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3 years ago

If you earned a 2.6% return on your savings with a 25% tax rate, what is your after-tax rate of return?

Business

1 answer:

mamaluj [8]3 years ago

5 0

Answer: 1.95%

Explanation:

Your after-tax return can be calculated by the formula;

= return * ( 1 - tax rate)

= 2.6% * ( 1 - 25%)

= 1.95%

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What is the economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in

ZanzabumX [31]

The economic term for the practice of assigning small parts of a complicated job to individual workers who specialize in doing there just smart part is called specialization. Specialization is achieved when the assigned personnel is master of his art and the resources are focused on the particular field. This leads to an efficiency called allocative efficiency.

8 0

3 years ago

If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people t

vitfil [10]

Answer:

If the money wage rate increased from $40.00 to 45.24 and hour and consumer prices rose by 16%, we would expect _______ people to try to find a job and employed people to want to work _______ hours.

a. more; longer.

The____ would _____.

b. quantity of labor supplied; increase.

Explanation:

Generally, when wage rates increase, this will led to an increase in the inflation rate. The problem is what happens if wages increase less than the inflation rate. This means that real wages will actually decrease once we adjust them to inflation. This will cause more people trying to get a job or working longer hours just to be able to pay for the same amount of goods as before.

In this example, the wage rate increased by 13.1%, but the inflation rate increased by 16%, so real wages decreased.

8 0

3 years ago

Joe Donney operates a roller skating center. He has just received the monthly bank statement at August 31 from Citizens National

dlinn [17]

Answer:

Donney actually have $1,577 at August 31, 2014

Explanation:

Prepare a Bank reconciliation to determine the accuracy of the Cash Balance using the following steps

Step 1

Update the Cash Book (Bank Column) Balance

Cash Book (Bank Column)

Debit :

Balance as at August 31 $1,620

Rent collection $375

Total $1,995

Credit :

Service charge $9

Dishonored Checks $137

Printing Charge $20

Error : Understatement $252

Balance as per updated CB $1,577

Total $1,995

Step 2

Prepare a Bank Reconciliation Statement

Bank Reconciliation Statement as at August 31

Balance at Bank as per updated Cash Book $1,577

Add Unpresented Checks $756

Less Lodgements not yet credited ($1,695)

Balance as per Bank Statement $638

Conclusion :

Now that we have reconciled the Updated Cash Balance of $1,577 to the Bank Statement we can safely say Donney actually has $1,577 cash at August 31, 2014.

3 0

3 years ago

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know

babymother [125]

Answer:

Sharpe ratio = 0.20

Treynor ratio = –0.005

Explanation:

Note: See the attached excel file for the calculations of average rate of returns, standard deviations and beta used in the calculation below.

a. Calculation of Sharpe ratio

Sharpe ratio refers to a investment measurement that employed to measure the an investment actual that has been adjusted for the risk associated with the investment.

Sharpe ratio can be calculated using the following formula:

Sharpe ratio = (Average fund rate - Average Risk Free rate) / Standard deviation of fund rate = (5.46% - 2.40%) / 15.05% = 0.20

a. Calculation of Treynor ratio

Treynor ratio refers to investment measurement that is calculated to show the risk of certain investments after the volatility of the market has been taking into consideration.

Treynor ratio can be calculated using the following formula:

Treynor ratio = (Average market return rate - Average Risk Free rate) / Beta = (1.96% - 2.40%) / 87.53% = –0.005

Download xlsx

5 0

3 years ago

In one or two sentences, describe why decisions are based on expected costs and benefits.

kow [346]

Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.

7 0

3 years ago