How can you determine if a company is profitable

On January 1, 2016, Brian's stock portfolio is worth $100,000. On September 30, 2016, $5,000 is withdrawn from the portfolio, an

defon

Answer:

1.93%

Explanation:

The time weighted rate of return will be computed by combining the return at every time period demarcated by a withdrawal/addition.

Time 1: Jan 1, 2016 to Sep 30, 2016

start value = 100,000; end value = (105,000+5,000) = 110,000

Return = $\frac{110,000}{100,000}=1.1$

Time 2: Sep 30, 2016 to Sep 30, 2017

start value = 105,000; end value = 108,000

Return = $\frac{108,000}{105,000}=1.028571$

Time 3: Sep 30, 2017 to Dec 31, 2017

start value = (108,000 + 3,000) = 111,000; end value = 100,000

Return = $\frac{100,000}{111,000}=0.900901$ .

Therefore, time weighted return

= (1.1 * 1.028571 * 0.900901) - 1

= 0.019305

= 1.93%.

3 0

2 years ago

You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with t

photoshop1234 [79]

Answer:

$20,229.5

Explanation:

Given:

Amount to be received = $5,000

Time period, n = 5 years

nominal discount rate = 10.725%

inflation rate = 3 percent

Now,

Using the Fischer's relation, we have

1 + Nominal rate = ( 1 + Real rate ) × ( 1 + Inflation )

on substituting the values, we get

( 1 + 10.725% ) = ( 1 + Real rate ) × ( 1 + 3% )

or

1.10725 = ( 1 + Real rate ) × 1.03

or

( 1 + Real rate ) = 1.075

or

Real rate = 1.075 - 1 = 0.075 or 7.5%

Thus,

Present Value of an ordinary annuity that makes $5000 every year payment for 5 years will be calculates as:

Present value = Monthly payment × $[\frac{(1-(1+r^{-n})}{r}]$

or

Present value = $5000\times[\frac{1 - (1 + 0.075)^{-5}}{0.075}]$

or

Present value = 5000 × 4.0459

or

Present value = $20,229.5

3 0

3 years ago

Which of the following has the biggest impact on consumer goods during war times?

amm1812

<h3>Full question:</h3>

Which of the following has the biggest impact on consumer goods during war times?

a. Consumers deferring purchases in hopes of a better deal

b. High interest rates

c. Low inflation

d. High inflation

Answer:

The biggest impact on consumer goods during war times was High inflation

Explanation:

Inflation raised during or as an immediate outcome of these struggles of stock markets endured dull subsequent termination of the war. The government demanded to execute price and wage restrictions in acknowledgment of inflation which had risen due to the extra inducement that was generated by government spending.

Distinctly, both using and financing continued building subsequent the war; nevertheless, the growth was beneath the course rate before the war. Prices, influenced by the rate of inflation, commonly affect consumer spending on goods significantly.

6 0

2 years ago

Suppose that you have the option to lease a new car, which you otherwise intend to purchase for $21,000. The lease terms: $3000

slava [35]

Answer:

The amount that will be paid to buy the car is $18,539.43.

Explanation:

This can be calculated using the following 3 steps:

Step 1: Calculation of the present of the monthly payment

Since the payments are made at the beginning of each month, this can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:

PVM = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)

Where;

PVM = Present value monthly payments = ?

P = Monthly withdraw = $298

r = monthly financing rate = Financing rate / Number of months in a year = 5.4% / 12 = 0.054 / 12 = 0.0045

n = number of months = 48

Substitute the values into equation (1), we have:

PVM = $298 * ((1 - (1 / (1 + 0.0045))^48) / 0.0045) * (1 + 0.0045) = $12,896.55

Step 2: Calculation of the present of the purchase amount at lease expiration

This can be calculated using the present value formula as follows:

PVP = P / (1 + r)^n .................................. (2)

Where;

PVP = Present value of the purchase amount at lease expiration = ?

P = Purchase amount at lease expiration = $7000

r = monthly financing rate = Financing rate / Number of months in a year = 5.4% / 12 = 0.054 / 12 = 0.0045

n = number of months = 48

Substitute the values into equation (2), we have:

PVP = $7000 / (1 + 0.0045)^48 = $5,642.88

Step 3: Calculation of the amount that will be paid to buy the car

This can be calculated as follows:

Amount to pay to buy car = PVM + PVP ............... (3)

Where:

PVM = Present value monthly payments = $12,896.55

PVP = $5,642.88

Substitute the values into equation (3), we have:

Amount to pay to buy car = $12,896.55 + $5,642.88 = $18,539.43

Therefore, the amount that will be paid to buy the car is $18,539.43.

5 0

2 years ago

Edie would like to better understand a new code section enacted four weeks ago. Which of the following authorities will help Edi

Talja [164]

Answer:

Committee reports

Explanation:

Committee reports

Committee report will help Edie in order to understand the newly enacted code section .

Since ,

A committee report is the report which is submitted by the committee to an assembly on the matters related to the business , which is referred to committee or may be on other matters .

Hence , the correct answer is C. Committee reports .

3 0

3 years ago