Answer:
return on equity = 10 %
Explanation:
given data
current market price = $80 per share
own invest = $10,000
borrow additional = $10,000
interest rate = 8% per year
invest in stock = $20,000
to find out
rate of return
solution
we know here total investment is 80 × 250 shares = $20,000
and
stock price rise 9 % that is
stock price = 80 × ( 1 + 9%)
stock price = $87.2
and after 1 year investment value will be = 250 × 87.2
after 1 year investment value = $21800
so
payment to broker will be
payment to broker = borrow fund + interest
payment to broker = $10000 × ( 1+ 8% )
payment to broker = $10800
so remaining after payment to broker is = $21800 - $10800 = $11000
so
return on equity is here
return on equity = 
return on equity = 10 %
Answer:
<em>The question is incomplete, complete question is as follows:</em>
Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.
Shift the appropriate curve on the graph to reflect this change.
This change in the tax treatment of interest income from saving causes the equilibrium interest rate in the market for loanable funds to and the level of investment spending to.
Explanation:
<em>To decrease.</em>
Saving is the basis of the loanable finance supply.
<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>
The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.
Whilst the interest rates increase, the quantity required for loanable funds is declining. The equilibrium interest rate is increasing, and the equilibrium amount of borrowed and invested loanable funds is decreasing.
Answer:
the total salon services and products sold
Explanation:
Productivity can be regarded as ratio of output volume to that of the volume of inputs. It give the measurements of
production inputs efficiency, these input could be labour, capital. Productivity helps to know how these inputs are been used in production of given level of output in economy.
Answer: Cash $1,960
Sales returns and allowances $800
Sales discount $40
Accounts receivable $2,800
Explanation:
Sales = $2,800
Sales returns = $800
Discount rate = 2%
The final amount due will be:
= Sales- Sales returns
= $2,800 - $800
= $2,000
Sales discount = 2% × $2,000 = $40
Cash received will be:
Final amount due - Sales discount
= $2,000 - $40
= $1,960
The journal entry will be:
Debit Cash $1,960
Debit Sales returns and allowances $800
Debit Sales discount $40
Credit Accounts receivable $2,800
