Answer:
Percentage of total return = 7.93%
Explanation:
As per the data given in the question,
Number of share = 160
Value = $27 per share
Gain distribution = $0.14 cent per share
Market value of fund = $25 per share
Total return for investment = $0.14 × 160 + ($27 - $25) × 160
= $342.5
The value of total return percentage = $0.14 × 160 + ($27 - $25) × 160 ÷ (160 × $27)
= 0.0793
=7.93%
Answer:
$13,290.89 and $15,734.26
Explanation:
In this question we have to use the Present value function which is shown on the attachment below:
In the first case
Provided that
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
NPER = 48 months
PMT = $350
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $13,290.89
In the second case
Provided that
Future value = $0
Rate of interest = 12% ÷ 12 months = 1%
NPER = 60 months
PMT = $350
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $15,734.26
Answer:
a. the prices should have risen, but production should not have changed.
Explanation:
In the case when the money supply is expanded after considering the discoveries of gold so here the prices are increased due to which the economy as the higher employment and the production level. But it is not consistent with the monetary neutrality as the prices are increased but the production level remain same or unchanged
The correct answer should be that <span>the total surplus increases but by less than the amount of the tax. This happens if the tax is not larger than the producer surplus in which case it would negate and the total would not grow at all. This doesn't happen however since imposing such higher taxes is impossible and riots would surely happen.</span>
Answer: 13.26%
Explanation:
Year 0 Investment = $385,000
Incremental Cash flow every year = Cashflow if owned - Cashflow if leased
= 164,000 - 133,000
= $31,500
Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property
= 31,500 + 750,000
= $781,500
Using Excel and the IRR function, the rate is = 13.26%