How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?

Which of the following statements about the role of institutions in economic growth is TRUE and which of the following statement

ki77a [65]

Answer:

Explanation:

(a) Expropriation has Truly been a major concern for the Government through out the globe, as the when an entity or body which is supposed to work for the good of the poor people by making use of the Government property starts dealing in illegal ways to grab it as private or work on other properties which are private in nature,

b) The European invasion of the many countries across the globe had initially been to gain ,more and more wealth and power through business.

However, it is true that the quality of the institutions colonized by the Europeans is related to whether the climate or the diseases in the colonized regime allowed the European settlers to live in those areas.

(c) It is true that the low quality institutions make it difficult to protect property rights and enforce contracts. The rights of the people are all dependent on how the State allows the people to enjoy them.

(d) It is true that the low-quality institutions are central to the theory of poverty traps that states that countries need a big push to felicitate convergence in living standards to the developed world.

8 0

2 years ago

The earned value system starts with the time-phased costs that provide the project baseline, which is called the ___________.a.

nikklg [1K]

Answer:

A. Planned budgeted value of work scheduled.

Explanation:

Earned Value system is a technique used in project management in estimating how well a project is doing in terms of the project budget and allocated schedule. It is used in estimating project efficiency in terms of the estimated deliverables. It helps in checking of the project is going according to "plan". Project efficiencies are measured against the baseline of a project which is the planned budgeted value of work with the aid of earned value system in order to quickly track any deviations in the project.

7 0

2 years ago

Eastern Electric expects to pay a dividend of $1.69 per share next year and sells for $24 a share. a. If investors believe the g

jonny [76]

Answer:

a. 9.04%

b. 4.96% approx.

c. 10%

Explanation:

a. As per dividend growth model,

Required rate of return = $\frac{D_{1} }{P_{0} } \ +\ g$

wherein, $D_{1}$ = Next year expected dividend

$P_{0}$ = Current market price of a share as on today

g = Annual growth rate in dividend ( in percentage)

r = Rate of return or cost of equity

Hence, required rate of return (r) = $\frac{1.69}{24} \ +\ .02$ = 9.04%

b. R = 12%

$P_{0}$ = $24

$D_{1}$ = $1.69

Then, using the above formula, we have,

.12 = $\frac{1.69}{24} \ +\ g$

⇒ g = 4.96 % approx

c. g = 3%

Retention ratio (b) = 30%

Hence dividend payout ratio = 1 - 30 = 70%

g = b × r

.03 = .3 × r

⇒ r = 0.1 or 10%

Hence, rate of return earned by the firm on its's new investment is 10%.

8 0

2 years ago

Lewis company has $25,000 in retained earnings, $40,000 in assets, and $11,000 in liabilities. how much is in common stock?

Nimfa-mama [501]

<span>BASIC FORMULAE IS ASSETS -(LIABILITIES +COMMON STOCK)=RETAINED EARNINGS SO, BY SUBSTITUTION 40000-(11000+COMMON STOCK)=25000 THUS COMMON STOCK 4000</span>

6 0

3 years ago

Redding Industrial Supply had common stock of $6,800 and retained earnings of $4,925 at the beginning of the year. At the end of

White raven [17]

Answer:

61.09 %

Explanation:

For computing the retention ratio we need to do the following calculations

Beginning Retained earnings = $4,925

And,

Net Income = $938

So, before dividend Retained earnings is

= $4,925 + $938

= $5,863

Now the total amount paid is

= before dividend Retained earnings - ending retained earnings

= $5,863 - $5,498

= $365

Now

The Dividend payout ratio is

= Dividend paid ÷ Net Income

= $365 ÷ $938

= 0.389126

And, finally

Retention ratio is

= 1 - Dividend payout ratio

= 1 - 0.389126

= 0.610874 or 61.09 %

4 0

3 years ago