Answer:
1) The transaction cost of both he bank deposit and mutual fund are almost equal as transaction in both can be made by visiting a branch or using internet banking or brokering.
2) The risk for the bank deposits are lower thank mutual funds because even thought the mutual fund is highly diversified, its value can still decline because of changes in market or some market crash like the 2008 recession, where as the money in the bank remains intact
3) The liquidity is higher for bank deposits because money can be withdrawn instantly, whenever the depositor wants, where as the liquidity for mutual funds is a bit lower as it takes a couple of business days to make transactions.
Explanation:
Answer: she should buy the cheaper house with interest because even with interest its still prob cheaper and you didnt give the interest amount
Explanation:
OPEC successfully raised the world price of oil in the 1970s and early 1980s, primarily due to A. an inelastic demand for oil and a reduction in the amount of oil supplied.
Inelastic demand is where the demand for a product does not increase or decrease with the fall or rise in its price. When someone believes that a product is inelastic to them, then their demand won't change even though the price changes. Since OPEC was able to raise the oil price and it was still consumed, it is a product of inelastic demand.
Answer:
About 84.2
Explanation:
8% of 78.00 = 6.24
78.00 + 6.24 = 84.24 (Around 84.2
apologies if wrong
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million
