The return to equity is $75000
Another form of financial ratio is the return on equity. Financial ratios are data taken from a firm's financial statements and used to predict and draw specific conclusions about the organization.
Relative return on equity is a tool used to forecast a company's profitability. It evaluates how effectively people employed in any business have used the money that has been invested.
Since the farm has Nfio of $100,000 and an opportunity cost total of $25,000.
Therefore,
Return on equity -
Net Farm Income from Operations - Opportunity cost
= 1,00,000 - 25,000
= 75,000
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Answer:
Edward can deduct his $7,000 loss from his adjusted gross income (AGI). Partnerships are investments that you make regardless of whether you work for them or not. One of the key characteristics of partnerships is that they are not taxed as separate entities, they pass-through their income or losses to the partners.
Answer:
A. 3 business days
Explanation:
In accordance with RESPA, whenever a buyer obtains a new first mortgage loan from a chartered or insured lender, when the loan is insured by the FHA or guaranteed by the VA, or when the loan will be sold to one of the federally related secondary mortgage market agencies, a good-faith estimate of the settlement costs must be provided by the lender within 3 business days.
a. When the forces of supply and demand lead to an inefficient outcome: economists call this a market failure.
<h3>What is meant by market failure?</h3>
This is the term that has to do with the state where the market that is an economy can be said to not be working.
b. The question in this category needs us to be able to fill in the details from the question into the empty boxes. Therefore:
For the efficient box
- a market in which economic surplus is maximized
For the inefficient box:
- a market transaction in which buyers or sellers behave irrationally
- a market transaction in which one party has information not available to other party
- a market dominated by few powerful businesses
- a market in which government regulation creates distortions
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Answer:
$1,042.04
Explanation:
to calculate the present value using a continuously compounded interest rate, we can use the following 2 formulas:
1) present value = cash flow / eⁿˣ
- e = 2.71828
- x = 5% / 2 = 2.5%
- n = 10
- cash flow = $1,030
present value = $1,030 / 2.71828¹⁰ˣ⁰°⁰²⁵ = $1,030 / 1.284 = $802.16
2) present value of an annuity = payment [(1 - e⁻ⁿˣ) / (eˣ - 1)]
- payment = $30
- x = 2.5%
- n = 9
- e = 2.71828
present value = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30 [(1 - 2.71828⁻⁹ˣ⁰°⁰²⁵) / (2.71828⁰°⁰²⁵ - 1)] = $30(0.2015 / 0.0252) = $239.88
present value of the stream of cash flows = $802.16 + $239.88 = $1,042.04
