Answer and Explanation:
The computation of the real rate of return on these investment alternatives is presented with the help of a spreadsheet which is attached below:-
The formula is presented below:-
Real rate of return = (1 + Nominal rate) ÷ (1 + Inflation rate) - 1
U.S. Government T-bills = 0.49%
Large-cap common stock = 8.64%
Long-term corporate bonds = 2.67%
Long-term government bonds = 1.46%
Small-capitalization common stock = 10.10%
Answer:
The most appropriate hedge for the Salerno company would be:
Explanation:
Here, it is given that a company Salerno desires to get locked at a minimum rate so that at that level it could sell in Japanese yen its all non receivables and later if the yen appreciates substantially against the dollar values when the payment time arrives,
Then
The most appropriate hedge for the Salerno company would be:
Purchasing put options: A put option is a term which means that it gives the owner or the main holder all the rights of selling an asset to a different party at a price which is decided by him and at a specified date which he will be deciding. so, basically he owns all the rights associated with it.
It has also been finalized that it creates a negative image of it in the future value of it in the market stock exchange.
Answer:
A)Software development employees will receive customer feedback about whether the products are helpful to students.
B)Software development employees will have opportunities to tell the research and marketing departments if a new product idea cannot be brought to market in a timely or cost-effective manner.
C)Instead of getting orders from the top management about what products to make, based on what the research department recommends, software development employees will participate on teams that collect data and make decisions.
Explanation:
Horizontal linkage model, gives room to departments in an organization to have relationship in working out new product such as commercial products.horizontal linkage model gives room for a good relationship between worker/employee within a particular organization.
If the company uses the horizontal linkage model, the software development department are expected to do its work by taking actions such as;
✓Receiving feedback from customers about how helpful the product is to the consumer of it.
✓ the relationship the model create will allow the software development employees to communicate with research and marketing departments
if new product ideals cannot be brought to market in a timely or cost-effective manner.
✓development employees will
have a team parformance, to collect data and make decisions.
Answer: $1392
Explanation:
The depreciation rate under straight line is =1/5=0.2
The depreciation rate under double declining is = 0.2 × 2 = 0.4
Depreciation expense for the first year = 0.4 × $5800 = $2320.
At the beginning of year two, net book value = $5800 - $2320 = $3480
Depreciation expense for year two = 0.4 × $3480 = $1392