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Darina [25.2K]
2 years ago
9

Assume your university earns an average rate of return of 5.65 percent on its endowment funds. If a new gift permanently increas

es annual scholarships by $32,000, what was the amount of the gift?
Business
1 answer:
Dennis_Churaev [7]2 years ago
6 0

Answer:

The amount of the gift is 566,371.6814

Explanation:

Average rate of return = Average net profit / average investment

Average rate of return = 5.65% (5.65/100 = 0.0565)

average net profit = 32000

average investment =  unknown

to calculate the amount of the gift which is investment in this case the same formula for Average rate of return will be used i.e

Average rate of return = Average net profit / average investment

0.0565 = 32, 000/ x

cross multiply

0.0565 x = 32,000

divide both sides by 0.0565

x = 32,000/0.0565

32,000/ 0.0565 = x  

x = 566,371.6814

The amount of the gift  is 566,371.6814

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Answer:

Non-controlling interest in net income decreased would have by $6,000

Explanation:

The computation of net income is shown below:-

Profit on Intra-Entity Sales = Revenue - Cost of goods sold

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Profit on Intra-Entity Sales × 25% still in Ending Inventory

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Adjustment to Net Income × 40% for Non-controlling Interest

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8 0
3 years ago
Security M has expected return of 17% and standard deviation of 32%. Security S has expected return of 13% and standard deviatio
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Answer:

0.047424

Explanation:

Given that

Expected return of security M = 17%

Standard deviation of Security M = 32%

Expected return of security S = 13%

Standard deviation of security S = 19%

And, the correlation coefficient = 0.78

So, by considering the above information the co variance is

=  Correlation coefficient × Standard deviation of Security M × Standard deviation of security S

= 0.78 × 0.32 × 0.19

= 0.047424

5 0
2 years ago
What is the formal agreement between two or more countries trade,peace and other matters called?
Arlecino [84]
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3 years ago
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Garfield Company has the following information for the current​ year: Beginning fixed manufacturing overhead in inventory $230,0
Lemur [1.5K]

Answer:

the difference between operating incomes under absorption costing and variable​ costing is $180,000 .

Explanation:

The difference between the two Operating Incomes lies in the amount of Fixed Overheads that has been deferred in Inventory.

So, calculation of the difference will be as follows :

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Which of the following is not true about a cap-and-trade system: Select one:
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Answer:

c. A cap-and-trade system is considered a command and control regulation

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