What are the Advantages and disadvantages of Finding Rate of Return?

Q: How is the acquisition of fixed assets an important activity for a business organization?

A: Fixed assets are the assets that are purchased by a firm for long-term use and the fixed assets…

Q: Calculate the value of output if sales are $13000 million and change in stock is $8800

A: The information being given is:- Sales = $13,000 million Change in stock = $8800 million We have to…

Q: Who, in your opinion is the most influential and important entrepreneur of the last 10 years and…

A: An entrepreneur is a person that develops a business by taking a financial risk in return for…

Q: What would a pure services economy look like? Do you think this is practical fora small country with…

A: The economy has various sectors such as the primary sector, the secondary sector, and the tertiary…

Q: What is the effect of technological innovations on loanable funds market?

A: Technological innovation refers to the situation when a firm is using an advanced technology that…

Q: You have $10,000 available for investment in stock. You are looking for agrowth stock that can grow…

A:

Q: Explain Decision Rule for Simple Investments?

A: The investment is an important aspect that determines the development and growth of the economy. The…

Q: (a) You hold a two period bond that pays a coupon C at the end of each period. The interest rate is…

A: The current market price of a bond is the total of the present values of all types of cash inflows…

Q: Some studies have found that saving is not very sensitive to the rate of return on saving. a.true…

A: Saving is a part of money income that is saved.  Saving = disposable income - consumption

Q: Define the term calculation of a rate of return?

A: In a specific period of time, the net gain or loss experience from an investment is known as the…

Q: explain wheather or not you agree with the following statement" A company has R500 million in a…

A: Economic capital could be a measure of risk in terms of capital. more specifically, it is the amount…

Q: Describe the concept of rate of return?

A: Rate of return is a rate at which investment has earned profit or suffered a loss in terms of…

Q: What is meant by the term cost of living? Define and explain it.

A: Cost of living is a way to calculate the minimum amount of money required to cover basic need of an…

Q: Why is the LLC structure recommended for most small companies that aren’t sole proprietorships?

A: A sole proprietorship is an unincorporated corporation that has only one owner who pays personal…

Q: What is estimation of economic Opportunity cost of capital

A: There are different methods to to estimate the economic opportunity cost of capital. Such as:-…

Q: Write down the importance of capital in three brief paragraphs?

A:

Q: He 1ollswing graph to show the effects on the Market for Loanable Funds of businesses discovering…

A: Answer: Introduction: Demand for loanable funds: the loanable funds are demanded by investors such…

Q: If the zero lower bound binds on a loanable funds graphs, then there is excess A. saving B. bank…

A: The total amount of money that persons and corporations in an economy have decided to save and lend…

Q: Explain cost of capital .

A: Cost of capital = Is the addition of the cost of equity + cost  of the debt as per given

Q: What is the Capital-Recovery Factor?

A: The firm or the business needs to make some investment in the initial period to make the operations.…

Q: A man is considering investing P500.000 open a semi.

A:

Q: If value of output is $550 million and sales is $500 million Calculate change in stock

A: According to the above mentioned question, the values are:- Value of output = $550 million Sales =…

Q: What do you mean by "term spread" ?

A: Different terms are used in economics or finance to indicate the difference between two prices, ask…

Q: Define the term the cost of capital?

A: The cost of capital is a very important term for the term for investors and a company which is the…

Q: Why is the supply of loanable funds upsloping? Why is the demand for loanable funds downsloping?…

A: Loanable funds refer to the set of all forms of credit available in the market including loans,…

Q: Distinguish between Simple investments and Nonsimple Investments?

A: The investments are an important factor for the growth of the economy which cannot grow without the…

Q: What do you mean by capital recovery factor?

A: Capital recovery factor can be explained as the ratio of constant annuity and the annuity's value…

Q: Explain the concept of rate of return?

A: The rate of return, expressed in terms of percentage, can be defined as the net gain or loss on the…

Q: The notion of compound interest means that a) any amount you borrow will accumulate more and more…

A: Interest refers to the cost on the borrowed money or it can also be understood as a reward on…

Q: How is the rate-of-return easier to understand?

A: In a specific period of time, the net gain or loss experience from an investment is known as the…

Q: Describe what is Market interest rate?

A: The rate of interest which is determined by the interaction of demand for and supply of funds in the…

Q: What are the three components of the rate of return?

A: Rate of return is an expected annual income from an investment. It is expressed in terms of…

Q: Suppose the following: Bond A Bond B Face Value $100 $100 Price 98 105 Coupon Rate 7% 12% Which bond…

A: Answer;

Q: Define the term, Principal P?

A: An economic transaction is an agreement between two parties in which one party agrees to change an…

Q: Explain Methods for Finding Rate of Return?

A: The different methods that are used to find rate of return are:   Rate of Return(RoR): It is the net…

Q: What is the opportunity cost to the society of investing in capital?

A: Opportunity cost is nothing but foregoing opportunity of a project when other project is chosen.

Q: In which stage of the product life cycle would we expect to see the most attention given to…

A: Product life cycle theory explains the various stages from which every product has to pass during…

Q: how the capital structure, cost of capital, and dividend decisions are related? You can explain how…

A: The combination of capital kinds that a firm uses to pay its activities is referred to as its…

Q: Describe the different ways to determine the rate of return?

A: Investment Return: The term investment return refers to the yield of the investment. For example, if…

Q: Tell about the related diversification

A: A most prominent differentiation among the various forms of diversification is related…

Q: The ratio of the interest payment to the principal for a given unit of time and usually expressed as…

A: Simple interest => p*r*t/100

Q: If and when the demand of loanable funds shifts to the left:

A: The market for Loanable Funds defines how the borrowing and lending activities take place in the…

Q: What is (a) the highest, and (b) lowest rate of return (in percent) possible?

A: (a)   The possible highest rate of return is infinitive. The reason is that a firm can earn more and…

Q: Explain Return on Invested Capital?

A: Return on Invested Capital (ROIC) is a profitability or performance ratio which aims to measure a…

Q: What impact will increases in income have on the Market for Loanable Funds? A) Decrease Supply B)…

A: Increases in income will lead to more loanable funds in the market, due to increment in income…