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DaniilM [7]
3 years ago
7

If a person invests $100,000 now and receives $4,000 per quarter for 10 years, the nominal rate of return per year is nearest to

:
Business
1 answer:
nevsk [136]3 years ago
4 0
With the present amount invested, P, the value received for n pay-out periods is calculated through the equation, 

       P = A x (1 -  (1/(1 + r)^n)) / r)

Substituting the known values,
    100,000 = (4,000)(1 - (1/(1 + r)^40)) / r)

The value of r from the equation is 0.3999 or 0.4. Hence, the nominal rate per year is equal to 1.6. 
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Afina-wow [57]

Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potential​ Entry modes at their disposal.

<h3>What is marketing​ ?</h3>

Marketing is the process of discovering, developing, and delivering value in the form of goods and services to fulfill the needs of a target market; it may also include the selection of a target audience.

Brand marketing is a method of promoting your product or service by promoting your entire brand. Essentially, it conveys the tale of your service or product by stressing your entire brand.

Distribution, finance, market research, pricing, product and service management, promotion, and selling are the seven functions of marketing in the marketing sector.

Properly studied and targeted marketing will bring in new and recurring customers.

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4 0
2 years ago
The following statements accurately describe the difference between saving and investing EXCEPT…
vagabundo [1.1K]

Answer:

Saving can only be done in person. Investing can be done both in-person and online.

Explanation:

Saving refers to keeping some funds aside for use during emergencies. Individuals and institutions also save as a way of accumulating funds for a specific intention. Banks and other deposit-taking institutions offer saving services to pool funds and lend them for investment and consumption.

Saving will attract lower interest rates, sometimes below the inflation rate. Banks offer lower rates on saving and charges a higher interest rate to borrowers to make profits. Because saving offer lower returns, they are suitable for short-term periods. Savings are relatively safer than investment.

Investments offer higher returns but have a higher risk. Due to their price volatility, investments are suited for the long-term to safeguard against price fluctuations.

8 0
4 years ago
In July, a customer invested $10,000 in the ABC Mutual Fund. In December of the same year, ABC announced a long-term capital gai
mihalych1998 [28]

Answer:

Capital gains distribution is treated as long term

Capital gain from from redemption is treated as short term

Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.

Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

4 0
3 years ago
You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company.​ UnderWater's stock price is $
sladkih [1.3K]

Answer:

a. The shareholders will want to tender their shares.

c.  The gain will be $25.31 million – $23.44 million = $1.87 million.

Explanation:

a. The value of the firm is 1.25 million shares* 15= $18.75 million.

Increase in value, 18.75*135% = $25.31 million, so now this is the value of the firm

If 50% of the shares are bought for $18.75 Million, you will buy 0.625 million shares, so the total amount that will be paid is $11.72 million.

Now, the money against shares will be borrowed as collateral. This means that the new value of the equity will be $25.31 million – $11.72 million = 13.59 million.

1.25 million shares are there so now the price of the share will be  =  $10.87 million ($13.59 million/$1.25 million = $ 10.87 million).

b.The price of the shares has decreased from $13.59 to $10.87 after the tender offer, everyone will want to tender their shares for $18.75.

c. Supposing everyone tenders the shares and you will buy at $18.75 per share, you will pay $23.44 (18.75 per share *1.25 million shares) to acquire the company and it will be worth $25.31 million.

The gain will be $25.31 million – $23.44 million = $1.87 million.

3 0
3 years ago
In King v. Riedl,
vovangra [49]

Answer:

Court ruled over in favor of the plaintiffs.

Explanation:

The result was that the court ruled in the favor of the plaintiffs because the contractor was statutorily barred from bringing an action to enforce payment because he doesn't has the residential home builder license and the amount of the contract satisfied statutory requirements.

8 0
3 years ago
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