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omeli [17]
3 years ago
14

Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash op

erating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________. multiple choice
Business
1 answer:
yaroslaw [1]3 years ago
6 0

Answer:

17.5%

Explanation:

depreciation = 400,000 / 5 = 80,000

return = $250,000 - %100,000 - $80,000 = 70,000

70,000 / 250,000 =

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Which of the following statement(s) is(are) true regarding the variance of a portfolio of two risky securities? I) The higher th
andre [41]

Answer:

The degree to which the portfolio variance is reduced depends on the degree of correlation between securities is the correct answer.

Explanation:

3 0
3 years ago
A Nike Hoodie has a retail price of $99.00 and it costs the retailer $49.50. What is the mark-up
guajiro [1.7K]

Answer:

100%

Explanation:

Mark-up is the difference between selling price and cost price

Selling price =$99.00

Cost price = $49.50

Mark up = $99- 49.50

=$49.50

As a percentage

= $49.50/$49.50 x 100

= 1 x 100

= 100%

6 0
3 years ago
Rohan wants to buy part of a company, and is interested in stocks. He knows that his favorite company, Apple, is traded on the s
hoa [83]

Answer:

Yes, he can buy stock in Apple.

Explanation:

8 0
2 years ago
Far Side Corporation is expected to pay the following dividends over the next four years: $13, $12, $6, and $3. Afterward, the c
Fudgin [204]

Answer:

e. $89.83

Explanation:

Calculation to determine the current share price

First step is to calculate the Value after year 4 using this formula

Value after year 4=(D4*Growth rate)/(Required rate-Growth rate)

Let plug in the formula

Value after year 4=(4*1.05)/(0.1-0.05)

Value after year 4=$84

Now let calculate the current share price using this formula

Current share price=Future dividend and value*Present value of discounting factor(rate%,time period)

Let plug in the formula

Current share price=16/1.1+12/1.1^2+7/1.1^3+4/1.1^4+84/1.1^4

Current share price=$89.83(Approximately)

Therefore the current share price is $89.83

4 0
3 years ago
What is plasticity? How does it apply to development?
yulyashka [42]
The ability of an organism to change in its environment. It applies to development by environmental interactions and neural changes influenced by learning.
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3 years ago
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