Answer:
$4,110 and 12.08%
Explanation:
The computation of the dollar return and the percent return is shown below:
Dollar Return = (Ending Value − Beginning Value) + Income earned
where,
Ending value is
= $126.69 × 300 shares
= $38,007
Beginning value is
= $113.39 × 300 shares
= $34,017
And, the income earned is
= Dividend per share paid × number of shares owed
= $0.40 × 300 shares
= $120
So, the dollar return is
= $38,007 - $34,017 + $120
= $4,110
And, the percentage return is
= (Dollar return ÷ Beginning value) × 100
= ($4,110 ÷ $34,017) × 100
= 12.08%
Answer:
It is cheaper to buy the product.
Explanation:
Giving the following information:
Production:
Direct material $45,000
Direct labor 30,000
Factory overhead (30 % is variable ) 98,000
Buy:
Total cost= $100,000
<u>I will assume that none of the fixed overhead avoidable. Therefore, we will take into account only the variable overhead.</u>
Total variable production cost= 45,000 + 30,000 + (98,000*0.3)
Total variable production cost= $104,400
It is cheaper to buy the product.
Answer:
A.rose making the interest rate fall
Explanation:
According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.
The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.
Answer:
The future value of a 18-year annuity of $2,000 per period where payments come at the beginning of each period is $59,078.
Explanation:
We apply the formula to calculate future value of annuity to find the future value of 18-year annuity as at the beginning of year 18 ( because payment comes at the beginning of the year):
2,000/5% x (1.05^18 -1) = $56,264.77.
We further compound the future value of 18-year annuity as at the beginning of year 18 for one period to come up with the future value of this annuity as at the end of 18 year time:
56,264.77 x 1.05 = $59,078.
So, the answer is $59,078.
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