Answer:
b.30.00%
Explanation:
Calculation to determine what the expected total net income of $16,830,000 over the 20 years is
Expected total net income =($16,830,000/20)/($5,610,000/2)*100
Expected total net income=$841,500/$2,805,000
Expected total net income =30.00%
Therefore the expected total net income of $16,830,000 over the 20 years is 30.00%
the role of government in real estate at the federal, state, and local level. Which has the most significant impact on real estate markets
Answer:
Local government has the most influence on real estate markets. It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.
Answer:
It affects the supply and cost of real estate through zoning and land use regulations, fees on new land development, and restrictive building codes.... state government generally has the least influence on real estate.
Explanation:
During fiscal year 2018, BHD Inc. had Cash from Operations of $600 million, and Cash Used for Investing of $1,000 million. During the year the Cash account on the balance sheet decreased by $700 million. This implies that the Financing cash flow was an
Answer:
the Financing cash flow is -$300
Explanation:
The computation of the Financing cash flow is given below:
Cash from operations $600
Less: Cash used for investing -$1,000
Cash flow for financing -$300
Decrease in cash -$700
Hence, the Financing cash flow is -$300
The same should be considered and relevant for determining the Financing cash flow
Pharoah Construction Company earned $403,000 during the year ended June 30, 2017. After paying out $225,794 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $847,042 at the end of fiscal year 2017, what were the retained earnings on its balance sheet on July 1, 2016
Answer:
See below
Explanation:
Given the above,
The retained earnings for June 2017
If net profit = retained earnings + dividend
Retained earnings = earnings - dividend payout
$403,000 - $225,794
= $177,206
Therefore, the retained earnings on it's balance sheet on July 1 2013 would be;
= Total retained earnings at the end of the fiscal year 2017 - Retained earnings
= $847,042 - $177,206
= $669,836
Two firms (1 and 2) compete in a homogeneous goods market, where the firms produce exactly the same good. The firms simultaneously and independently select quantities to produce. The quantity selected by firm i is denoted q, and must be greater than or equal to zero, for i - 1,2. The market price is given by p-2 - q1 -q2. For simplicity, as sume that the cost to firm i of producing any quantity is zero. Further, assume that each firm's payoff is defined as its profit. That is, firm i's payoff is pqi, where j denotes firm i's opponent in the game.
Requried:
Describe the normal form of this game by expressing the strategy spaces and writing the payoffs as functions of the strategies.
Answer:
m
Explanation:
Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 percent. Long-term risk-free government bonds were yielding 8.7 percent at the time. The current risk premium on BBB bonds versus government bonds is half of what it was two years ago. If the risk-free long-term government bonds are currently yielding 7.8 percent, then at what interest rate should Rolling Coast expect to issue new bonds
Answer: 9.2%
Explanation:
The interest rate that Rolling Coast should expect to issue new bonds will be calculated thus:
Firstly, we will calculate the previous risk premium on BBB bonds which will be:
= 11.5% - 8.7% = 2.8%
Then, the new risk premium on BBB bonds will be:
= Previous risk premium / 2
= 2.8% / 2
= 1.4%
Then, the interest rate that Rolling Coast should expect to issue new bonds will be:
= 7.8% + 1.4%
= 9.2%
The allowable increase for a constraint is Group of answer choices how much resource to use to get the optimal solution. the amount by which the resource can increase given shadow price. how many more units of resource to purchase to maximize profits. the amount by which the constraint coefficient can increase without changing the final optimal value.
Answer: the amount by which the resource can increase given shadow price.
Explanation:
The allowable increase refers to the amount by which the coefficient of the objective function can be increased without bringing about a change in the optimal basis.
The allowable increase for a constraint is the amount by which the resource can increase given shadow price. Therefore, the correct option is B.
Holt Enterprises recently paid a dividend, D0, of $3.50. It expects to have nonconstant growth of 19% for 2 years followed by a constant rate of 10% thereafter. The firm's required return is 13%. How far away is the horizon date? The terminal, or horizon, date is Year 0 since the value of a common stock is the present value of all future expected dividends at time zero. The terminal, or horizon, date is the date when the growth rate becomes nonconstant. This occurs at time zero. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the beginning of Year 2. The terminal, or horizon, date is the date when the growth rate becomes constant. This occurs at the end of Year 2. The terminal, or horizon, date is infinity since common stocks do not have a maturity date.
Answer:
Holt Enterprises
The terminal, or horizon, date is:
the date when the growth rate becomes constant. This occurs at the end of Year 2.
Explanation:
a) Recent dividend, DO = $3.50
Expected non-constant growth = 19%
Period of non-constant growth = 2 years
Expected constant rate of growth = 10% after 2 years of non-constant growth
The firm's required return rate = 13%
b) The terminal or horizon date is, therefore, from the end of year 2 or beginning of year 3, when constant growth sets in with the Holt stock.
At the horizon date the dividend, D3, must have grown to $5.42 approx.
Then, the horizon value is given by the formula = D3 / required rate - growth rate
= 5.42 / 0.13 - 0.01
= 5.42 / 0.03
= $181
Can anyone explain the popularity of the Types of housing in the UK for me?
Explanation:
Save
There are numerous different types of residential properties to be found throughout the United Kingdom. However, not all may be suitable for your unique requirements. Let’s take the guesswork out of the picture by listing all of the most common variants as well as the bespoke aspects of each. You can then make an informed and educated decision at the appropriate time.
It is currently estimated that there are more than 25 million residential properties throughout the United Kingdom. From detached homes and flats to bungalows and cottages, you have a host of amazing options at your disposal. There is still no doubt that finding the most appropriate structure for your needs can be a bit tricky. Let us examine these and other variants in greater detail. What are the advantages of specific properties? What does each have in store? How will price come into play? These important questions deserve a great deal of attention if you hope to obtain the insight and clarity required to make the best choice possible.
Detached Houses
As the name already suggests, detached houses do not share any walls with a separate structure. They also tend to have both front and back gardens. Associated with a greater degree of privacy when compared to other variants, these units are often ideal solutions for those who have children. The median price for a detached house (at the time that this article was written) is £242,286. If you are curious to know the worth of your property, feel free to use our online house valuation tool at your disposal.
Semi-Detached Houses
As the name suggests, the only major difference between a detached house and a semi-detached property is that semi-detached homes share at least one wall with an existing structure that is separately owned. Not only does this save a great deal of space, but these variants are also noticeably cheaper when compared to fully detached houses. This is why the average 2018 value of these structures was £225,674. The only possible concern is that semi-detached houses do not offer the same level of privacy as their detached alternatives.
Terraced Housing
These are actually some of the most well-known and iconic housing types within the United Kingdom. Terraced houses are connected by a single wall on either side; leading to a literal “row” of structures that occupy a street. The main advantage here is that this type of construction saves a great deal of space. This is why they are quite popular within urban districts where land is at a premium. The prices of these properties are also somewhat lower due to the fact that front or back gardens are sometimes absent from their design (although some may contain small front yards). According to government figures compiled in January 2018, the average price for a terraced home is £194,167.
End-of-Terrace Houses
The only main difference between end-of-terrace houses and the terraced counterparts mentioned previously is that these structures are found at the terminal of a row of homes. In other words, only one wall is shared with an adjacent structure. This is why such houses are often found at the end of a road or on a cul-de-sac. This is also the reason why end-of-terrace homes are priced slightly higher. Some studies have found that these structures cost as much as 18 per cent more than normal terraced homes.
Flats
There is no doubt that flats are by far the most well-known types of homes in the UK. Often being offered as a series within a single building, flats are known for their space-saving qualities as well as their convenience. These structures can either be rented on a contractual basis or purchased (the former is quite common). Flats are ideal for single individuals or those with small families due to the fact that they are often much more affordable when compared to detached or semi-detached houses. In fact, the average rental price of a flat (taking into account both urban and rural locations) is approximately £650. Purchase prices will naturally vary and if you would like to get a better idea of what flats have recently sold for in your area, take a look at our sold house price tool.
Converted Flats
The name for these types of residential properties is actually a bit of a misnomer. Converted flats are often houses that have been split into two sections; a top and bottom half. Either of these can be considered a flat while the other portion is normally where the owner resides. Please note that larger structures can be divided into multiple sections (such as individual bedroom-bathroom combinations) which can be rented separately. Depending upon the property in question, converted flats may or may not offer front and back gardens. The price of these locations fluctuates; depending upon issues such as the age of the property, its overall size and the cost of renting a section out to a customer.
Your sister just deposited $5,500 into an investment account. She believes that she will earn an annual return of 8.8 percent for the next 6 years. You believe that you will only be able to earn an annual return of 8 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 6 years
Answer:
$5749.02
Explanation:
The first step is to determine the future value of my sister's deposit
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
5500 (1.088)^6 = $9122.97
the second step is to determine the present value of $9122.97 using an interest rate of 8%
$9122.97 / (1.08)^6 = $5749.02
We are given the following information for the Pettit Corporation.
Sales (credit) $3,549,000
Cash 179,000
Inventory 911,000
Current liabilities 788,000
Asset turnover 1.40 times
Current ratio 2.95 times
Debt-to-assets ratio 40%
Receivables turnover 7 times
Current assets are composed of cash, marketable securities, accounts receivable, and inventory.
Calculate the following balance sheet items:
a. Accounts receivable.
b. Marketable securities.
c. Fixed assets.
d. Long-term debt.
Answer:
See below
Explanation:
a. Accounts receivables
= Sales / Receivables turnover
= $3,549,000 / 7x
= $507,000
b. Marketable securities
= Current assets - (Cash + Accounts receivable + Inventory)
Where;
Current asset = Current ratio × Current liabilities
Current asset = 2.95 × $788,000
Current asset = $2,348,240
Hence,
Marketable securities
= $2,348,240 - ($179,000 + $507,000 + $911,000)
= $2,348,240 - $1,597,000
= $751,240
c. Fixed assets
Total assets = Current assets + Fixed assets
$2,535,000 = $2,348,240 + Fixed assets
Fixed assets = $2,535,000 - $2,348,240
Fixed assets = $186,760
d. Long term debt
= Total debt - Current liabilities
Where,
Total debt = Debt to assets × Total assets
= 40% × ($3,549,000 / 1.40)
= 40% × $2,535,000
= $1,014,000
Hence,
Long term debt
= $1,014,000 - $788,000
= $226,000
LOL Music Store uses the perpetual inventory system to account for its merchandise. On November 17, it purchased $1,000 of merchandise with terms of 2/5,n/60. If payment is made on November 21. Demonstrate the required journal entry to record the payment.
Answer:
LOL Music Store
Journal Entry to record the payment:
November 21:
Debit Accounts Payable $1,000
Credit Cash $980
Credit Cash Discounts $20
To record the payment on account.
Explanation:
a) Data and Analysis:
November 17: Inventory $1,000 Accounts Payable $1,000
November 21: Accounts Payable $1,000 Cash $980 Cash Discounts $20
b) When LOL Music Store uses the perpetual inventory system to account for its merchandise, it debits the Inventory account instead of the Purchases account on November 17. The credit entry goes to the Accounts Payable account. On November 21, when payment is made, the Accounts Payable is debited while the Cash account and Cash Discounts are correspondingly credited.
The following statements describe why profits for firms in a perfectly competitive industry tend to vanish in the long run. Select the explanation that most accurately reflects this scenario?
A) Firms try to increase supply to cover their costs if they experience losses, and this leads to zero profits.
B) Firms are unable to generate revenue over time because the demand for products drops.
C) When other perfectly competitive firms see an opportunity to earn profits and enter the market prices drop.
D) When other perfectly competitive firms see an opportunity to earn profits and enter the market, prices rise.
Answer:
The correct answer is the option C: When other perfectly competitive firms see an opportunity to earn profits and enter the market the prices drop.
Explanation:
To begin with, in the microeconomics theory the perfect competitive market is characterized by the fact that there a lot of companies that sell an homogenous product and that are price takers of the market itself. So therefore that the only big difference in the firms are the costs and the prices that they have. Moreover, in the long run the firms are obtaining great profits so that leads to the enter of another more companies to the market and the supply rises the prices will have to go low so that will implicate as well a decrease in the prices of every company that now works in that industry.
University Car Wash built a deluxe car wash across the street from campus. The new machines cost $234,000 including installation. The company estimates that the equipment will have a residual value of $27,000. University Car Wash also estimates it will use the machine for six years or about 12,000 total hours. Actual use per year was as follows:
Year Hours Used
1 2,800
2 1,900
3 2,000
4 2,000
5 1,800
6 1,500
Required:
a. Prepare a depreciation schedule for six years using the straight-line method.
b. Prepare a depreciation schedule for six years using the double-declining-balance method.
c. Prepare a depreciation schedule for six years using the activity-based method.
Answer:
University Car Wash
a. Straight-line Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $34,500 $34,500 $199,500
2 $234,000 $34,500 $69,000 $165,000
3 $234,000 $34,500 $103,500 $130,500
4 $234,000 $34,500 $138,000 $96,000
5 $234,000 $34,500 $172,500 $61,500
6 $234,000 $34,500 $207,000 $27,000
b. Double-Declining-Balance Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $77,220 $77,200 $156,780
2 $234,000 $51,737 $128,937 $105,043
3 $234,000 $34,664 $163,601 $70,379
4 $234,000 $23,225 $186,826 $47,154
5 $234,000 $15,561 $202,387 $31,583
6 $234,000 $4,593 $206,980 $27,000
c. Activity-Based Method:
Year Cost Depreciation Accumulated Net Book
Expense Depreciation Balance
1 $234,000 $48,300 $48,300 $185,700
2 $234,000 $32,775 $81,075 $152,925
3 $234,000 $34,500 $115,575 $118,425
4 $234,000 $34,500 $150,075 $83,925
5 $234,000 $31,050 $181,125 $52,875
6 $234,000 $25,825 $206,950 $27,050
Explanation:
a) Data and Calculations:
Cost of new machines = $234,000
Residual value of equipment = $27,000
Depreciable amount = $207,000
Estimated useful life = 6 years
Straight-line depreciation expense per annum = $34,500 ($207,000/6)
Double-declining-balance rate = 33% (100%/6 * 2)
Year Depreciation Declining Balance
1 $77,220 $156,780
2 $51,737 $105,043
3 $34,664 $70,379
4 $23,225 $47,154
5 $15,561 $31,583
6 $4,593 $27,000
Estimated useful life in hours = 12,000
Depreciation rate per hour = $17.25 ($207,000/12,000)
Actual usage per year:
Year Hours Used Usage Charge
1 2,800 $48,300 (2,800 * $17.25)
2 1,900 $32,775 (1,900 * $17.25)
3 2,000 $34,500 (2,000 * $17.25)
4 2,000 $34,500 (2,000 * $17.25)
5 1,800 $31,050 (1,800 * $17.25)
6 1,500 $25,825 (1,500 * $17.25)
Assume that you finance a new car when you graduate. It will cost $120,000 and you will finance it with a 84 month contract having a nominal rate of 9.20% Compute the monthly payment to the second decimal place.
Answer: $1942.89
Explanation:
Since the car will cost $120,000 and it will be financed with a 84 month contract having a nominal rate of 9.20%, then the monthly payment will be:
= PMT(9.2%/12, 84, -120000)
This will be slotted into the Excel calculator and the answer gotten will be $1942.89
Therefore, the monthly payment will be $1942.89.
3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.
Answer:
The amount of the impairment loss to be recorded is $6,800.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
On January 1, 2020, Starn Tool & Manufacturing Company purchased a copyright for $31,000 cash. It is estimated that the copyrighted item will have no value by the end of 10 years.
Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.
The explanation of the answer is now provided as follows:
Amortization expenses for 2020 = Annual amortization expense = Copyright cost / Estimated useful life of the copyright = $31,000 / 10 = $3,100
Book value of copyright on January 2, 2022 = Copyright cost - Amortization expenses for 2020 = $31,000 - $3,100 = $27,900
Copyright fair value = $21,100
Impairment loss = Book value of copyright on January 2, 2022 - Copyright fair value = $27,900 - $21,100 = $6,800
Therefore, the amount of the impairment loss to be recorded is $6,800.
Assume personal tax rates are lower than corporate tax rates. From a tax-paying shareholder point of view, how should a firm spend its excess cash once it has funded all positive net present value projects
Answer: e. repurchase shares
Explanation:
If the personal tax rates are lower than corporate tax rates then the company should engage in an activity that would put money into the pockets of shareholders such that they would take advantage of the lower personal tax rates.
The best way to do that would be a share repurchase. The company would probably buy at above market rates which would give shareholders capital gain and they wouldn't have to pay much taxes on it as personal rates are lower.
Use the following information to create an Excel workbook and write the appropriate Excel formula.
Single Payment Compound Amount-
SPCA = (1+i)^n
i, interest rate per period, has a value of 0.00675
n, number of periods, has a value of 89.
Your answer must be the value produced by the Excel formula. Your answer must contain TWO and only TWO decimal places.
Answer:
id k
Explanation:
I=Prt try that if it helps
intrest = principla x rate x time
The price of soybean futures has increased over the last three months. As a soybean equipment supplier, how should you respond?
Answer:
Ask for a raise
Explanation:
bring in more soybeans
Company X has beta = 1.6, while Company Y's beta = 0.7. The risk-free rate is 7%, and the required rate of return on an average stock is 12%. Now the expected rate of inflation built into rRF rises by 1 percentage point, the real risk-free rate remains constant, the required return on the market rises to 14%, and betas remain constant. After all of these changes have been reflected in the data, by how much will the required return on Stock X exceed that on Stock Y?
a. 5.40%
b. 5.75%
c. 3.75%
d. 4.82%
e. 4.20%
Answer:
a. 5.40%
Explanation:
First, I will calculate the new cost of equity for both stock X and Y:
Required rate of return = risk free rate + (beta x market premium)
Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%
Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%
The difference between the required rate of return = 17.6% - 12.2% = 5.4%
The annual demand of product Z is 3400 units. The shop that sells product Z is open for business 40 weeks per year and 4 days per week. The lead time for product Z is 4 days. Assuming constant demand, calculate the reorder point. Hint: first calculate the total number of days the shop is open for business per year before calculating the reorder point. [Select the appropriate range in which your answer falls.]
Answer:
85 units
Explanation:
Annual demand = 3,400 units
Using 40 weeks per year & 4 days per week, the no of days per year = 160 days (40*4)
Average daily demand (d) = Annual demand / Number of days per year
Average daily demand (d) = 3400/160
Average daily demand (d) = 21.25 units
Lead time (L) = 4 days
Reorder point = Average daily demand (d) * Lead time (L)
Reorder point = 21.25 * 4
Reorder point = 85 units
You have accepted a job as the president and CEO of a large transportation conglomerate. Over the years, the conglomerate has acquired a number of unrelated divisions. Your first action as CEO is to complete a strategic plan.
Business Projected Growth Rate Current market share
Shipping Low 1%
Cargo inspection High 5%
Railroad loading Low 75%
Freight forwarding High 70%
Which of the following divisions would you take profits from and continue to run?
a. Railroad loading
b. Shipping
c. Freight forwarding
d. Cargo inspection
Answer: a. Railroad loading
Explanation:
This question relates to the BCG matrix which allows a company with multiple divisions to know how to deal with its various divisions based on their growth rate and market share.
The question specifically relates to a matrix called "Cash cows". Cash cows are divisions that have a significant market share but a low growth rate. These divisions are stable and bring more money into the company than they cost to run.
This allows us to take profits from them and invest in other. The Railroad loading controls a significant market share of 75% but has a low growth rate so is a Cash cow.
Complete each statement with the term that correctly defines each platform strategy advantage.
Platform businesses tend to frequently ____________ pipeline businesses.
Platforms scale more efficiently than pipelines by eliminating __________
Platform businesses _________ digital technology can grow much faster
Answer:
Note See full and organized question in the attached picture below
1. Platform businesses tend to frequently outperform pipeline businesses.
2. Platforms scale more efficiently than pipelines by eliminating gatekeepers.
3. Platform businesses leveraging digital technology can grow much faster.
4. Platforms unlock new sources of value creation and supply.
5. Feedback loops from consumers to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.
Faruq spends all of his income on two goods: tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. If Faruq purchases 10 milkshakes, he can purchase ________ tacos. Group of answer choices 18 8 50 10
Answer:
8
Explanation:
Amount he can spend on tacos = income - total price of milkshakes
total price of milkshakes = 2 x 10 = 20
100 - 20 = 80
quantity of tacos = 80 / 10 = 8
While on a trip to South Africa, Madison was impressed with the colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the United States, she was confident that U.S. consumers would be as intrigued by these accessories as she was. Madison decided to explore the possibility of starting an import business to bring these products to the United States. Which statement seems to be good advice for Madison?
Answer: A) Learn from others who import goods from abroad, and particular from Africa.
Explanation:
Nothing beats experience when it comes to acquiring knowledge so if Madison wants to acquire the knowledge necessary to bring the goods she saw in South Africa to the U.S., she should go to people who have experience in the matter and find out what they know.
This will giver her insight on the amount of money she needs to startup with as well as what business status she should have. They will also give her insight into cost cutting measures to enable her import with more efficiency and make more profit.
Explain 4 uses of national income
Answer:
1•Provide information on the types of factor incomes in the economy.
2•Provide statistics for measuring the economic growth of the country.
3•Provides information that is used to measure the standard of living in the country.
4•Provide information used for comparing economic performance of the country across two or more years
On April 30, 2009, Tilton Products purchased machinery for $88,000. The useful life of this machinery is estimated at 8 years, with an $8,000 residual value. Refer to the information above. Assume that in its financial statements, Tilton Products uses the 200%-declining-balance method and the half-year convention. Depreciation expense in 2009 and 2010 will be: Group of answer choices
Answer:
2009 $11,000
2010 $19,250
Explanation:
Calculation to determine what Depreciation expense in 2009 and 2010 will be:
2009 depreciation expense=$88,000 × 2/8
2009 depreciation expense = $22,000/2
2009 depreciation expense = $11,000
2010 depreciation expense= $77,000 × 2/8 2010 depreciation expense=$19,250
Therefore the Depreciation expense in 2009 and 2010 will be:
2009 $11,000
2010 $19,250
SOX requires the Chief Executive Officer (CEO) and which corporate officer to certify the accuracy of the financial statements?
Answer:
SOX requires the Chief Executive Officer (CEO) and the Chief Financial Officer (CFO) to certify the accuracy of the financial statements.
Explanation:
This requirement ensures the public accountability of the top chief executive officers of publicly-traded companies. The CEO is at the helm of affairs of the company, while the CFO has responsibility for the financial records, which produced the financial statements. This is the reason that the two top managers are required to sign off the financial statements, thus, vouching their accuracy.
Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases $500,000; Purchase Returns and Allowances $14,000; Purchase Discounts $9,000; and Freight-in $15,000. Determine net purchases and cost of goods purchased.
Answer:
Net purchases:
= Purchases - Purchase Returns and Allowances - Purchase Discount
= 500,000 - 14,000 - 9,000
= $477,000
Cost of goods sold:
= Net purchase + Freight-in
= 477,000 + 15,000
= $492,000
Data have been collected from College of Business graduates on their monthly starting salaries. The graduates include students majoring in management, finance, accounting, information systems, and marketing. Create a PivotTable in Excel to display the number of graduates in each major and the average monthly starting salary for students in each major.
Major Monthy Salary
Management 3330
Management 2700
Finance 3155
Accounting 3855
Info Systems 4220
Accounting 3110
Accounting 3880
a. Which major has the greatest number of graduates?
b. Which major has the highest average starting monthly salary?
c. Use the PivotTable to determine the major of the student with the highest overall starting monthly salary. What is the major of the student with the lowest overall starting monthly salary?
Answer:
Data from College of Business Graduates
a. The major that has the greatest number of graduates is Accounting.
b. The major that has the highest average starting monthly salary is Info Systems
c. The major with the lowest overall starting monthly salary is Management.
Explanation:
a) Data and Calculations:
Major Monthly Salary
Management 3330
Management 2700
Finance 3155
Info Systems 4220
Accounting 3855
Accounting 3110
Accounting 3880
If the inflation rate is equal to the nominal interest rate, the real interest rate is?
negative.
zero.
either positive or zero.
positive.
Answer: zero
Explanation:
It should be noted that real interest rate is the equal to the nominal interest rate after the inflation rate has been deducted.
Real Interest rate = Nominal rate - Inflation rate
For example let's say the nominal Interest rate and the inflation rate are both 5%, then the real interest rate will be:
Real Interest rate = Nominal rate - Inflation rate
Real interest rate = 5% - 5% = 0
