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Rashid [163]
3 years ago
11

You purchased 50 shares of a stock at $100 per share. Your stock value dropped 5% in one year. If the stock were to continue to

drop at the same rate for an additional half a year, what would be the total value of the stock at that time?
Business
2 answers:
zaharov [31]3 years ago
8 0

Answer:

$4625

Explanation:

Initial value of stock=50 shares each at $100=(50×100)=$5000

Value drops at a rate of 5% in 1.5 years

The total value of the drop=-(5/100)×5000×1.5=-$375

The total value after 1.5 years=Initial value+the drop in value=5000+(-375)=$4625

vitfil [10]3 years ago
7 0

Answer:

4630

Explanation:

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JulsSmile [24]

Based on the fact that ActioNOW and Becca entered into an oral contract where Becca agrees to work on a project for ActioNOW for eighteen months, the enforcers of this contract are d. none of the choices.

<h3>Who can enforce this contract?</h3>

This transaction between Becca and ActioNOW was an oral contract which means that it falls under the Statute of Frauds. However, for an oral contract to be enforceable under this Statute, the goods or services exchanged have to be less then $500 in value.

The services or goods also have to be less than 1 year in duration. Because Becca and ActioNow agreed for a contract of 18 months which is more than a year, this contract is not enforceable under the Statute of Frauds and so the government cannot enforce this contract.

Options include:

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  • b. Becca.
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Find out more on the Statute of Frauds at brainly.com/question/14854791

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1 year ago
Sub-prime loan company is thinking of opening a new office, and the key data are shown below.
Nookie1986 [14]
To complete the above question, please see below:

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 

<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
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The answer is <span>12,271</span>
5 0
3 years ago
Blake Edwards has done some research and has discovered that economists believe interest rates will rise significantly over the
joja [24]

Answer:

Economic conditions

Explanation:

Based on the scenario being described within the question it can be said that this is an example of Economic conditions influencing jobs in the future. These conditions are the different aspects that affect the overall economy of a country which include GDP growth potential, the unemployment rate, inflation, as well as policy orientations.

5 0
3 years ago
Consider the multifactor APT with two factors. Stock A has an expected return of 17.6%, a beta of 1.45 on factor 1, and a beta o
ehidna [41]

Answer:

The risk premium on factor 2 = 9.26%.

Explanation:

Let us denote the risk premium of factor 2 as x

Below is the formula we can use to calculate the risk premium of factor 2.

Expected return on stock = (Beta (factor 1)* expected return of 1) +(beta of 2x * risk free reate)

17.6% = (1.45*3.2%) + 0.86x+5%

17.6 = 4.64 + 0.86x+5%

17.6 - 4.64 - 5= 0.86x

7.96 = 0.86x

x = 7.96/0.86 =9.2558

The risk premium on factor 2 = 9.26%.

5 0
3 years ago
A firm has a net profit/pretax profit ratio of .6, a leverage ratio of 1.5, a pretax profit/EBIT of .7, an asset turnover ratio
Alenkinab [10]

Answer:

The answer is A.15.12%.

Explanation:

Please find the below for explanation and calculations:

We have EBIT = Pretax profit /0.7 = Net profit / (0.6 x 0.7) = 0.42 x Net Profit

=> Net profit / Sales = Profit margin =  0.42 x EBIT/ Sales = 0.42 x Return-on-sales = 2.52%;

Leverage ratio = Asset/ Equity = 1.5;

Sales / Asset = asset turn over ratio = 4;

Apply the Dupont model we have:

Return on Equity = Leverage ratio x Profit Margin x Leverage ratio = 2.52% x 1.5 x 4 = 15.12%.

Thus, the answer is A. 15.12%.

6 0
3 years ago
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