Answer:
Explanation:
The $35,000 that will be needed in 3 years is a future value (FV).
This is an ordinary annuity, and it is asking for the recurring payment (PMT)
Using a financial calculator, input the following;
Future value; FV = 35,000
Total duration ; N = 3*12 = 36 months
Interest rate; I = 3.4%/12 = 0.2833%
One time present cashflow; PV = 0
then compute recurring payment ; CPT PMT =924.86
Answer:
The correct answer is letter "D": Is useful in comparing earnings performance for the same company over time.
Explanation:
Earnings Per Share or EPS is a measure of the income of one given company. EPS is determined by subtracting dividends from the company's profit and dividing the amount by the number of outstanding shares. Higher EPS are convenient for institutions since it implies the revenue is being higher which is likely to attract more investors.
Answer:
Task 1:
The answer is $700.
Task 2:
The answer is $130.
Task 3:
The answer is $20.
Task 4:
The answer is $10,570.
Task 5:
The answer is $110.
Explanation:
<h2>Task 1:</h2><h3>How much does each investor make on his investment with the 7% rate of return?</h3><h3>Solution:</h3>
Adrian & Clemens makes [$10,000*0.07] on their investment = $700.
<h2>Task 2:</h2><h3>How much does Adrian pay in fees for his actively managed mutual fund?</h3><h3>Solution:</h3>
Adrian owes to his broker = (10000*.013) = $130
<h2>Task 3:</h2><h3>How much does Clemens pay in fees for the index fund?</h3><h3>Solution:</h3>
Clemens owes to his broker= ($10000*.002) = $20
<h2>Task 4:</h2><h3>At the end of the year, what's the total value (AFTER FEES) of Adrian's mutual fund?</h3><h3>Solution:</h3>
Value of Adrian's stock = $10000+$570 (net of brokerage) = $10,570
<h2>Task 5:</h2><h3>What's the total value (AFTER FEES) of Clemens's index fund?</h3><h3>Solution:</h3>
Value of clemens' stock = $10000+$680 (net of brokerage) = $10,680
<h2>Task 6:</h2><h3>How much more value does Clemens' investment generate than Adrian's in one year's time?</h3><h3>Solution:</h3>
Clemens investment makes ($680-$570) than adrian's investment = $110
The government can control tariffs and can limit how much can be imported into the usa.
The government can provide subsidies to certain producers, typically farmers.
The government can put a ceiling and a floor on prices as they wish. They can control the lowest and highest price a commodity can sell for.
The government can own public works such as a water company if they feel they can provide the service for a lower cost than the local competitors.
The government can decide which companies are monopolies and which companies are violating federal policies regarding trade. The government has the power to break up monopolies.
Each of these has advantages and disadvantages. For example, for farmers, when prices on their crops are too low, the government "gives" them money for their crops so they can stay in business.
A monopoly business controls the price and supply. If the monopoly is broken up, then competitors can enter the field- this can help drive down prices.
If the government can provide utility services for cheaper, that is good.
