1 is D.
2 is C.
Number 1 is D. for the fact that you wont be overspending while still having money to use to satisfy yourself.
Number 2 is C. since how easily it is to get everywhere prices will most likely decrease because it will attract customers to buy from them.
Answer:
At the end the account will need have at the end of the 4 years $17.664,31
Explanation:
Consider the following formula of real interest compound
8.000 deposits
sum after n years = 8.000 * (1+.08/4)^(n*4)
= 8.000*(1.02)^40 = $17.664,31
Answer: $25
Explanation:
The Present value of its growth opportunities can be calculated as the value with growth less the value with no growth.
Value without Growth
= Expected earnings/ Market Cap rate
= 5/0.1
= $50
Value with growth
Growth rate = Retention ratio * ROE
= 0.4 * 0.15
= 6%
Value with growth = (Earnings * (1 - Retention Ratio) )/ (Capitalization Rate - Growth Rate)
= (5 ( 1 - 40%) )/ (10% - 6%)
= 3/0.04
= $75
Present value of growth opportunities = Value with growth - Value without Growth
= 75 - 50
=$25
Answer:
B)
Explanation:
Rachel must report $10,000 of LTCG on her tax return. (Long-term capital gains)