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vagabundo [1.1K]
2 years ago
11

Question 9 Suppose money invested in a hedge fund earns 1% per trading day. There are 250 trading days per year. What will be yo

ur annual return on $100 invested in the fund if the manager allows you to reinvest in the fund the 1% you earn each day
Business
1 answer:
11111nata11111 [884]2 years ago
5 0

Answer:

1103.22%

Explanation:

The value of the investment at the end of the year assuming  250  trading days per year can be computed the future value formula provided below:

FV=PV*(1+daily return)^n

PV=initial investment=$100

daily return=reinvestment rate=1%

n=number of trading days in a year=250

FV=$100*(1+1%)^250

FV=$ 1,203.22

Annual return=( 1,203.22/$100)-1

Annual return=1103.22%

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Lake Corporation reported the following amounts in its income statement: Sales revenue $ 440,000 Advertising expense 60,000 Inte
goldenfox [79]

Answer:

Lake's operating income is $120000

Explanation:

Operating income is the income generated by the operations of company less its operating cost. Another name that is used for operating income is Earnings before interest and tax (EBIT). The charges or income relating to non operating or financing activities is not included in the operating income and nor is the tax deduction included.

The formula for operating income = Sales - Cost of Sales - operating expenses.

The operating expenses here, are = Advertising + Salaries + Utilities

Thus, operating expenses = 60000 + 55000 + 25000 = $140000

The Operating Income = 440000 - 180000 - 140000 = $120000

3 0
2 years ago
Read 2 more answers
United Resources Company obtained a charter from the state in January of this year. The charter authorized 218,000 shares of com
alina1380 [7]

Answer:

United Resources Company

Stockholders' Equity Section of the Balance Sheet at the end of the year:

Authorized share capital:

Common stock, $2 par, 218,000 shares

Issued and Outstanding shares:

Common stock, $2 par, 66,000 shares     $172,000

Additional paid-in capital - common stock  642,000

Treasury stock, $2 par, 20,000 shares       (40,000)

Retained earnings                                        494,000

Total equity                                              $1,268,000

Explanation:

a) Data and Analysis:

Authorized share capital:

Common stock, $2 par, 218,000 shares

Net income for the year = $494,000

Transactions:

a. Cash $1,079,000 Common stock $166,000 Additional Paid-in Capital - Common $913,000

83,000 shares of the common stock in an initial public offering for $13 per share.

b. Treasury stock $46,000 Additional Paid-in Capital- Common stock $322,000 Cash $368,000

23,000 shares of the previously issued shares for $16 per share.

c. Cash $57,000 Common stock $6,000 Additional Paid-in Capital - Common stock $51,000

3,000 shares of treasury stock for $19 per share.

8 0
2 years ago
What is a benefit of online banking
liberstina [14]
A benefit of online banking is that you can check your account activity anywhere you're at and when ever you want with out having to go personally to the bank. online banking is available 24/7
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3 0
3 years ago
Read 2 more answers
Suppose MBI Co. is expected to pay a $0.60 dividend per share next year. Wall Street analysts project the stock will sell for $3
neonofarm [45]

Answer:

$32.60

Explanation:

Data provided in the question:

Dividend paid per share = $0.60

Market price per share = $35.75

Required returns, r = 11.5% = 0.115

Now,

Current price = [ Dividend paid per share + Market price per share ] ÷ ( 1 + r )

= [ $0.60 + $35.75 ] ÷ ( 1 + 0.115 )

= $36.35 ÷ 1.115

= $32.60

3 0
3 years ago
Several factors can contribute to long-term organizational success. one is the establishment of a core ideology that collins and
andrew11 [14]

Original Source Material

Student Version

Merck, in fact, epitomizes the ideological nature--the pragmatic idealism--of highly visionary companies. Our research showed that a fundamental element in the "ticking clock" of a visionary company is a core ideology--core values and a sense of purpose beyond just making money--that guides and inspires people throughout the organization and remains relatively fixed for long periods of time.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Several factors can contribute to long-term organizational success. One is the establishment of a core ideology that Collins and Porras (2002) describe as "core values and sense of purpose beyond just making money" (p. 48). Also, the importance of a visionary leader that guides and inspires people throughout the organization and remains relatively fixed for long periods of time is hard to over emphasize.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

This is not plagiarism.

Answer: Option 3.

<u>Explanation:</u>

Plagiarism in very simple words is the copying of the content of the document that has been written by some one else in to your own document. During this copying the due acknowledgement is also not given to the document from which it has been taken.

The document that has been talked about in the question above is not an example of plagiarism. The proof for this is the due acknowledgement given to the references from whose document the content has been taken into the document.

8 0
3 years ago
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