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dalvyx [7]
3 years ago
14

Joseph purchased 100 shares of abcd growth fund for $10.00 per share for a total investment of $1,000. at the end of one year, h

e sold his investment for $11.20 per share. what is his total capital gain?
Business
1 answer:
EleoNora [17]3 years ago
7 0
It is given that Joseph purchased 100 shares of ABCD Growth Fund for a price of $10.00 per share with a total investment of $1,000. At the end of the year he sold his investment for $11.20 per share. Find the total capital gain.

To get the capital gain, compute the total price in which Joseph sold his investment.

$11.20 x 100 = $1,120

Subtract the answer to the total price bought by Joseph
$1,120 - $1,000 = $120

The total capital gain is $120
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Which of the following activities of the central bank do not constitute monetary​ policy? A. Monitoring key stock prices. B. Mon
charle [14.2K]

Answer: Please refer to Explanation

Explanation:

1. A. Monitoring key stock prices.

This does not fall under what the Central Bank does when Monetary Policy is implemented. Monetary Policy allows the government to influence interest rates, monitor financial institutions and indirectly control money supply.

2. Low and predictable levels of inflation.

Under the mandate of PRICE STABILITY, the Fed aims to ensure low and Predictable inflation in the long run to preserve the purchasing power of money.

3. Management of interbank transfers.

The Fed monitors and manages Interbank transfers to protect the financial system.

4. Management of Macroeconomic fluctuations.

- The Fed just embarked on monetary policy to correct the Economy. This was a Macro Economic function as it dealt with the entire economy as a whole.

5. Regulation

The Fed acts as the regulator of Banks and ensures that they follow certain practices and rules to ensure the safety of the banking system and the money belonging to the people who put it there.

5 0
3 years ago
Consider the following projects. Project CO C1 C2 СЗ C4 C5 A -1,000 +1,000 0 0 0 10 B -2,000 |+1,000 |+1,000 +4,000 +1,000 +1,00
Nuetrik [128]

Answer:

a) $3,458

Explanation:

The net present value is the present value of future cash flows discounted at the firm's weighted average cost of capital(which is the appropriate discount rate in this case) minus the initial investment outlay

cost of equity=risk-free rate+beta*(expected market return-risk free rate)

cost of equity=2.5%+1.5*(12%-2.5%)

cost of equity=16.75%

after-tax cost of debt=5.2%*(1-21%)

after-tax cost of debt=4.11%

WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)

weight of equity=value of equity/(value of equity+value of debt)

value of equity=6 billion*$3=$18 billion

value of debt=$5 billion

weight of equity=$18 billion/($18 billion+$5 billion)

weight of equity=78.26%

weight of debt=1-78.26%

weight of debt=21.74%

WACC=(78.26%*16.75%)+(21.74%*4.11%)

WACC=14.00%

present value of a future cash flow=future cash flow/(1+WACC)^n

n is the year in which the cash flow is expected, it is 1 for year 1 cash flow, 2 for year 2 cash flow ,and so on

NPV of project B=1000/(1+14%)^1+1000/(1+14%)^2++4000/(1+14%)^3+1000/(1+14%)^4+1000/(1+14%)^5-2000

NPV of project B=$ 3,458.00  

5 0
2 years ago
True or false? The best way to choose the right social media tool is to think about your business goals, then narrow down your c
DaniilM [7]
Don't completely understand the question, but i'm pretty sure it's TRUE. I think thi sbecause you shoul dalways think about what you are going to post or say because once you do it is there forever. Even if you delete a tweet someone most likely screenshotted it or saved it and could have sent it to countless people for all you know... again not sure if this helped or not, but good luck
4 0
3 years ago
The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of
kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0
3 years ago
While an attribute is an inherent quality or characteristic of a product or service, a(n) _____________ is a result or outcome a
o-na [289]

Answer:

benefit

Explanation:

The characteristics define what a product is for, the benefits define the difference that our product has versus the competitive product and the motivators define how the characteristics and benefits of these products will help each individual customer. To say that the product will help a specific and unique customer is to show the real motivator of the purchase, that is, that specific benefit that by itself will make the customer buy the product. It reaches the end that the customer buys products for different benefits for which the product has been created. For example, a chair is used to sit, but at the same time it can be purchased as a decoration item (chair in the middle of a hallway) or used as a staircase in the kitchen.

4 0
2 years ago
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