Choose the correct definition of purchasing power parity.

An investor purchased 100 shares of the cdl growth and income fund 3 years ago when the pop was $12 and the nav was $11.50. all

Norma-Jean [14]

The investor will show a capital loss of $155.

We gather the following information from this question:

Pop of the fund three years ago : $12

NAV of the fund three years ago : $11.50

Current Pop : $11

Current NAV : $10.45

Number of shares : 100 shares.

We need to calculate capital loss or gain on the 100 shares in the mutual fund.

While taking the cost per unit, we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop.

Similarly, while selling the shares, the shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day on which he wants to sell.

So, the formula to calculate capital gain or loss is:

$Capital gain or (loss) = (NAV per unit at liquidation - POP at purchase ) * No. of shares$

$Capital gain or (loss) = ($10.45 - $12 ) * 100$

$Capital gain or (loss) = ($155)$

3 0

3 years ago

In the small country of Economerica, there are 6 thousand people employed, 1 thousand people unemployed, and 3 thousand people o

irakobra [83]

Answer: B. 20.00%

Explanation:

Unemployment rate does not include those who have given up on finding a job.

Unemployment rate = Unemployed people / Labor force

Unemployed people:

= Original unemployed + half the new graduates

= 1,000 + (1,000 / 2)

= 1,500 people

Labor force:

= Unemployed + employed people

= 1,500 + 6,000

= 7,500 people

Unemployment rate:

= 1,500 / 7,500

= 20%

3 0

3 years ago

6. The motivation people feel to buy a product

mojhsa [17]

The correct answer would be Incentive.
Incentive is a thing that motivates or encourages one to do something.

3 0

3 years ago

Lacey Company prepared the tabulation below at December 31, 2022. Net Income $310,000

valentinak56 [21]

Answer:

Net cash provided by operating activities is $325,000.

Explanation:

Lacey Company

Cash Flow Statement (Operating Activities Only)

December 31, 2022.

Details Amount ($)

Net Income 310,000

Depreciation expense 45,000

Increase in accounts receivable (55,000)

Decrease in inventory 12,000

Increase in accounts payable 6,000

Increase in prepaid expenses (4,000)

Decrease in income taxes payable 3,500

Gain on disposal of land 7,500

Net cash provided (used) by operating activities  325,000 

5 0

3 years ago

19. An investor has purchased a property that is giving him a 10% rate of return. Potential gross rents total $10,000.00 a month

gogolik [260]

Answer:

the market value of the property is $628,300

Explanation:

The computation of the market value of the property is shown below;

Gross rent $10,000 × 12= $120,000

Now

= $120,000 × .92 (occupancy rate)

= $110,400

After that

= $110,400 - $47,570

= $62,830

And ,finally the market value of the property is

= $62,830 ÷ 0.10

= $628,300

hence, the market value of the property is $628,300

4 0

3 years ago