Country X, a poor country, invents a revolutionary electronic product. The country markets this new product in other poor countr
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Answer:
return on equity = 10 %
Explanation:
given data
current market price = $80 per share
own invest = $10,000
borrow additional = $10,000
interest rate = 8% per year
invest in stock = $20,000
to find out
rate of return
solution
we know here total investment is 80 × 250 shares = $20,000
and
stock price rise 9 % that is
stock price = 80 × ( 1 + 9%)
stock price = $87.2
and after 1 year investment value will be = 250 × 87.2
after 1 year investment value = $21800
so
payment to broker will be
payment to broker = borrow fund + interest
payment to broker = $10000 × ( 1+ 8% )
payment to broker = $10800
so remaining after payment to broker is = $21800 - $10800 = $11000
so
return on equity is here
return on equity =
return on equity = 10 %
Total cost for the trip = $800.
Let x = original number of friends.
Therefore the equally shared cost of the trip for each friend is $800/x.
After 2 friends drop out, the cost for each friend increases to $800/(x-2).
The increase in cost for each remaining friend is $20, therefore
Divide through by 20.
Cross multiply.
x(x - 2) = 80
x² - 2x - 80 = 0
(x + 8)(x - 10) = 0
x = -8 or 10
Reject x = -8 because we cannot have a negative number for friends.
x = 10
Answer: There were 10 friends in the original group.
Let x = original number of friends.
Therefore the equally shared cost of the trip for each friend is $800/x.
After 2 friends drop out, the cost for each friend increases to $800/(x-2).
The increase in cost for each remaining friend is $20, therefore
Divide through by 20.
Cross multiply.
x(x - 2) = 80
x² - 2x - 80 = 0
(x + 8)(x - 10) = 0
x = -8 or 10
Reject x = -8 because we cannot have a negative number for friends.
x = 10
Answer: There were 10 friends in the original group.