Answer:
Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.
The formula is;
<em>= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)
</em>
Where;
T = Period in question
N = Total period
10 years
= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)
= 10.1 %
25 years
= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)
= 9.76%
30 years
= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)
= 9.65%
Answer: Market Economy
Explanation:
A country in which the economic decisions are majorly controlled by individuals or private companies is a market economy.
A market economy is an economic system where there is very little government interference which is in the form of regulations, the economy is controlled mainly by private individuals and production is determined by the forces of demand and supply.
Answer:
$168,900
Explanation:
Basis for the house is the total of the initial cost + Cost of adding a room + Cost of the house paint + Cost of built-in bookshelves
= 155,000 + 11,000 + 1400 + 1500
= $168,900
Answer:
c. increase of $300,000
Explanation:
The autorized shares do not increase the equity of the firm. The firm generaes equity when the shares are issued. Therefore, we should consider January 2nd issuance:
12,000 common shares x $25 = 300,000 total proceeds
face value: 12,000 common x $5 = 60,000 face value
additional paid-in 240, 000
