1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rodikova [14]
3 years ago
7

You have found an asset with 12.60 percent arithmetic average return and a 10.24 percent geometric return. Your observation peri

od is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years?
Business
1 answer:
adoni [48]3 years ago
7 0

Solution:

In years      Best estimate of return            Working note

5                   12.36%              ((5-1)/(40-1)*0.1024)+((40-5)/(40-1)*0.126)

10                   12.06%             ((10-1)/(40-1)*0.1024)+((40-10)/(40-1)*0.126)

20                    11.45%               ((20-1)/(40-1)*0.1024)+((40-20)/(40-1)*0.126)

The formula for the return on assets is calculated by dividing the net income by the total average assets. The profit margin and total asset sales can also be represented as a consequence of this ratio. For the calculation of the total asset return, either formula may be used.

You might be interested in
Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received
Artemon [7]

Answer:

a. $173

Explanation:

The computation of the amount of interest earned in five years is shown below;

But before that following calculations need to be done

As we know that

Simple interest = Present value × rate of interest × time period

= $2,500 × 8% × 5

= $1,000

Now the future value is

Future value = Present value × (1 + rate of interest)^number of years

= $2,500 ×(1 + 8%)^5

= $2,500 × 1.4693280768

= $3,673

Now the compound interest is

Compound interest = Future value - Present value

= $3,673 - $2,500

= $1,173

Now interest on interest is

Interest on interest = Compound interest - Simple interest

= $1,173 - $1,000

= $173

3 0
2 years ago
Question #5
Svetradugi [14.3K]

Answer:

I think industrial markets

7 0
2 years ago
______ is the process of creating a clear, distinctive, and desirable understanding of the product in the consumer's mind relati
Drupady [299]

Answer:

Positioning

Explanation:

This has to do with arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the mind of target consumers.

3 0
3 years ago
Below is a partial portion of Jolex’s adjusted trial balance. Cash 12,692 Accounts Payable 5,443 Retained Earnings 1,593 Sales R
Nataliya [291]

Answer:

$ 5,937.00  

Explanation:

The credit to retained earnings in the year would be the net income for the year which is computed as sales and rent revenue added together minus salaries and wages expense,depreciation expense , utilities expense recorded in the year.

Net income=$13,108+$2,756-$6,639-$1,610-$1,678=$ 5,937.00  

All in all,the credit to retained earnings would be $ 5,937.00  

The net income is the amount by which the overall retained earnings would  increase in the current year

7 0
3 years ago
Derrick Company issues 4,000 shares of restricted stock to its CFO, Dane Yaping, on January 1, 2017. The stock has a fair value
algol [13]

Answer:

Explanation:

The journal entry is shown below:

On January 1, 2017:

Unearned compensation A/c Dr $120,000

     To Common stock (4,000 × $3)                    $20,000

     To Paid-in capital in excess of par value     $100,000

(Being restricted stock is issued and the remaining balance is credited to the paid-in capital)

On December 31, 2018:

Compensation expenses A/c Dr $30,000

     To Unearned compensation                    $30,000

(Being compensation expenses are recorded)

The compensation expenses is computed below:

= (Fair value of stock) ÷ (number of years)

= ($120,000) ÷ (4 years)

= $30,000

8 0
3 years ago
Other questions:
  • The HR department at Tremont Communications oversees the recruitment and training of employees at the firm. As the firm grows an
    7·2 answers
  • You want to save sufficient funds to generate an annual cash flow of $55,000 a year for 25 years as retirement income. You curre
    6·1 answer
  • Emily, whose husband died in December 2013, maintains a household in which her dependent mother lives. Which (if any) of the fol
    5·1 answer
  • A hotel and conference center at a holiday destination can cater for a maximum of 540 tourists and conference attendees per mont
    14·1 answer
  • intext:"A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,0
    5·1 answer
  • What is the correlation coefficient of the relationship between the average weekly hours spent studying and the score on the fin
    6·1 answer
  • Segment Contribution Margin Analysis The operating revenues of the three largest business segments for Time Warner, Inc., for a
    11·1 answer
  • The typical horizontal flows of information in an accounts payable/cash disbursements process might include all of the following
    12·1 answer
  • How much money should be deposited today in an account that earns 3 %compounded semiannually so that it will accumulate to $ 13,
    10·1 answer
  • Please help!!
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!