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kirill [66]
2 years ago
15

If a small company invests its annual profits of $150,000 in a stock fund which earns 18% per year, the amount in the fund after

10 years will be nearest to:
Business
1 answer:
kenny6666 [7]2 years ago
5 0

Answer:

the amount in the fund after 10 years will be $785,075.04

Explanation:

The computation of the amount after 10 years is shown below"

As we know that

Future value  = Present value × (1 + rate of interest)^number of years

= $150,000 × (1 + 0.18)10

= $785,075.04

Hence, the amount in the fund after 10 years will be $785,075.04

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Economic Order Quantity computes:
Mamont248 [21]

Answer:

D: Optimum Order size​

Explanation:

Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.

Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.

7 0
3 years ago
In a competitive market, each seller has limited control over the price of his product because a. other sellers are offering sim
777dan777 [17]

Answer:

A.

Explanation:

In a perfectly competitive market, buyers and sellers are free (by definition) to enter or leave the market as they choose.

That is, individuals are neither forced into nor prevented from engaging in a certain business, provided they have the expertise and the financial resources required.

A perfectly competitive market has the following characteristics:

-There are many buyers.

-There are many sellers. Firms can freely enter or exit the market. All sellers sell the same or similar products. It means that the goods offered by the various sellers are largely the same.

-Firms can freely enter or exit the market.

6 0
3 years ago
The monthly rate of return on T-bills is 1%. The market went up this month by 1.5%. In addition, AmbChaser, Inc., which has an e
a_sh-v [17]

Answer:

a; 3%

b; 1%

Explanation:

To answer the question, we proceed as follows;

Firstly, we compute the rate of return:

The rate of return can be calculated using the CAPM model:

According to CAPM,

Rate Of return RE = Rf + β(Rm - Rf)

where, Rf = Risk free rate

Rm = Market return

β = Risk co-efficient

RE = Cost of equity

To find the rate of return, substitute 1% for risk free rate, 1.50% for market return and 2 for beta.

Applying the CAPM model, we get;

Rate of return = 0.01 + 2(0.015 - 0.01)

= 0.02 or simply 2%

Its firm's return due to the lawsuit is $1 million per $100 million initial equity; this means the increase is 1%.

Therefore, the total return should be ;

Total return = 1% + 2% = 3%

If the settlement was expected to be $2 million and the actual settlement has a loss of $1 million, then the firm-specific return would be = 1%

Total return = 2% - 1%

6 0
3 years ago
Read 2 more answers
Pole Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable
Sedbober [7]

Answer:

Explanation:

A)

Future taxable       2019             2020         2021        total

And (deductible) amount

Extra depreciation         400000       400000   400000  1200000

Litigation                                                                   (890000)       (890000)

B)

Journal                                                 Debit                           Credit

Income tax expense

[840000 + (480000-356000)]          208000  

Deferred tax assets(890000×40%)   356000  

Deferred tax liability(1200000×40%)                                      480000

Income tax payable(210000×40%)                                              84000

For any query please comment and

DO GIVE POSITIVE RATING

7 0
3 years ago
A petty cash fund was established with 250 balance it courrently has cash od 45 and petty cash tickets totaling 335 which of the
scoray [572]

Answer:

B.  credit to Cash Short & Over for $15

Explanation:

7 0
3 years ago
Read 2 more answers
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