Answer
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Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The benefit cost ratio is 1.564
Explanation:
The benefit-cost ratio is the ratio of the present value of benefits to the present value of costs. It is thus calculated as follows.
Benefit-cost ratio = Present value of benefits / Present value of costs
Present value of costs = $20,000 + $2,500 (P/A, 10%, 10 years)
= $20,000 + $15,361
= $35,361
Present value of benefits = $9,000 (P/A, 10%, 10 years)
= $9,000 x 6.145
= $55,305
Benefit-cost ratio = $55,305 / $35,361
= 1.564
Answer:
The rate of return on the risky asset is 16% and on treasury bill is 6% and we need a return of (1100-1,000)/1000= 10% or 0.1
If we think of x as the percentage investment in risky asset and 1-x as the investment in non risky asset we can mathematically find what proportion we need to invest in each asset to get this return.
16x+ 6(1-x)=10
16x+6-6x=10
10x=4
x=4/10
x= 0.4
This equation tells us that we should invest 40% in risky assets and 1-x which is 60% in treasury bills. We can test our answer by putting these values and see if the return is 10 %
(0.4*16)+(0.6*6)= Rate of return
Rate of return=10%
10% of 1000 = 100
100+1000=$1100
Explanation:
Answer:
Sarbanes-Oxley Act of 2002.
Explanation:
Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.
Hence, the legislation that requires a broker-dealer's research analysts to be completely separated from that firm's investment banking department is the Sarbanes-Oxley Act of 2002.
<em>It is a law that imposes a stiffer penalty for any securities related law break offence by the accountants, auditors etc by mandating strict reforms to the existing securities regulations. </em>
Answer: Global citizens
Explanation: In simple words, an individual who have better understanding of the world operations than others are called global citizens. These individuals favor global activities with the perception that these will result in more equality around the world either directly or indirectly.
In the given case, Jane purchased a product because of its global nature despite of high prices. Therefore, she clearly is favoring globalization.
Hence, from the above we can conclude that the right option is A.
