Ask question

Ask question

All categories

2 years ago

9

An investment earns 10% the first year, 15% the second year and loses 12% the third year. Your total compound return over the th

ree years was

1 answer:

Advocard [28]2 years ago

7 0

Answer: 11.32%

Explanation:

Given the above variables, the total compound return can be calculated by;

= (1 + r)(1 + r₂)(1 + r₃)...(1 + rn) - 1

= (1 + 10%)( 1 + 15%) (1 - 12%) - 1

= 11.32%

You might be interested in

Mark or Make is a bourbon distillery. Sales have been steady for the past three years, and operating costs have remained unchang

schepotkina [342]

Answer:

a. No allocation

2019 2020 2021

Gross Profit on Sales 350,000 349,000 351,000

Less: Operating Expense <u>210,000</u> <u>210,000</u> <u>210,000</u>

Gross Revenue 140,000 139,000 141,000

Rent (Prepaid) 0 0 0

Revenue after Rent paid 140,000 139,000 141,000

Less: Corporate Taxes at 30% <u>42,000 41,700 42,300</u>

Net Income <u>$98,000 $97,300 $98,700</u>

<u></u>

Considerations for No Allocation

- Taxes are to be deducted from Gross Profit.

- Rent not to be deducted from Gross Profit.

b. Comprehensive Allocation

2019 2020 2021

Gross Profit on Sales 350,000 349,000 351,000

Less: Operating Expense <u>210,000</u> <u>210,000</u> <u>210,000</u>

Gross Revenue 140,000 139,000 141,000

Rent (Prepaid) <u>60,000</u> <u>60,000</u> <u>60,000</u>

Revenue after Rent paid 80,000 79,000 81,000

Less: Corporate Taxes at 30% <u>24,000</u> <u>23,700</u> <u>24,300</u>

Net Income <u>56,000</u> <u>55,300</u> <u>56,700</u>

Considerations for Comprehensive Allocation

- Taxes are to be deducted from Gross Profit.

- Rent is to be deducted from Gross Profit.

c. No allocation distorts Mark or Make’s Net Income for all three years. This is because if Rent is not allocated taxes will be calculated on Gross Revenue. That is to say, Rent is a Non-Operating Expense and hence is to be deducted from Revenue to Calculate the Taxes. When Revenue is reduced, obviously, the taxes will be reduced. Hence, less income is seen in Comprehensive Income Statement and more Revenue is seen in Simple - Non Comprehensive Statement.

4 0

2 years ago

On December 31, 2018, Gardner Company holds debt securities classified as HTM with a face amount of $100,000 and a carrying valu

Sunny_sXe [5.5K]

Answer:

$2,850

Explanation:

Given the following :

Face value of security = $100,000

Carrying value = $95,000

Effective interest rate = 6%

Interest paid semianually = $2500

The effective interest revenue recognized for the six months ended December 31, 2018 is:

IF effective interest rate = 6%

Semiannual interest = 6% / 2 = 3%

Therefore effective interest revenue for six months will be the product of the carrying value and the interest rate within the six months period :

3% = 0.03

0.03 * $95,000 = $2,850

3 0

2 years ago

g Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to ________. A.

Ludmilka [50]

Answer:

C. modify their products and services to meet the needs and interests of local cultures

Explanation:

Globalization is a phenomenon that enables companies to generate increased profitability and conquer new markets by implementing their businesses in other countries. Therefore, a company that wants to go global through e-commerce needs to modify its products and services to meet the needs and interests of local cultures, as entering an international market requires planning and structuring organizational processes that take into account that each country has their social and cultural particularities, their tastes and needs that are different from each other, which requires an adaptation of a company's products and services, so that they are well accepted and meet the specific needs of that market.

It is then necessary to research, plan and implement a global business strategy that takes local differences into account and includes them in its processes and values.

4 0

2 years ago

Which type of marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marke

Rudik [331]

C. Strategic channel alliance is a marketing channel arrangement is especially good for a firm to use in global marketing where the creation of marketing channel relationships is expensive and time consuming.

When you are in a strategic alliance or strategic partnership, you have an agreement between one another for objectives to be accomplished but still operating as independent entities. When one company partners with another company, knowledge and resources are usually gained to where one or both parties benefit.

5 0

3 years ago

Which type of egoism is the theory that humans are only capable of acting in their own self interest?

anygoal [31]

According to psychological egoism, all actions are driven by self-interest. In other words, it implies that everyone's behavior, actions, and decisions are driven by self-interest. Additionally, it implies that all decisions must be driven by personal gain.

According to psychological egoism, all actions are driven by self-interest. In other words, it implies that everyone's behavior, actions, and decisions are driven by self-interest. Additionally, it implies that all decisions must be driven by personal gain.

A second defense of psychological egoism contends that people always act selfishly because it makes them feel good. For instance, you might assist a turtle crossing a roadway because, if you didn't, you would be concerned for its safety while doing so.

Learn more about psychological egoism here

brainly.com/question/8484382

#SPJ4

5 0

1 year ago