Domestic gross product (GDP) is used for overall monitoring of an economy. In this regard, it measures the well-being of the society.
In the current scenario, the funds invested was $3 million while the overall value of the harvest was $8 million. In this regard, the overall contribution to the GDP in 2014 due to the transactions described is the overall harvest and that is $8 million worthy of cereal.
Answer:
The asset’s anticipated percentage rate of return is 5%
Explanation:
Rate of return is the annual return that an investor earns on an Initial investment in an asset.
RatReturn on Asset = Expected selling price - Initial Purchase price
Return on Asset = $1,050 - $1,000
Return on Asset = $50
Rate of return = Return on Asset / Initial Purchase price = $50 / $1,000 = 0.05 = 5%
<span>For the amount invested in the 20 year annuity immediate,
the return will be;
r/(1 - (1+r)^-n) = 0.05/(1- 1.05^-20)
= 0.0802425872
= 8.02425872%
Now, return on perpetuity-immediate = 5%
So, 5% + </span>8.02425872% = 13.02425872<span>
for equal returns from both investments,
X = 5/(13.02425872) x 640,000
= $245,695.365
= $ 245,695.36 </span>
Answer:
the number of shares to be used in computing basic EPS is 2,100,000.
Explanation:
Basic Earnings Per Share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks
<u>Weighted Average Number of Common Stocks Calculation :</u>
Common Stocks Outstanding on 1 January 2,000,000
Additional Shares 9/12 × 100,000 75,000
Additional Shares 3/12 × 100,000 25,000
Weighted Average Number of Common Stocks 2,100,000
