Answer:
The real rate of return is 0.10%
Explanation:
For computing the real rate of return, we need to apply the formula which is shown below:
( 1 + nominal rate) = ( 1 + real rate) × (1 + inflation rate)
So,
The real rate = {(1 + nominal rate) ÷ (1 + inflation rate)} - 1
= ((1 + 3.10%) ÷ (1 + 2%)} - 1
= (1.031 ÷ 1.02) - 1
= 1.0107 - 1
= 0.10
The Government T-bills is only the nominal rate so we considered this only
Answer:
A) $3,429
Explanation:
Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio
Capital Balance of Peter = $38,000
Settlement amount = $20,000
As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.
Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000
Peter Share = 4/7 x $6,000 = $3,429
Answer:
D. Trojan Horse, nice to know some computer lab info of mine didn't go to waste
Explanation:
Answer: 10.35%
Explanation:
The Capital Asset Pricing Model is used to calculate the expected return of a security with the expression
Expected return = Risk free rate + Beta ( Market return - risk free rate)
( Market return - risk free rate) is also known as the market premium and can be calculated by;
= 
= 
= 0.0153/0.24
= 6.375%
= 6.38%
Expected return A = Risk free rate + Beta A ( Market return - risk free rate)
0.1137 = Risk free rate + 1.16 (6.38%)
Risk free rate = 0.1137 - 1.16(6.38%)
Risk free rate = 3.97%
Market Expected return = Market Risk Premium + risk free rate
= 6.38% + 3.97%
= 10.35%
Answer:
e. brand dilution.
Explanation:
Brand dilution is when a brand is weakened because it is overused. This usually occurs as a result of unsuccessful brand extension.
Undifferentiated products are products that are intrinsically identical and have high rate of substitution with products from other suppliers. Examples of undifferentiated products are milk , ice and gasoline.
I hope my answer helps you
