1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sever21 [200]
2 years ago
12

8. Effective Yield. A US investor obtain British pounds when the pound is worth $1.50 and invest in a one year-money market secu

rity that provides a yield of 5 percent (in pounds). At the end f one year, the investor converts the proceeds from investment to dollars at the prevailing spot rate of $1.52 per pound. Calculate the effective yield.
Business
1 answer:
Juliette [100K]2 years ago
4 0

Answer:

6.4%

Explanation:

money invest = $1.50 or 1£

interest earned = 1£ x 5% = 0.05£

total returns = 1.05£

now we convert them back to dollars = 1.05£ x $1.52/£ = $1.596

effective yield = (total return - initial investment) / initial investment = ($1.596 - $1.50) / $1.50 = 6.4%

You might be interested in
?excess weight, especially ____, increases cancer risk
Sliva [168]
Excess weight, especially excess fat are prone to cancer. This is particularly applicable to obese people who do not exercise regularly. Excess body fat affects health in metabolic reactions, hormone secretions and the immune system. Studies have already shown that 1 out of 5 cancer patients have excess body weight.
8 0
3 years ago
Given the following information, prepare an income statement for the Dental Drilling Company.
dmitriy555 [2]

Answer:

Results are below.

Explanation:

<u>Giving the following information:</u>

Selling and administrative expense $90,000

Depreciation expense 75,000

Sales 621,000

Interest expense 46,000

Cost of goods sold 231,000

Taxes 50,000

<u>With the information listed above, we need to make an income statement following the structure below:</u>

<u></u>

Sales= 621,000

COGS= (231,000)

Gross profit= 390,000

Selling and administrative expense= (90,000)

Depreciation expense= (75,000)

Interest expense= (46,000)

Eearning before taxes (EBT)= 179,000

Taxes= (50,000)

Net operating income= 129,000

8 0
3 years ago
Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $100,000 in sales during the seco
nydimaria [60]

Answer:

c) $20,000.

Explanation:

The computation of the estimated ending inventory is shown below:

We know that

Cost of goods sold = Beginning inventory + purchase made - ending inventory

And, the

Sales - gross profit = Cost of goods sold

$100,000 - $100,000 × 30% = Cost of goods sold

So, cost of goods sold would be

= $100,000 - $30,000

= $70,000

Now the ending inventory would be

$70,000 = $18,000 + $72,000 - ending inventory

$70,000 = $90,000  - ending inventory

So, the ending inventory would be

= $90,000 - $70,000

= $20,000

5 0
3 years ago
Question 4 of 10
ExtremeBDS [4]
I think the answer is either a or c
7 0
1 year ago
In a $1031 like-kind exchange, Rafael exchanges a business building that originally cost $346,800. On the date of the exchange,
Andreyy89

Answer:

A. $52,020

B. $0

C. $208,080

Explanation:

a. Computation of Rafael's realized gain on the exchange

Using this formula

Realized gain=Fair market value -Adjusted basis

Let plug in the formula

Realized gain= $190,740-$138,720

Realized gain=$52,020

Therefore a. Rafael's realized gain on the exchange is $52,020

b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that

NO BOOT WAS RECEIVED

c. Computation for Rafael's $1245 depreciation recapture Amount

Using this formula

Depreciation recapture Amount=Equipment originally cost -Adjusted basis

Let plug in the formula

Depreciation recapture=$346,800-$138,720

Depreciation recapture=$208,080

Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property

4 0
3 years ago
Other questions:
  • You've collected the following information about Molino, Inc.: Sales $ 215,000 Net income $ 17,300 Dividends $ 9,400 Total debt
    10·1 answer
  • Explain how accrual accounting differs from cash basis accounting if:A. Prepaid insurance beginning $400B. Payments for insuranc
    9·1 answer
  • Which term refers to the first level of a product, which depends on the customer value it generates?
    5·1 answer
  • Retained earnings:
    13·1 answer
  • A client with renal colic is scheduled for extracorporeal shock-wave lithotripsy. The night before the procedure, the client put
    9·1 answer
  • 1. The textbook describes how Political, Economic, and Cultural factors can influence international logistics. In terms of compl
    5·1 answer
  • Please Help. Career Explorations
    6·1 answer
  • An organization with customer-focused design with the inverted organization structure puts the empowered front-line workers at t
    5·1 answer
  • According to the cross-price elasticity of demand, when the price of DVD players drops, the demand for DVDs is likely to
    5·1 answer
  • ________ are a form of tax and spending rules that can affect aggregate demand in the economy without any changes in legislation
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!