Answer:
purchase power: 61,406.86
Explanation:
The stock will grow at 10%
and there is 4% inflation wich erodes the purchase power in the future.
Future value of the stocks:
Amount 134,550.00
Now, we will adjust for inflation of 4% over a period of 20 years:
Nominal: 134,550.00
time 20 years
inflation 0.04
PV 61,406.86
Purhcase power of the stock 20 years from now at expected grow rate of 10% and 4% inflation: 61,406.86
Answer:
The full sentence is the following: Bank capital has both benefits and costs for the bank owners. Higher bank capital <em>reduces </em>the likelihood of bankruptcy, but higher bank capital <em>reduces </em>the return on equity for a given return on assets
The accrued regime will treat this payment as:
C) one month as expense and the other two months as Active
Explanation:
The entity pays three months advance on the first day of the period itself so the whole money is counted towards active and not as counted towards expense in this time.
The three months payment that is due is not thus paid on the first as is required.
It is only paid on the 30th of the first month by then the first month's rent had to have passed by.
So the one month's rent paid would be the expense that is paid up and not the advance while other two will be treated as advance only.