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3 years ago

You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the

Business

1 answer:

FinnZ [79.3K]3 years ago

3 0

Answer:

<u>d. a nominal gain, but no real gain, and you paid taxes on the nominal gain. </u>

Explanation:

<u>Nominal gain:</u> In business, the term "nominal gain" is described as the increase or hike in the price or cost of an asset as per the "federal tax code" and is also denoted as "nominal amount" and is considered as non-adjustable for inflation. However, when a specific product or asset or stock is being sold more than its "actual price" or above its "purchase price" then a gain or profit is noted and hence is taxed.

<u>In the question above, the correct answer is option D.</u>

<u></u>

You might be interested in

There are three

Lana71 [14]

The correct alternative is letter C. Inflation control. This is the first strategy to control the currency in the economy, being one of the main objectives of monetary policy in a country.

<h3 /><h3>What is monetary policy?</h3>

It is the set of governmental strategies and actions to interfere in the investment market and in the consumption power of citizens, through the control of the basic interest rate of the economy, which is an instrument capable of influencing the value of a currency and the prices of goods. consumption, thus generating a control over inflation in search of economic balance in a country.

Therefore, controlling inflation is a short-term measure that generates a series of impacts on an economy, such as fiscal and monetary contraction measures, such as increasing taxes and reducing public spending.

Find out more about monetary police here:

brainly.com/question/13926715

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8 0

1 year ago

A famous quarterback just signed a contract for $16 mil, providing $3.6 million a year for 4 years. A less famous receiver signe

Damm [24]

Answer:

The PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

Explanation:

Present value (PV) refers to the valuation date value of a stream of income expected to be received in the future.

The PV for each of the two contracts can calculated by using the interest rate of 9%% (i.e. 0.12) as the discounting factor (r) to calculate the PV for each year. The discounting formula to use is (1+r)^n where n represents each relevant year. The calculations are done as follows:

1. For a famous quarterback

Step 1. Calculation of the PV for year

Year 1 PV = $3,600,000 ÷ (1.09)^1 = $3,302,752.29

Year 2 PV = $3,600,000 ÷ (1.09)^2 = $3,030,047.98

Year 3 PV = $3,600,000 ÷ (1.09)^3 = $2,779,860.53

Year 4 PV = $3,600,000 ÷ (1.09)^4 = $2,550,330.76

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $11,662,991.56.

2. For a less famous receiver

Step 1. Calculation of the PV for year

Year 1 PV = $3,000,000 ÷ (1.09)^1 = $2,752,293.58

Year 2 PV = $3,000,000 ÷ (1.09)^2 = $2,525,039.98

Year 3 PV = $3,000,000 ÷ (1.09)^3 = $2,316,550.44

Year 4 PV = $3,000,000 ÷ (1.09)^4 = $2,125,275.63

Step 2. Calculation of the total PV

This is obtained by adding the PVs of year 1 - 4 calculated above, and this is equal to $9,719,159.63.

In addition, the $3,000,000 is to receive now is added to the $9,719,159.63 as follows:

PV of less famous receiver = $9,719,159.63 + $3,000,000

= $12,719,159.63

Conclusion

Therefore, the PV of the famous quarterback is $11,662,991.56, while the PV of less famous receiver is $12,719,159.63.

5 0

3 years ago

A rule that all employees in the organization (including the ceo) must fly coach when they travel on commercial airlines represe

Eva8 [605]

The word that completes the sentence is bureaucratic. bureaucratic control is one of the control systems that are defined as systems of rules that are devised and implemented that are applicable to global business and maybe unique to a specific business. it is an important tool for risk management as well.

5 0

2 years ago

On May 7, Keenan Company purchased on account 620 units of raw materials at $21 per unit. During May, raw materials were requisi

a_sh-v [17]

Answer:

Dr Material Inventory $13,020

Cr Trade Payables $13,020

Dr Work In Progress $9,742

Cr Material Inventory $9,742

Explanation:

On 7th May the double entry would be to record the inventory purchases on credit which would increase the inventory by $13,020 (620*21) as under:

Dr Material Inventory $13,020

Cr Trade Payables $13,020

The material sent to production or manufacturing team would be recorded as increase in the work in progress by the value of the material issued which is $9,742 (211*$19 + 273*$21).

Dr Work In Progress $9,742

Cr Material Inventory $9,742

8 0

3 years ago

A ________ involves the introduction of a modified product rather than a totally new product, and has the least disruptive influ

jarptica [38.1K]

Answer: Continuous innovation

Explanation: Continuous innovation as the name suggest, means the ongoing process of innovation on a particular product or industry with slight changes in each and every stage.

The minor innovations in the latest technology overtime is called continuous innovation. Automobile and mobile phones sector are industries depicting continuous innovation.

4 0

3 years ago

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