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3 years ago

What does our government do with tax money? How does government affect the business cycle? Income distribution?

1 answer:

5 0

Government to invest in technology and education, and to provide goods and services for the benefit of the American people. The government affect the business cycle Use of fiscal policy increased government spending and/or tax cuts is the most common way of boosting aggregate demand, causing an economic expansion.

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An investor purchased 100 shares of the cdl growth and income fund 3 years ago when the pop was $12 and the nav was $11.50. all

Norma-Jean [14]

The investor will show a capital loss of $155.

We gather the following information from this question:

Pop of the fund three years ago : $12

NAV of the fund three years ago : $11.50

Current Pop : $11

Current NAV : $10.45

Number of shares : 100 shares.

We need to calculate capital loss or gain on the 100 shares in the mutual fund.

While taking the cost per unit, we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop.

Similarly, while selling the shares, the shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day on which he wants to sell.

So, the formula to calculate capital gain or loss is:

$Capital gain or (loss) = (NAV per unit at liquidation - POP at purchase ) * No. of shares$

$Capital gain or (loss) = ($10.45 - $12 ) * 100$

$Capital gain or (loss) = ($155)$

3 0

3 years ago

Crane Company had the following account balances:

aivan3 [116]

Answer:

The correct answer is $479,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the total revenue by using following formula:

Total revenue = Net sale + Dividend revenue + Rent revenue

Where, Net sales = Sales revenue - Sales return

= $445,000 - $34,000 = $411,000

By putting the value in the formula, we get

Total revenue = $411,000 + $10,500 + $58,000

= $479,500

4 0

3 years ago

Sweet Sue Foods has bonds outstanding with a coupon rate of 5.44 percent paid semiannually and sell for $1,930.36. The bonds hav

tigry1 [53]

Answer:

Current yield=5.6%

Explanation:

The current yield is the proportion of the current price of a bond earned as annual interest payment.

Current yield = annual interest payment/bond price

Annual interest payment = coupon rate × face value

= 5.44% × $2000

= $108.8

Current yield

= annual interest payment/price

= $(108.8/1,930.36) × 100

= 5.6%

Note we used the annual interest payment nothwithstanding that interests are paid semi-annually

6 0

3 years ago

ABC Hospital invests $5,095,000 in a joint venture with a reputable oncology group and the hospital agrees to a 55% interest in

Vsevolod [243]

Answer:

Year Cash Flow Cumulative Cash flow Discounted Cash Flow(8.9%) 0 $5,095,000 $5,095,000 $453,455 1 $1,500,000 $3,595.000 $3,141,5452 $3,000,000 $ 595,000 $141,5453 $4,500,000 ($3,905,000) $3,4515454 $6,500,000ABC Hospital will get ROI in 3 years, this option I would recommend to the CEO.

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8 0

3 years ago

1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return

inessss [21]

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

6 0

3 years ago