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barxatty [35]
3 years ago
5

Suppose you hold a particular investment for 7 months. You calculate that your holding period return is 8.4 percent. What is you

r annualized return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
Leni [432]3 years ago
6 0

Answer:

The annualized return is 14.82%

Explanation:

The formula for annualized return is given as Annualized return = (1+ holding return)12/n - 1

Holding return is 8.4%

n is the holding period of 7 months

Annualized return =(1+0.084)^(12/7)-1

Annualized return =14.82%

It is wrong to simply calculate annualized return as 8,4%*12/7,which means one is taking the interest to annual interest by proportional method,as this gives 14.40%, in investment every basis point counts.

The difference between the two figures is 0.42% which could translate into millions depending on the amount invested as well as the duration of investment

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Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to
gladu [14]

Answer:

OASDI maximum amount in any financial do change but for the year 2020, the OASDI limit is $137,700

if Carson is getting $2,700 each week

Carson will hit the OASDI limit in   ($137,700/$2,700) weeks = 51 weeks.

Explanation:

6 0
4 years ago
If economic activity increases, it follows that economic welfare:
grigory [225]
Probably goes either way 
7 0
3 years ago
Firm ML, a noncorporate taxpayer, exchanged residential rental property for 20 acres of investment land with a $200,000 FMV. ML
wlad13 [49]

Answer:

a. $222,000

b. $22,000

c. $158,000

Explanation:

a. FMV of rental property =  FMV of land received + Received cash

= $200,000 + $22,000

= $222,000

b. FMV of land received       $200,000

Cash boot received                $22,000

Less: Basis of rental property $158,000

Realized gain                           $64,000

Recognized gain (Boot)          $22,000

this transaction qualify for a like-kind exchange under section 1031  When no gain or loss is recognized on an exchange but on Boot received. But recognized gain will be lower of boot amount of realized gain.

c. Carryover basis of original assets =  FMV of rental property - Realized gain

= $222,000 -  $64,000

= $158,000

8 0
3 years ago
What is the top reason managers fail in their role? a. Poor planning practices/reactionary behavior b. Ineffective communication
Nina [5.8K]

b. Ineffective communication skills and practices

Explanation:

The top reason managers fail in their role is due to ineffective communication skills and practices.

  • Effective communication help in high performance
  • Poor communication skills affect workplace causes business failures
  • Ineffective communication skills result in low morale and unhealthy work culture
  • Increases employee attrition rates
6 0
3 years ago
Listed below are a few events and transactions of Kodax Company.
Arada [10]

Answer:

Jan. 2

Investment in Associate $526,000 (debit)

Cash $526,000 (credit)

Sept. 1

Cash $138,000 (debit)

Dividend Received $138,000 (credit)

June 1

Cash $349,600 (debit)

Dividend Received $349,600 (credit)

Dec. 31

Cash $96,500 (debit)

Investment in Associate $96,500 (credit)

Explanation:

When Kodax Company purchased  92,000 shares of Grecco Co she had significant influence (more than 20% of shareholding in Grecco Co). We call this an <em>Investment in an Associate</em>.

The Investment in Associate is a <em>Financial Asset </em>to the Holder (Kodax Company) and an <em>Equity Element</em> to the Investee (Grecco Co) and should be recorded appropriately as above.

3 0
3 years ago
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