Answer: See explanation
Explanation:
a. Which of these expenses can Robert deduct?
From the question, the deductible expenses will include the property taxes and the mortgage interest.
b.Can Anne deduct the $1,500 of property taxes?
Anne cannot deduct the $1,500 of property taxes because the $1500 has already been paid by Robert who is his father.
c.Are the deductions for AGI or from AGI (itemized)?
The deductions are from AGI itemized.
d.How could the tax consequences be improved?
The tax consequences be improved when a cash gift is given to Anne by his father Robert and then pay for her expenses.
Answer:
The correct answer is letter "A": New York, London, and Tokyo.
Explanation:
New York City is still considered the world center for <em>foreign exchange</em> (forex) trading only followed by London and Tokyo. The main currencies being traded are the <em>U.S. dollar (USD), Euro (EUR) </em>and <em>the Japanese yen (JPY)</em>. Some analysts believe soon the <em>Chinese renminbi (CNY)</em> will take an important place among the previously mentioned three currencies.
Answer:
Consumers would not keep buying ice cream at $2.75 because after purchasing a certain amount of ice cream, utility would be maximised and consumers would not value ice cream at $2.75 anymore. Consumers would not purchase a product it the marginal utility that would be derived from consuming the product is less than the price.
According to the law of diminishing marginal utility, as more units of a product is increased, total utility increases but at a decreasing rate.
Explanation:
Marginal utitiy is the increase in utility that is derived from consuming one more unit of a product.
Answer:
The beta of the other stock or stock B is 2.34
Explanation:
The beta of the portfolio is the weighted average of the individual stock betas that form up the portfolio. To calculate the beta for the portfolio, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in the portfolio
As the portfolio is equally as risky as the market, the portfolio beta is assumed to be the same as that of the market and the beta is 1.
The beta is the measure of systematic risk and a risk free asset does not have risk and has a beta of 0.
To calculate the Beta of stock B in the portfolio, we simply put the available values in the formula for the portfolio beta,
1 = 1/3 * 0 + 1/3 * 0.66 + 1/3 * Beta of B
1 = 0 + 0.22 + 1/3 * Beta of B
1 - 0.22 = 1/3 * Beta of B
0.78 * 3 = 1 * Beta of B
2.34 = Beta of B
Thus, the beta of the other stock or stock B is 2.34
Answer:
16.7%
Explanation:
The simple rate of return is the annual net income divided by the initial investment in the proposed investment project.
The annual net income is the annual cash flow of $8,400 minus annual depreciation charge.
annual depreciation=cost -salvage value/useful life=($36,000-$0)/15=$2400
annual net income=$8,400-$2,400=$6000
simple rate of return =annual net income/initial investment
initial investment is $36,000
simple rate of return=$6,000/$36,000=16.7%
The second option,16,7% is the correct answer
