Each of these is a retirement account, except <u>a mutual fund</u>.
The answer is (B) a mutual fund
Answer:
The answer is $10.42 per share
Explanation:
Book value per share is the value placed on a share as shown in the book (Financial statement of the company) while market value per share is the value viewed by the public.
Common equity = $5,125,000
Outstanding shares = 300,000 shares
Book value per share = common equity/outstanding shares
$5,125,000/300,000 shares
= $17.08 per share
Market price is $27.50 per share
Therefore, the difference is :
$27.50 - $17.08
= $10.42 per share
Answer:
1. True
Explanation:
The computation of the depreciation for 1998 under the double declining balance method is shown below:
First we have to find the depreciation rate which is
= One ÷ useful life
= 1 ÷ 4
= 25%
Now the rate is double So, 50%
In year 1, the original cost is $60,000, so the depreciation is $7,500 after applying the 50% depreciation rate and the 3 months
And, in year 2, the depreciation expense is
= ($60,000 - $7,500) × 50%
= $26,250
Desire, Ability, and Willingness.
Desire- do people want to buy the product?
Ability- are they able to buy it? (do they have enough money, etc)
Willingness- are people willing to buy this product instead of something else?
Answer:
3. a smaller opportunity cost of investment and so planned investment spending increases.
Explanation:
Opportunity cost is defined as the foregone alternative when a person undertakes an activity. For example going to work is the opportunity cost of staying at home to rest.
Opportunity cost is weighed against activity to be undertaken.
In this instance the opportunity cost of investment is the alternative foregone by investors.
As interest rate decreases it makes investment attractive because the cost of doing business decreases. This make other alternatives less attractive (smaller opportunity cost).
Investment now increases.
The monetary regulation agencies use interest rate a tool to either boost or reduce investment. The higher the interest rate th lower investment, and vice versa
