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Levart [38]
3 years ago
13

An investment's time horizon affects the after-tax rate of return on investments taxed annually. true or false

Business
2 answers:
Arturiano [62]3 years ago
7 0

Answer:

False, the investment's time horizon doesn't affect the after-tax rate of return on investments taxed annually.

Explanation:

The investment's time horizon is the time someone is going to maintain it's position on a certain investment before they need the money in a liquid state. They are defined by the individual investment strategy and they are relative to those times. For example, a longterm investment is an investment with a long term horizon and that it is focused on a big reward. It doesn't take into account the type of investment project, it could be a stock, lend, credit, real state, etc. And the period of time on the investment capital would be named investment time horizon.

Yuki888 [10]3 years ago
5 0
<span>True. Because of the time value of money taxes paid in the future have a reduced economic burden on the tax payer. Since most investments are taxed only when you cash out, the longer the investment's time horizon, the greater the after-tax rate of return.</span>
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Suppose that three firms make up the entire wig manufacturing industry. One has a 60% market share, and the other two have a 20%
mr_godi [17]

Answer:

4400

Increase

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

Explanation:

Here are the options to the last question

Why is the largest possible value of the Herfindahl index 10,000 ?

a. An index of 10,000 corresponds to 100 firms with a 1% market share each

b. An industry with an index higher than 10,000 is automatically regulated by the Justice Department

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

HHI index = 60²  + 20² + 20² = 4400

If one of the firms leaves the industry, the market share would be distributed between the two firms and this would cause the HHI index to increase as firm's concentration would increase

If only one firm operates in the industry, its market share would be 100% and its HHI index would be 100² = 10,000. For an industry to exist there has to be at least one firm operating in the industry,

7 0
2 years ago
Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $2
Natali5045456 [20]

Answer:

Journal Entry

May 3

Dr. Allowance for doubtful accounts   $2,800

Cr. Account Receivable                        $2,800

Explanation:

When a receivable of the business is considered to be non-collectible from a customer, it is written off from the accounts. This event will decrease the account receivable balance and allowance for the doubtful accounts too. a Debit entry in the Allowance for doubtful account and a credit entry in accounts receivable is made to incorporate the effect of this transaction.

6 0
3 years ago
Tommy bought 35 shares of stock at $45.75 per share. He received dividends of $82.45 during the year. At the end of the year, hi
gogolik [260]

Answer:

10.57%

Explanation:

Return on investment is a profitability measure of gains realized from an investment. It is a ratio that shows how a business uses its resources to generate profits. Return on investment compares the net income against the initial investment.

ROI = Net Income / Cost of Investment

For Tommy,

The initial investment is 35 x $45.75 =$1,601.25

The gains from the investments

Dividends of $82.45

Gains in share value = 35 x ($48. 75 -$45.43)

35 x 2.48 =$86.8

Net gains will be $82.45 + $86.8= $169.25

ROI = $169.25/$1601.25

ROI =0.10569  X 100

=10.57%

5 0
3 years ago
Annissa has been working in the Boulevard Building Company for seven years. She is dedicated to her work and tries to follow the
Brums [2.3K]

Answer: <em>True</em>

Explanation:

The following statement is true, i.e. In accordance to the equity theory, she will try to change the working habits. The equity theory mostly concentrates on evaluating whether the allocation of commodities and resources is impartial to both of the relational partners. Here, equity is evaluated by contrasting the ratio in between the costs and rewards for each individual.

3 0
3 years ago
Splash Co. identifies the following activities that pertain to manufacturing overhead for its production of water polo balls, fo
Sphinxa [80]

Answer and Explanation:

The cost driver refers to the change in the activity units level with respect to the change in activity cost

There are various activities held and according to that the cost driver is also there so that it could be allocated

Just like

Activities                      Cost driver

1) Materials handling - Number of Requisitions

2) Machine setups - Number of Setups

3) Factory machine maintenance - Machine Hours Used

4) Factory supervision - Number of Employees

5) Quality control - Number of Inspections

Material handling should be based on allocating in the number of requisitions

And the same is applied for other activities

8 0
3 years ago
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