Answer:
D
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Flying Car
Cash flow in year 0 = -$200,000
Cash flow in year 1 = 50,000
Cash flow in year 2 = 50,000
Cash flow in year 3 =80,000
Cash flow in year 4 =100,000
IRR = 13%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Answer:
False
Explanation:
One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflation. It is false to say, if inflation is expected to be relatively high, then interest rates will tend to be relatively low, other things held constant.
Answer:
C) ABC 5% and DEF 5.7%
Explanation:
Data provided in the question:
Purchasing Cost of Stock ABC purchased = $40 per share
Purchasing Cost of Stock DEF purchased = $35 per share
Time = 6 months
Selling price of share of ABC = $42 per share
Selling price of DEF share = $36
Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months
Thus,
Total dividend paid to DEF = $0.5 × 2
= $1
Now,
For ABC
Total return = Selling price - Purchasing Cost
= $42 - $40
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $40 ] × 100%
= 5%
For DEF
Total return = Selling price + Dividend received - Purchasing Cost
= $36 + $1 - $35
= $2 per share
thus,
Holding period return = [ Total return ÷ Purchasing cost ] × 100%
= [ $2 ÷ $35 ] × 100%
= 5.7%
Hence,
option C) ABC 5% and DEF 5.7%.
Answer:
1. Grace was credited for three months taxes.
Explanation:
We need to understand proration. The buyer needs to pay for the taxes the date the property is owed to him, and the seller needs to pay for the taxes till he is having the property. Now he has paid for a year, and the year ends on October 1st. However, he is going to owe the property until Jan 1st. And hence, Grace is credited with the 3 months taxes.
Answer:
A) cognitive
Explanation:
Since in the question it is mentioned that three persons are working for DavidSon international. All three have in their positions in the company but Willy received a small raise after considering the evaluation of last performance
In case when Thad complained regarding the raise so he was experiencing a cognitive attitude that deals in belief, knowledge, thoughts of a particular person
hence, the correct option is A.
