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2 years ago

An office building has $66,000 of net income and sold for $550,000. What was the rate of return? 12% 8.3% 10% 11.1%

Business

2 answers:

spayn [35]2 years ago

5 0

Answer:

8,3

Explanation:

its less then 10%

horsena [70]2 years ago

4 0

Answer:

Option (a), required return is 12%.

Explanation:

The required return on the investment can be calculated as under:

Required Return = Net Income on Investment / Market Value of Investment

So here, we have net income of $66,000 and Market Value of the investment is $550,000. By putting values in the above equation, we have:

Required Return = $66,000 / $550,000 = 0.12 = 12%

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Cash Conversion Cycle Zane Corporation has an inventory conversion period of 64 days, an average collection period of 28 days, a

wariber [46]

Explanation:

The computation is shown below

The length of the cash conversion cycle is

= Inventory conversion period + average collection period - payable deferral period

= 64 days + 28 days - 41 days

= 51 days

Now the investment in account receivable is

= $2,578,235 ÷ 365 ÷ 28 days

= $197,782.411

And, the inventory turnover ratio is

Inventory turnover ratio = Sales ÷ inventory

where,

Sales = $2,578,235

And, the inventory is

75 = Inventory ÷ [(0.75 × $2,578,235) ÷ 365]

So, the inventory is $397,330.736

Now the inventory turnover ratio is

= $257,8235 ÷ $397,330.736

= 6.488 times

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1 year ago

Country X has currency C1 and Country Y has currency C2. The nominal exchange rate C2/C1 and GDP deflator P for Country X and P*

Kaylis [27]

Answer:

Explanation:

Year percentage increase

2011 21.21162

2012 14.35054

2013 20.62696

b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to; Decline

c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X

d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.

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1 year ago

Which of the following describes the effect of the business cycle on the inflation rate and the unemployment rate? A. The unempl

Pani-rosa [81]

Answer:

The correct answer are option D for both questions.

Explanation:

Recessions is characterized with decrease in consumer and investment spending. During recessions there is a decline in inflation rate and the unemployment rate increases.

While during expansion, there is a boost in economy. So, with increase in investment and production, the unemployment rate falls. There is a rise in inflation rate as well.

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7 0

1 year ago

Read 2 more answers

You manage a hedge fund with $400 million in assets. Your fee structure provides for a 1% annual management fee with a 20% incen

skad [1K]

Answer:

b. $6,600,000

Explanation:

The computation of the fee is shown below:

= Annual management fee + performance management fee

where,

Annual management fee = $400 million × 0.01 = $4 million

And, the performance management fee

= Incentive percentage × hedge fund × excess return

= 20% × $400 million × 3.25%

= $2.6 million

The excess return is

= {($445 million - $400 million) × $400 million - 8%}

= 11.25% - 8%

= 3.25%

So, the fee is

= $4 million + $2.6 million

= $6.6 million or $6,600,000

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1 year ago

Pitkin Enterprises produces animal figurines for children and young adults. For children, it makes hard-to-break figurines that

Kryger [21]

Answer:

The correct answer is letter "A": True.

Explanation:

Multi-segment targeting or market segmentation is the classification a company makes to differentiate its existing or potential customers by features such as age, gender, income or occupation. This is done to provide customers a more tailored product according to their characteristics and demands.

7 0

2 years ago