Answer: They provide a higher rate of return.
They are held for a shorter time. The buyer does not receive periodic interest payments in exchange for a lower purchase price.
Answer:
the real rate of return is 2.78%
Explanation:
The computation of the real rate of return is shown below:
The real rate of return is
(1 + nominal rate of return) = (1 + real rate of return) × (1 + inflation rate of return)
Real rate of return = (1 + nominal rate of return) ÷ (1 + inflation rate of return) - 1
= (1 + 0.0575) ÷ (1 + 0.0289) - 1
= 0.027796676
= 2.78%
hence, the real rate of return is 2.78%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer: Yes. The younger brother will prevail in his claim since he has performed under a valid contract.
Explanation:
Based on the information given, the younger brother will prevail in his claim because he has performed under a valid contract.
Based on the information given, he entered into a valid contract with his elder brother, accepted the offer and complied with its terms from that day forward. Since he performed the contract, he's entitled to the $15000 when after his brother's death.
Answer:
B. C = D
Explanation:
C= Total Capital of the partnership before the admission of a new partner
D= Total capital of the partnership after the admission of the new partner
The purchase occurs outside the partnership (but with the partners approvals)
The partnership will only credit the new partner and debit the seller partner by the amount they agree on.
The partnership received no assets and therefore his capital remains at same value.
Answer: 75%
Explanation:
The fraction of earnings that CCN must be plowing back into the company goes thus:
Growth rate = 9%
Discount rate = 12%
Expected dividend per year = $0.50
Return on equity = 12%
It should be noted that:
Growth rate = plowback ratio × Return on equity
9% = plowback ratio × 12%
Therefore, plowback ratio = 9% / 12%
Plowback ratio = 75%
Therefore, fraction of earnings must CCN be plowing back into the company is 75%.
