Answer:
rate of return 9.22%
Explanation:
15% return on fund value - 2.4% fund expenses = 12.6% net fund gain
then, the shares were purchased with a loan which required to paiy 3% of interest up-front
therefore, we didn't invest 100% of the loan but 97%
0.97 x .126 = 0,12222
now, we subtract the 3% paid of interest:
.1222-0.03 = .0922 = 9.22%
A. True
Btw that's a picture of me.
Answer: The correct answer is "recorded in equity recorded in equity, as part of other comprehensive income.".
Explanation: Gains or losses on cash flow hedges are <u>recorded in equity, as part of other comprehensive income.</u>
<u>The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.</u>