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ELEN [110]
3 years ago
15

ou believe that you can earn 2% more on your portfolio if you engage in full-time stock research. However, the additional tradin

g costs and tax liability from active management will cost you about .5%. You have an $800,000 stock portfolio. What is the most you can afford to spend on your research?A. $4,000B. $8,000C. $12,000D. $16,000
Business
1 answer:
oksian1 [2.3K]3 years ago
8 0

Answer:

C. $12,000

Explanation:

additional earnigns for active management:

800,000 x 0.02% = 16,000

<em><u>expected  </u></em>active management cost:

800,000 x 0.5% = 4,000

net gain: 12,000

At most, we can spend 12,000 dollars.

Up to this point, the expense are cover by the additional return. bove this threshold the fund will incur in losses from the active management

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At a price of $2,000 per unit, the demand for Rancho 60 mountain bikes from Peyton Bike's Inc. is 300 units, which is the number
Citrus2011 [14]

The statement "bikes shortage should be developed" is correct.

The following information should be considered:

  • In the case when the firm wants to sell the product at a lower price so there should be a product shortage.
  • The demand and supply should not achieve at equilibrium.
  • There is no inelastic demand that should be developed.
  • The no of bikes generated should not be increased.

Therefore we can conclude that The statement "bikes shortage should be developed" is correct.

Learn more about the product shortage here: brainly.com/question/12596577

6 0
3 years ago
What payroll deductions might change depending on the state you live in
Blizzard [7]
State and local taxes
6 0
3 years ago
A card which requires the cardholder to pay a sum of money equal to the credit limit is called a
Brrunno [24]
The answer is Credit card.

Credit card is a small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
5 0
3 years ago
Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu
just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,  

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula

a. The pretax cost of debt is

= 3.65%  × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

= 4.745%

4 0
3 years ago
The particular market segment your company is trying to sell your products or services to is your _________.
Dafna11 [192]
Should be target market
3 0
3 years ago
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