
Answer:
Depreciation expense for the year ended December 31, 2018 equals: $1,725
Explanation:
Orangewood uses straight-line depreciation, Depreciation Expense each year is calculated by following formula:
Depreciation Expense = (Cost of asset − Residual Value)/Useful Life
In Orangewood:
Cost of ash register is $7,500. The company plans to use the cash register for 4 years and then sell it for $600, therefore, Residual Value is $600 and Useful Life is 4 years.
Depreciation Expense each year = ($7,500-$600)/4 = $1,725
The cash register was bought on January 1, 2018. Depreciation expense for the year ended December 31, 2018 equals: $1,725
Answer:
a) I will pick the shares and sell them ,as this will yield a better return 6,338 to 5,000
b) I will consider:
- the expectation on the stock price
- and the rate of return in the market
- at current price, it will yield 26.76%
Explanation:
100 shares x 63.38 = 6,338 cash bonus for shares
If the stocks should be retained for at least a year.
there are two components that will need consideration:
the expectation on the stock price
and the rate of return in the market
if we assume the stock will keep the same value then it will yield:
6,338 / 5,000 - 1 = 0.2676 = 26.76%
