Answer:
Effective monthly rate 2.076%
Yearly nominal rate: 24,912%
Explanation:
In excel we have to specify the number of period. The amount we borrow and the payment we are doing This should be negative as represent a cash outflow.
This is solving for the rate of the annuity for 95 of 12 months that discounted at X rate gives 1,000 as the present value:
we write on A1
=RATE(12;1000;-95)
and we will receive 2.076% as answer
<em><u>Now to convert into nominal:</u></em>
2.076 x 12 = 24,912%
Answer:
Net income of the company accounted for $400,000
Explanation:
Net income is the income or the amount of residual income from the earnings after deducting all the expense or cost from the sales.
The net income or loss of the company accounted for is computed as:
Net Income or Loss = Net Income - Research and Development cost
where
Net Income amounts to $3,400,000
Research and Development cost amounts to $3,000,000
So, putting the values above:
Net Income or loss = $3,400,000 - $3,000,000
Net Income = $400,000
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
- rRf is the risk free rate
- rM is the return on market
r = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
if a nonbinding price floor is imposed on a market, then the quantity sold will stay the same.
Here are the options of this question:
- then the a quantity sold in the market will stay the same
- quantity sold in the market will decrease
- price in the market will increase
- price in the market will decrease
A price floor is when the minimum price for a good or service is set by the government or an agency of the government. Price floor is usually set for agricultural products. This is done to encourage suppliers of goods and services.
<u><em>Types of price floor</em></u>
- Binding price floor: this is the price floor that is set above equilibrium price. When the price floor is binding, the supply of a good would increase.
- Non-binding price floor: this is the price floor that is set below equilibrium price. When the price floor in nonbinding, there would be no change in supply.
<u><em>An example:</em></u> If the price of a good is $10. The equilibrium price is $12. If the government sets the price as $14. This is a binding price floor. If the price is set below $12, it is a nonbinding price floor.
To learn more about price floors, please check: brainly.com/question/13335147?referrer=searchResults
In addition to slowly releasing plant nutrients over time, organic matter improves soil structure and the soil's ability to hold water. Healthier soils improve crop yields and reduce soil loss from both wind and water erosion, and protect water quality by reducing contaminated runoff.
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