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3 years ago

The S&P 500 index delivered a return of 10%, 15%, 15%, and -30% over four successive years.

Business

1 answer:

Anni [7]3 years ago

5 0

Answer:

D) 2.50%

Explanation:

The arithmetic average return is simply the mean of all given return rates. There are four return rates and their values are, 10%, 15%, 15%, and -30%

$AAR = \frac{10+15 +15-10}{4}\\AAR= 2.5\%$

S&P 500 index delivered an arithmetic average annual return of 2.5% for four years

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A pension fund must pay out $1 million next year, $2 million the following year, and then $3 million the year after that. If the

Serga [27]

Answer: 2.29 years

Explanation:

First find the present value of the payments.

= (1,000,000 / 1.08) + (2,000,000/1.08^2) + (3,000,000/1.08^3)

= 925,925.9259 + 1,714,677.6406 + 2,381,496.72306

= $5,022,100.28956‬

Duration = ∑Proportion of payment

= (925,925.9259/5,022,100.28956) + (1,714,677.6406/ 5,022,100.28956‬ ) + (2,381,496.72306 / 5,022,100.28956‬ )

= 2.28983

= 2.29 years

7 0

4 years ago

Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000. The company's depreciation expense is $500,000 and

Bad White [126]

Answer:

BBC's free cash flow is $1,000,000.

Explanation:

Free cash flow is the cash a company generates from its business activities after deducting the cash flows from operations and capital assets. The free cash flow is given by the formula below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Net investment

The parameters are available in the question, what needs to be done is to input those numbers as follows:

Free cash flow = $2,500,000 x (1 - 40%) + $500,000 - $1,000,000

Applying the basic BODMAS rule, you have

Free cash flow = $1,500,000 + $500,000 - $1,000,000

Therefore, BBC's free cash flow is $1,000,000.

5 0

3 years ago

Name some factors that can cause a shift in the demand curve in labor markets

dalvyx [7]

When output price rises, the labor demand curve shifts to the right – more labor is demanded at each wage. When output price falls, less labor is demanded at each wage. Technological change causes the MPL function to change, generally to in- crease at each level of L. This shifts the labor demand curve to the right.

Hope that helps

5 0

3 years ago

If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be

Musya8 [376]

Answer:

C. the price effect would become a more significant consideration for each firm that makes automobiles.

Explanation:

The situation above is highly related to the topic about "supply" and "demand." If the nations of Germany, Japan and the U.S.A. prohibits the international trade in automobiles, this will result to a surplus of automobile goods within the country. Since these automobiles were meant to be sold abroad, the prohibition will lower its international demand. Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.

So, this explains the answer.

4 0

4 years ago

Isabella loves Coca Cola products. She has several memorabilia from her visit to the World of Coca Cola proudly displayed in her

lutik1710 [3]

Answer:

The correct answer is Brand Loyalty.

Explanation:

Brand loyalty is one of the factors that most helps explain why consumers choose one brand or another among all the options offered by the market. According to Jensen and Hansen (2006), the organizations with the most loyal customers have a high market share, which in turn translates into greater profitability. This explains, in part, the growing interest that is evident today in the study of this topic.

5 0

4 years ago