The rate of return after 1 year is 25%.
An internal indicator of the return on investment in a project is the rate of return. The interest rate is the imposed cost for borrowing money from lenders. The average rate of return approach reduces outlier statistics in data sets since it is based on averages. In long-term averages, when numerous years of gains can lessen the impact of a single year of losses, this is especially helpful.
Calculation:
When 700 shares are sold short at $30 a share, the sale price is:
=700 * $30
= $ 21,000
The necessary margin for a short sale is 40%.
It denotes the overall margin employed as follows:
=$ 21,000 * 40%
= $ 8,400
Gain from a short sale:
=($ 30 - $ 27) * 700 shares
= $2,100
As a result, the rate of return
Profit earned / Margin used:
= $2,100/ $8,400
= 0.25 or 25%
=25%
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When interest rates increase, the demand for commercial and residential real estate will <u>decrease</u> and the price of real estate will <u>decrease</u>.
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The purpose of eating healthy is because our food contains minerals, nutrients and vitamins absolutely necessary for a healthy body. These nutrients provide us with energy and keep everything in our body working properly.
Answer: Option (A)
Explanation:
Fair values mostly tends to exist for the marketable security but this in terms does not state that this method is applicable. For instance if investor tends to control the entity with the traded equity, therefore the investment is centralized and thereby, fair-value method of accounting is not being used.
Therefore, from the given options we can state that option (A) does not precisely describes the fair value method.
Answer:
See below
Explanation:
First we will compute the ending retained earnings
= Beginning retained earnings $4,615 + Revenue $7,010 - Dividends $500
= $11,125
Then , the total assets of EEE corp. would be
= Capital contributed $820 + Retained earnings $11,125 + liabilities at year end $5,225
= $17,170
