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Gennadij [26K]
3 years ago
10

The primary advantages of the average rate of return method are its ease of computation and the fact that a.rankings of proposal

s are necessary b.it is especially useful to managers whose primary concern is liquidity c.there is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short term d.it emphasizes the amount of income earned over the life of the proposal
Business
1 answer:
Virty [35]3 years ago
6 0

Answer: it emphasizes the amount of income earned over the life of the proposal(D)

Explanation:

The average rate of return is the average yearly amount of cash flow that is generated over the life of an investment. The average rate of return rate is calculated by adding all expected cash flows and then dividing by the number of years which the investment is projected to last for.

The average rate of return allows for a easy comparison between several types of investments. The average rate of return is also easy to compute as it takes note of the amount of income that is earned over the life of the proposal.

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Which of the following statements is correct with respect to economic incentives to release financial information?
makvit [3.9K]

Answer:

B

Explanation:

If investors do not have adequate information about the company they are investing, they would demand an higher rate of return. This would increase the cost of raising capital. So, financial managers who want to raise capital at a cheap rate would have the incentive to disclose information

8 0
2 years ago
The expression, "there's no such thing as a free lunch" implies that:
Stells [14]
The answer is D
I am 90% sure
welcome
4 0
2 years ago
"Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding sha
Ghella [55]

Answer:

Additional paid in capital in excess of par value is any amount of money received through issuing stocks at a higher value than par:

additional paid in capital = ($47 - $5) x 12,000 stocks = $42 x 1,200 = $504,000

Additional paid in capital does not affect retained earnings, so retained earnings should remain unchanged.

8 0
3 years ago
You run a hotel with 200 rooms. Fixed daily cost is $1500 which includes staff salary and property charges, maintenance cost is
erica [24]

Answer:

The revenue is $2,450

Explanation:

The computation of the revenue is shown below:

= Sales - variable cost - additional costs - fixed cost

where,

Sales = Selling units × price per unit

         = 50 rooms × $100

         = $5,000

Variable cost = variable cost × price per unit

                      = 50 rooms × $15

                      = $750

The other cost value would remain the same

Now put these values to the above formula  

So, the value would equal to

= $5,000 - $750 - $300 - $1,500

= $2,450

6 0
3 years ago
Read 2 more answers
Suppose a bank offers to lend you $10,000 for 1 year on a loan contract that calls for you to make interest payments of $250.00
IRISSAK [1]

Answer:

10.38%

Explanation:

From the question above a bank offers to lend an amount of $10,000 for a period of 1 year

The bank expects an interest of $250 to be paid every 4 months

= $250×4

= $1,000

Total amount of interest= $1,000

The first step is to calculate the nominal interest

= (1000/10,000)×100

= 0.1×100

= 10%

Therefore, the effective annual rate on the loan can be calculated as follows

= (1+r/m)^m-1

r = 10% , m = 4

= [1+(10/100)/4]^-1

=[ (1+0.1/4)^4]-1

= (1+0.025^4)-1

= (1.025^4)-1

= 1.1038-1

= 0.1038×100

= 10.38%

Hence the effective annual rate in the loan is 10.38%

6 0
2 years ago
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