Answer:
Average real risk free rate = (1 + Nominal risk free rate / 1 + Inflation rate ) - 1
= (1 + 5% / 1 + 1.5%) - 1
= 1.0345 - 1
= 0.0345
= 3.45%
Average return on stock = Sum of annual returns / Number of years
= 13% + (-8%) + 16% + 16% + 10% / 5
= 0.47 / 5
= 0.094
= 9.40%
Average real returns = (1 + Average return on stock / 1 + Inflation rate) - 1
= (1 + 9.40% / 1 + 1.5%) - 1
= 1 + 0.0940 / 1 + 0.015) - 1
= 1.077832512 - 1
= 0.077832512
= 7.78%
Average real risk premium = Average real return - Average real risk free rate
Average real risk premium = 7.78% - 3.45%
Average real risk premium =4.33%
Answer:
In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes
Explanation:
Patricia is said to made a gift to Matt her husband in 2010 which is (50% ×$400,000) $200,000 which means marital deduction of an equal amount will be allowed for the gift tax purposes .
Matt’s gross estate also includes $1 million which is (50% ×$2 million) and will as well be offset by a marital deduction of an equal amount which is why the correct statement is:
In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes.
I think you might have left out the choices to choose from.
When thieves use your name and good credit rating to get cash or buy things, they are engaging in identity theft.
Identity theft can be define as impersonating another person by making use of that person personal information as their own.
A person using Identity theft can use some else identity to steal from innocent people after stealing the personal details of the person such as the person name so as to obtain cash or to defraud.
Identity theft is bad as it can damage someone image or reputation as the identity thieve can use to commit various crime by pretending to be you.
Inconclusion when thieves use your name and good credit rating to get cash or buy things, they are engaging in identity theft.
Learn more about identity theft here:brainly.com/question/17112484
Answer:
Inventory balance will be of 73,318
Explanation:
Inventory 75,400
Account payable 75,400
to record goods received
Account payable 1,300
Inventory 1,300
to record return of goods
Inventory 700
Cash 700
to record payment of freight
Account Payable 74,100
Inventory 1,482
Cash 72,618
to record payment of invoice within discount period
75,400 - 1,300 = 74,100
74,100 x 2% = 1,482
Inventory balance:
<em> DEBIT CREDIT</em>
75,400
1,300
700
1,482
<u><em>balance: </em></u>
73,318
