What are two ways to calculate returns for a holding period?

Q: Distinguish the nominal rate of return from the real rate of return.

A:

Q: Is the Compounding Period equal to Payment Period? When does this situation arise?

A: Compounding period is period by which the interest is paid or added to the principal. Payment period…

Q: What is the Total noncurrent assets?

A: Required  What is the Total noncurrent assets

Q: What amount are the fixed

A: We use the high-low method in Cost Accounting to find out the amounts for the fixed and variable…

Q: Explain rate of return on total assets.

A: Accounting Ratio:   It refers to a number expressed in terms of another to establish relationship…

Q: Is the Compounding Period Equal to Payment Period?

A: Compounding period refer to the number of times the interest is paid on the amount deposited or the…

Q: How can we calculate the Times-Interest-Earned Ratio?

A: Times Interest Earned Ratio:  It is one of the solvency ratios. It is a measure to evaluate the net…

Q: What effect does the going-concern (continuity) concept have on the amounts at which long-term…

A: Going concern assumption means that business will continue for a longer period of time and there are…

Q: Which of the following is an input method for recognizing revenue over time?

A: Cost to Cost Method While recognizing the revenue in the contract work there are different method…

Q: Define Times interest earned ratio.

A: Accounting Ratios: A ratio is a number expressed in terms of anther. Ratios are used by…

Q: Return on Assets, or ROA, can be expressed as the product of two ratios.  Which two?

A: Return on Assets: It refers to the ratio that measures the profitability of the company with respect…

Q: What is the internal rate of return?

A: Internal rate of return is the discount rate at which present value of cash inflows equals outflows…

Q: What is the Times-interest·earned ratio?

A: It is important to analyze whether a company has ability to pay off its debts. Means, it is…

Q: What is the relationship between total liabilities and total assets?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What do you mean by Days Payable Outstanding (DPO)?

A: Definition:   Accounts payable: This is the amount owed for the suppliers, or expenses incurred.…

Q: Explain how to calculate time interest earned.

A:

Q: Explain Computing Holding Period Returns?

A: Introduction: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: Amounts of interest depend on lengths of time.Explain how?

A: Interest is also dependent on the base of the length of time A loan taken for a long period of time…

Q: How much is the estimated payment to liabilities with priority?

A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…

Q: Define return on total assets.

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: What is the difference between "change in current assets" and "change in liabilities?

A: Current assets: The assets which could be converted into cash within one year like accounts…

Q: What are some possible financial decisions in which using the Number of Periods (NPER)  formula…

A: NPER is a financial formula or function of excel that signifies the length of term of an investment.…

Q: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: Give an example assuming that  the Compounding Period equals to Payment Period?

A: The representation on the basis of assumption:

Q: How is the Compounding Period equal to Payment Period? Give an example?

A: The annual payment of $7,000 and compounding is to done semi-annually then compounding period 2 will…

Q: Interest cost is calculated by multiplying the______by the ______?

A: Interest cost is calculated by multiplying the  Principle amount by one plus the annual interest…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: When is the Times-Interest-Earned Ratio?

A: The TIE is a calculation of a firm's ability to reach its debt liability based on its current…

Q: Explain an example how to calculate rate of return on total assets.

A:

Q: What are the different terms used to refer to the rate of return?

A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: How is the times-interest-earned ratio calculated, and what does it evaluate?

A:

Q: What is the process of consideration of the payback period?

A: Payback period It computes the required time to recover back the project’s investment by way of…

Q: First holding period return need to be calculated, then annualized return.

A: Annual rate of return for first 10 years (r1) = 0.12 or 12% Annual rate of return for 10 to 15 years…

Q: How is the payback period is calculated?

A: Payback period is the amount or length of time taken by an investment to recover its cost.

Q: What is the Effective Rate per Payment Period?

A: Answer: The effective rate is nothing but the yearly rate under average compounding, will have…

Q: How is times-interest-earned computed?

A: The times interest earned ratio is a measure of a company's ability to meet its debt obligations…

Q: ow do to interpret ( holding period return and hold

A: Holding Period Return  Holding period return (HPR), is the total return earned  by an investment…

Q: What is the amount of tmes-Interest earned?

A: Times Interest Earned: Times interest earned is a ratio which states with how many times the…

Q: what the meaning of current assets ratio?

A: Assets are the rights and resources being held by the business. Assets that are either in cash or…

Q: These investments are initially recorded at purchase price plus transaction costs

A: These investments are initially recorded at purchase price plus transaction costs Answer - Financial…

Q: what give rises to the changes in PBO balance?

A: PBO stands for the Projected Benefit Obligation. It shows how much the company would need in its…

Q: What are the four aspects of rate-of-return analysis?

A: Rate of return analysis tells the rate of return which a investment can give. It carefully analyse…