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3 years ago

Assume that in 2014, in 1871 $20 double eagle sold for $17,000. what was the rate of return on this investment

1 answer:

4 0

The rate of return is the amount received on top of the cost of the initial investment divided by the initial investment made.

Profit = $17,000 - $20
Profit = $16,980

Dividing the calculated by the initial investment and the number of years.
Rate of return = (($16980/$20)(100%) / (2014 - 1871)
Rate of return = (84900%) / 143
= 593.71%

ANSWER: 593.71%

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when efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price wil

Gelneren [198K]

When efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price will again equal marginal cost.

<h3><u>Explanation:</u></h3>

Marginal cost refers to the cost that is incurred due to the production of additional one unit of any goods or services. It includes all the cost in the production of the extra one unit of the product or services. For instance consider an organisation is planning to build a new machine fore the product of a product and the cost associated with building the new plant will be the marginal cost.

Pure competition market is also called as perfect market. Here there will be a large number of sellers who are the competitors selling a same product. In such a market when the efficiency gets disrupted, then the producers can involve in the reallocation of resources until product supply is such that price will again equal marginal cost.

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4 years ago

An investment pays $400 in one year, X amount of dollars in two years, and $500 in three years. The total present value of all t

k0ka [10]

Answer:

X = 789.70

Explanation:

we solve for X considerign each deposit is discounted at the given rate using the lump sum formula:

$\frac{Maturity}{(1 + rate)^{time} } = PV$

$\frac{400}{1.06}+\frac{X}{1.06^2} +\frac{500}{1.06^3} = 1,500\\X= (1,500 - \frac{400}{1.06} - \frac{500}{1.06^3}) \times 1.06^2$

X = 789.7018868

6 0

3 years ago

When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually.

Gennadij [26K]

Answer:

Correct option is (c)

Explanation:

Given:

YTM (yield to maturity) (Rate) = 12%

Coupon rate = 11%

Face value = $1,000,000

Coupon payment (pmt) = 0.11 × 1,000,000 = $110,000

Time period (nper) = 10 years

Selling price of the bond is the present value of the bond which can be computed using spreadsheet function =PV(rate,nper,pmt,FV)

=PV(0.12,10,110000,1000000)

Present value of bond is $943,498 which is close to option (c)

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3 years ago

What are three economic reasons for corporate acquisitions and mergers?

pantera1 [17]

Answer:The three main types of merger are horizontal mergers which increase market share, vertical mergers which exploit existing synergies and concentric mergers which expand the product offering.

Explanation:

6 0

3 years ago

Daniel Company uses a periodic inventory system. Data for the current year: beginning merchandise inventory (ending inventory De

Maslowich

Answer:

Results are below.

Explanation:

<u>Under FIFO (first-in, first-out), the cost of goods sold is calculated using the cost of the firsts units incorporated into inventory.</u>

COGS= 2,000*38 + 6,200*40= $324,000

Income statement:

Sales= 8,200*75= 615,000

COGS= (324,000)

Gross profit= 291,000

Tax= (291,000*0.3)= (87,300)

Net operating income= 203,700

<u>Under the LIFO (last-in, first-out), the cost of goods sold is calculated using the cost of the lasts units incorporated into inventory.</u>

COGS= 8,000*40 + 200*38= $327,600

Income statement:

Sales= 615,000

COGS= (327,600)

Gross profit= 287,400

Tax= (287,400*0.3)= (86,220)

Net operating income= $201,180

7 0

4 years ago