<h2>Plus changes in business inventories, plus purchases of new residential housing</h2>
Explanation:
Let us understand the term deeply what an "investment" is about.
- It is the amount of money spent on something which would yield a better returns"
- These are purchase of goods which may not be essential or not going to be used immediately but it is bought keeping future in mind
- Those are also called an "asset" which can be sold in future "for higher profit returns"
- This is action is done to "financially" be safe or protected
- There are different types of investment and should be carefully chosen based on the returns and risks associated with that.
Answer:
A
Explanation:
If stock A has a lower dividend yield than stock B, its expected capital gains yield must be higher than stock B's
This i true because's required return for stock A is higher than that of stock B and if the dividend yield is lower than that of B then the growth rate of A must be be higher to offset this difference since the formula for calculating stock price using dividend model uses required rate of return to discount the dividends.
Answer:
Results are below.
Explanation:
<u>To calculate the future value, we need to use the following formula:</u>
FV= PV*(1+i)^n
a) i= 0.04 annually compounded
n= 5
PV= $625
FV= 625*(1.04^5)
FV= $760.41
b) i= 0.04/2 = 0.02 semiannually compounded
n= 5*2= 10
PV= $625
FV= 625*(1.02^10)
FV= $761.87
c) i= 0.04/4 = 0.01 quarterly compounded
n= 5*4= 20
PV= $625
FV= 625*(1.01^20)
FV= $762.62
d) i= 0.04/12 = 0.0033 monthly compounded
n= 5*12= 60
PV= $625
FV= 625*(1.003333^60)
FV= $763.11
Answer: The correct answer is "(A) Debit Accounts Receivable and credit Cash for $560".
Explanation: The non-existent 560 must be adjusted in the cash account, and the 560 receivable must be added to the third party that issued the check in the "accounts receivable" account.
The entry would be:
--------------------------------- . ------------------------------------------
Accounts Receivable 560
Cash 560
--------------------------------- . --------------------------------------------
An example of inferior goods