What is the difference between cumulative return and annualized return/CAGR). Provide an example

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

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Q: a) Find aggregate planned expenditure for each level of real GDP. b) What is the equilibrium level…

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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: Define Times interest earned ratio.

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

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: s. What is the geometric average return for this time period?

A: Geometric Average: It is the average return for a set of values computed with the products of the…

Q: e Give an expression for the value, at the given valuation date, of the cásh flow shown.

A: solution : the given question is related to the concept of time value of money The future cash…

Q: the choice of alternatives using both the Annual Worth and Present Worth approaches.

A: Present Worth is the present value of all costs incurred over the useful period of life. Annual…

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: irm's current year gross profit margin?

A: Solution: Gross profit Margin= Net Sales - Cost of goods Sold  x 100…

Q: What is the effective annual rate (EAR) and what is the purpose.

A: The effective Annual Rate (EAR) is the rate of interest actually earned on an investment or paid on…

Q: Which are the two computational schemes for calculating this earned interest yield?

A: The two computational schemes for calculating the earned interest yield are compound interest scheme…

Q: The difference between gini coefficient of market income and gini coefficient of disposable income…

A: The difference between gini coefficient of market income and gini coefficient of disposable income…

Q: Does the accrual accounting rate-of-return method consider income earned throughout a project's…

A: The accrual accounting rate-of-return(ARR) formula splits the average income of an asset by the…

Q: Explain APY (annual percentage yield)?

A: APY (Annual Percentage Yield):   It is the real return rate that is earned on an investment during a…

Q: What is an annual report?

A: The accounting is a process to record the transactions of the business, and prepare the financial…

Q: record in the table below. Calculate the change in market value OE, change in valuation equity and…

A: Change is market value is the value which has been changed during the year as compared with the…

Q: What is the Annual Equivalence Analysis?

A: The criteria for annual equivalent analysis provides a basis for computing the value of an…

Q: n computing for the comprehensive income, the revaluation surplus will be deducted from the net inco

A: Solution Concept Revaluation surplus The term revaluation surplus means when the fair value of the…

Q: Requlred: Calculate the increase or decrease in the operating income in both alternatives.

A: Incremental Analysis: Incremental analysis refers to the analysis of differential revenue that could…

Q: Explain the term equivalent nominal annual rate (ENAR),?

A: The question is based on the concept of effective annual interest rate, which is calculated with…

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

A: The representation on the basis of assumption:

Q: Describe the specific process required by the unit cost comparison for the use of annual worth…

A: A unit cost comparison is required for the use of annual worth analysis because companies often…

Q: how much is the net remeasurement gain/loss at the end of the year?

A: Net re-measurement is the measurement which has been calculated by the company when all the losses…

Q: Define the terms annual percentage rate (APR), effective annual rate (EFF%), and nominalinterest…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: How to identify net revenue for the current FY?

A: For identifying the revenue earned during the current year the accrual principle of accounting needs…

Q: a. Pay-back period b. Discounted Pay-back period c. Internal Rate of Return (IRR)

A: Payback period is the period within which the sum invested by the company in a project will be…

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?

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Q: What can be understood from annual percentage rate (APR)?

A: Annual percentage rate (APR): The yearly rate charged for borrowing or picked up from speculation is…

Q: What is horizontal analysis, and how is a percentage change computed?

A: Financial statement analysis: Financial information of business is analyzed by the analysts,…

Q: How do you calculate the breakeven point in revenues?

A: Break-even point is the level at which profit is zero; that is, at the Break-even level, expenses…

Q: What is percentage change analysis?

A: Percentage Change Analysis - in this analysis, we analyze the percentage change in amount of…

Q: Define the term Annual operating cost:?

A: MEANING OF OPERATING COST The sum total of operating expenses and cost of goods sold is called…

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: what is the difference between a required rate of return and an expected rate of return?

A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…

Q: What is the process of computing the required annual savings to cover the capital and operating…

A: Answer: NPV is a capital budgeting technique used as it is taken as PV (cash inflows) and PV (cash…

Q: Explain with an illustration the technique of ratio annualization   and why it might be needed

A: Annualized Rate is that rate of return which is less than one year but it is computed as if the rate…

Q: What is the annual rate of return för the

A: An annualized rate of return is the equivalent annual return received by an investor over a specific…

Q: How can we apply Annual-Worth Analysis for the calculation of Unit-Profit or Unit-Cost Calculation?

A: Annual worth analysis is an analysis of value of an investment on an annual basis. It measures the…

Q: How much is the gross profit for the year?

A: Weighted average method is a method for inventory valuation in which weighted average cost per unit…

Q: In a period of inflation, which cost flow method produces the highest net income? O FIFO method O…

A: There are various methods for determining the ending inventory and cost of goods sold. Some of the…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.