Answer:
The correct answer is "32.076%".
Explanation:
Given:
Initial investment,
= $500,000
Cash inflows,
= $500,000
The floatation cost will be:
= ![500,000\times 6 \ percent](https://tex.z-dn.net/?f=500%2C000%5Ctimes%206%20%5C%20percent)
=
($)
The total cost will be:
= ![Initial \ investment+Floatation \ cost](https://tex.z-dn.net/?f=Initial%20%5C%20investment%2BFloatation%20%5C%20cost)
= ![500000+30000](https://tex.z-dn.net/?f=500000%2B30000)
= ![530000](https://tex.z-dn.net/?f=530000)
hence,
The rate of return will be:
= ![\frac{Inflows}{Cost} -1](https://tex.z-dn.net/?f=%5Cfrac%7BInflows%7D%7BCost%7D%20-1)
= ![\frac{700000}{530000} -1](https://tex.z-dn.net/?f=%5Cfrac%7B700000%7D%7B530000%7D%20-1)
= ![\frac{700000-530000}{530000}](https://tex.z-dn.net/?f=%5Cfrac%7B700000-530000%7D%7B530000%7D)
= ![0.32076](https://tex.z-dn.net/?f=0.32076)
=
(%)
Answer:
The people in an economy have $25 million in money. There is only one bank where they deposit their money and it holds 10% of the deposits as reserves. What is the money multiplier in this economy?
D. 10
Explanation:
10% of $25, 000, 000= $2,500,000
Money multiplier in this economy is by 10
answer:
competition, goodwill with trade partners, and importation of goods
The Arrive Alive campaign was launched to prevent road accidents or at least lessen the instances of accidents due to drunk driving and reckless driving.
The advantages of this campaign are:
1. It promotes awareness among drivers to drive safely.
2. It educates drivers on the rules and safe acts when on the road.
The disadvantages of this campaign are:
1. It does not completely eliminate the risk of accidents due to drunk and reckless driving. It merely 'educates' the drivers about safe acts.
2. It still allows the drivers to drink and drive but at 'allowable alcohol level' which does not help at all.
In the end, the Arrive Alive campaign failed.
<u>Calculation of Edelman's market/book ratio:</u>
The market/book ratio is calculated with the help of following formula:
Market/book ratio = Market price per share / Book value per share
The Book value per share can be calculated as follows;
Book value per share =Common Equity/ Shares of common stock outstanding
= 8,000,000,000 /500,000,000
= 16
Hence ,
Market/book ratio = 25/16 = 1.56
Hence, Edelman's market/book ratio is <u>1.56</u>