Answer:
ROI 87.5%
Explanation:
Return on Investment = return /investment
Total return
50,000 perating income + 20,000 residual income = 70,000 income
The asset could been adquire on lease or through liabilities, this is not investment. The investmetn made is the one done by the shareholders.
Stock Holders equity = investment = 80,000
The shareholders invest this amount to generate
70,000 dollars of return
ROI 70,000/80,000 = 87.5%
Answer:
Contribution margin per unit: $42.9
Total contribution margin: $8,580
Explanation:
The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:
60 regular chairs
140 executive charis
Now the total in sales is:
Regular sales: $6,000
Executive chairs: $23,800
The variable cost of each is:
Regular chairs: $3720
Executive chairs: $17,500
We add up the sales and withdraw from it the total variable cost:
29,800-21,220=8,850
The total contribution margin is equal to $8850.
And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:
8850/200= 42.9
So the contribution margin per unit is 42.9 dollars.
Answer:
The most suitable answer is Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.
Explanation:
Now remember, this is not "guaranteed" as stocks come with higher risks comparing to bonds, yet in US share market, stocks have performed well than the bonds overall. This is because stock prices fluctuate and if the company invested in is performing well, the share prices can sky rocket over a long period while in bonds you don't see this often as they are issued for a specific time and represents the debt capital.
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Answer:
the bond worth today is $651.60
Explanation:
The computation of the amount of bond worth today i.e. present value is to be shown below:
Present value = Amount ÷ (1 + interest rate)^number of years
where,
Amount = $1,000
Interest rate = 5.5%
And, the number of years is 8
Now placing these values to the above formula
So, the worth of the bond today is
= $1,000 ÷ (1 + 0.55)^8
= $651.60
hence, the bond worth today is $651.60
