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BigorU [14]
3 years ago
10

A project has 70% probability of doubling your investment in a year and 30% probability of halving your investment in a year. Wh

at is the expected rate of return on this investment
Business
1 answer:
GalinKa [24]3 years ago
8 0

Answer:

1.55

Explanation:

When the investment is doubled the return would be 100% and when it is halved, the return would be -50%.

Probability Return

70%             2*100 = 200

30%             0.5*100 = 50

Expected Return = Probability of Doubling Investment*Rate of Return on Doubling of Investment + Probability of Halving Investment*Rate of Return on Halving of Investment

Expected Return = 70%*200% + 30%*50%

Expected Return = 0.7*200% + 0.3*50%

Expected Return = 1.4 + 0.15

Expected Return = 1.55

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A share of preferred stock currently sells for $120. it offers the investor a dividend rate of 8%, on a par value of $100. if th
victus00 [196]
Dividend per share= 8% of 100 = 8
for 500 share its 8 multiply by 500 = 4000
Normally the annual dividend amount is stated as a percentage of the par value, which is the original asking price of the stock


((dividend yields: Yield is the effective interest rate you receive if you buy shares of the preferred stock.
The yield is equal to the annual dividend divided by the current price.
in this case
dividend yield is 8 divided by 120
answer= 0.067= 6.7%))
4 0
3 years ago
Mathrans, a textile firm, wants to hire two costume designers for a new movie project. To precisely determine the future job per
irga5000 [103]

Answer:

<u>Validation</u>

Explanation:

The validation process occurs when an organization needs to know the skills and performances of some job seekers. Through a test with selected measures, such as construction measures, content and criteria, it is possible for the company to know and predict if a candidate is able to perform the tasks assigned to the position he is running.

7 0
3 years ago
A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be
dybincka [34]

<u>Solution:</u>

The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.

Price = 2.5 * 2.50 = $6.25

Variable cost = $2.50

Fixed cost = $220,000

Break-Even Volume = Fixed cost / (Price - Variable cost)

                                  = $220.000 / (6.25 - 2.50)

Break-Even Volume = 58,667 units

4 0
3 years ago
Restaurant Brands International Inc. (RBI) describes itself as follows in its first Restaurant footnote: "We franchise and opera
Tasya [4]

Answer and Explanation:

Data provided

Depreciation = $185 million

The Journal entry is shown below:-

Depreciation expense  $185 million  

      To Accumulated depreciation $185 million

(Being depreciation expenses is recorded)

Here we debited depreciation expense as expenses are increasing whereas we credited the accumulated depreciation as the assets decreasing.

5 0
3 years ago
PLEASE HELP ASAP!! CORRECT ANSWER ONLY PLEASE!!!
nlexa [21]

Answer:

A

Explanation:

8 0
3 years ago
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