From the calculations, we can conclude that option (B) α-ß is not the correct expression for i in terms of α and B. The correct expression is given by option (D) (α/B)-1
The formulas (A/P, i, n) = x and (A/F, i, n) = B represent two different interest formulas. Let's analyze the first formula (A/P, i, n) = x, where A represents the amount, P is the principal, i is the interest rate per period, n is the number of periods, and x is the value obtained.
To express i in terms of α and B, we need to manipulate the formulas. By rearranging the first formula, we have:
A = P(1 + i)^n
Taking the (n^th) root on both sides:
(1 + i) = (A/P)^(1/n)
Now, let's analyze the second formula (A/F, i, n) = B. Rearranging this formula, we have:
A = F(1 + i)^(-n)
Substituting the expression for (1 + i) from the first formula into the second formula:
P(1 + i)^n = F(1 + i)^(-n)
Dividing both sides by P(F(1 + i)^(-n)), we get:
1 = (F/P)(1 + i)^(-2n)
Taking the (2n^th) root on both sides:
(1 + i) = [(F/P)^(-1/2n)]
Substituting the expression for (1 + i) back into the first formula:
(A/P)^(1/n) = [(F/P)^(-1/2n)]
Simplifying, we obtain:
[(A/P)^(1/n)]^(2n) = (F/P)^(-1)
(A/P)^2 = (F/P)^(-1)
A^2/P^2 = P/F
P/F = (P^2)/A^2
Since (P/F) = B, we can rewrite the equation as:
B = (P^2)/A^2
By rearranging this equation, we can solve for P/A:
(P/A)^2 = 1/B
Taking the square root of both sides:
P/A = 1/sqrt(B)
Now, substituting P/A with (1 + i), we have:
(1 + i) = 1/sqrt(B)
Simplifying further:
1 + i = (1/B)^(1/2)
Finally, subtracting 1 from both sides gives:
i = (1/B)^(1/2) - 1
From the calculations, we can conclude that option (B) α-ß is not the correct expression for i in terms of α and B. The correct expression is given by option (D) (α/B)-1.
To know more about expression follow the link:
https://brainly.com/question/945593
#SPJ11
Constructive dismissal happens when the employer changes a
fundamental contract term so much that the employee feels they have
no choice but to quit.
Select one:
True
False
The statement "Constructive dismissal happens when the employer changes a fundamental contract term so much that the employee feels they have no choice but to quit" is a true statement.
This is a situation where the employee has the right to resign and claim unfair dismissal. Constructive dismissal is a situation where the employer has failed to uphold the basic terms of the contract so much that the employee has no option but to resign.
The employee in this scenario feels that there has been a fundamental breach of their employment contract, and they have no alternative but to resign. The individual is typically treated as if they have been dismissed involuntarily and can claim unfair dismissal.
To know more about Fundamental Contract visit:
https://brainly.com/question/29890350
#SPJ11
Today is a day in September 2525 and a bond with annual coupon rate of 10.80% just yesterday paid a coupon. The bond matures in September 2539 and its quoted bond price is 125.76 percent of par (semiannual compounding). You wish to make a bid such that your promised rate of return is 35 basis points greater than the quoted annual yield-to-maturity. Find the price as percent of par that you offer for the bond. a.159.67 b.122.37 c.175.63 d.145.15 e.131.96
The price as a percent of par that you offer for the bond is 159.67.
To calculate the price you should offer, we first need to determine the yield-to-maturity (YTM) of the bond. The quoted bond price of 125.76 percent of par suggests a premium over par value. The YTM is the rate of return that equates the present value of the bond's cash flows (coupon payments and face value) to its current market price.
Since the bond pays coupons semiannually, we need to adjust the annual coupon rate of 10.80% to a semiannual coupon rate of 5.40%. The bond has a maturity of 14 years (28 periods), from September 2525 to September 2539.
Using a financial calculator or spreadsheet, we can find that the YTM is approximately 5.45% (annualized with semiannual compounding).
To offer a promised rate of return that is 35 basis points (0.35%) greater than the YTM, we add 0.35% to the YTM. Therefore, the promised rate of return is 5.80%.
Finally, we can calculate the price you should offer by discounting the bond's future cash flows (coupon payments and face value) at the promised rate of return of 5.80%. The resulting price as a percent of par is approximately 159.67.
Therefore, the correct option is a.159.67.
Learn more about payments , click here https://brainly.com/question/30884652
#SPJ11
HFA has recently received a contract from the state government to expand its job training program. The program will last for at least one year and will likely continue in the future. The expanded program will need a director with a salary of $70,000. The estimated rent for a facility to house the program will be approximately $20,000 for the next 12 months. The utilities, insurance, and custodial services are estimated to be $10,000 yearly. The facility can accommodate up to 100 people. The expanded program will also hire extra teachers/trainers, each of whom can teach up to twenty trainees. The salary for the teachers is $50,000 per year. Each of the program participants will receive a set of textbooks and other teaching materials, estimated at $1,000 per person. For simplicity, other potential costs are not considered for this case. What are the program's step costs if the program enrolls 50 students?
The step costs of the program, considering 50 student enrollments, the director's salary remains constant at $70,000. The facility rent remains constant at $20,000 for the next 12 months. The utilities, insurance, and custodial services also remain constant at $10,000 yearly. However, the program will require two teachers/trainers for 50 students, resulting in a total salary cost of $100,000.
To explain further, Step costs occur when certain production thresholds are crossed, such as when a factory increases capacity by adding a new production facility or additional employees to a production line. Costs are normally constant within certain ranges of capacity utilization; however, at specific points of capacity utilization, the costs will jump upwards. Hence, we need to calculate the step costs of the program given that it enrolls 50 students.
Director salary = $70,000
Rent for the facility = $20,000
Utilities, insurance, and custodial services = $10,000
Extra teachers' salary = $50,000 (2 extra teachers required, each can teach 20 trainees.)
Teaching materials = $1,000 per person ($1,000 * 50 students = $50,000)
Total program costs = $70,000 + $20,000 + $10,000 + $50,000 + $50,000 = $200,000
Step costs are: [(Costs at 100 students - Costs at 50 students)/ (100-50)] = [(Director salary + Rent + Utilities, insurance, and custodial services + Extra teachers' salary + Teaching materials)/ (100 - 50)] = $150,000/50= $3,000.
Therefore, the step costs of the program if the program enrolls 50 students are $3,000.
For similar problems with step costs visit:
https://brainly.com/question/20598470
#SPJ11
During the middle of the fiscal year, Fui Ltd unexpectedly revised its estimate of a plant asset’s life from 6 years to 8 years. That revision is most likely to lead to:
a. variable overhead spending variance.
b. fixed overhead spending variance.
c. fixed overhead production volume variance.
d. variable overhead efficiency variance.
During the middle of the fiscal year, Fui Ltd revised its estimate of a plant asset’s life from 6 years to 8 years. This revision is most likely to lead to the fixed overhead spending variance.
Fixed overhead spending variance is a result of the difference between the actual fixed overhead incurred and the expected fixed overhead. The fixed overhead variance can be either favorable or unfavorable.The fixed overhead variance can be due to one or a combination of the following reasons:Volume varianceProduction volume can affect fixed overhead variance.
In case the actual volume is more than what was expected, the variance will be favorable. If the actual volume is less than what was expected, the variance will be unfavorable.Price variancePrice variance can be due to different reasons like the change in rates, change in the terms and conditions, etc. If the actual price is less than what was expected, the variance will be favorable.
To know more about variance visit:
https://brainly.com/question/31432390
#SPJ11
make 4 separate journal entries to receive credit.
Larned Corporation recorded the following transactions for the just completed month. a. $80,000 in raw materials were purchased on account. b. $78,000 in raw materials were used in production. Of this
Journal entries to receive credit:
1. Journal Entry 1:DateAccountTitleDebitCreditExplanationPurchased Raw Material Accounts Payable$80,000Raw Materials were purchased on account
2. Journal Entry 2:DateAccountTitleDebitCreditExplanationRaw Material Inventory$78,000Raw Material used for production Raw Material Inventory-Indirect Material$12,000Used in production of product
3. Journal Entry 3:DateAccountTitleDebitCreditExplanationWages Expense$92,000Employee Wages for the month Payroll Tax Expense$10,000Payroll Taxes for the monthWages Payable$102,000Payroll paid for the month
4. Journal Entry 4:DateAccountTitleDebitCreditExplanationOffice Supplies Expense$2,100 Office supplies used in the month Supplies Inventory$2,100Office supplies purchased on account
The question requires the creation of 4 separate journal entries to receive credit.
The following transactions were recorded by the Larned Corporation for the just-completed month:
a. $80,000 in raw materials were purchased on account.
b. $78,000 in raw materials were used in production. Of this, $12,000 was for indirect materials.
c. Total payroll of $102,000, which included $10,000 in payroll taxes.
d. Office supplies used were $2,100.
Indicate which accounts should be debited and credited for each transaction.
Journal Entry 1:
Date: [Date]
Account Title: Raw Material Inventory (Debit)
Debit: $80,000
Account Title: Accounts Payable (Credit)
Credit: $80,000
Explanation: Raw materials were purchased on account, increasing the Raw Material Inventory and creating a liability in the form of an Accounts Payable.
Journal Entry 2:
Date: [Date]
Account Title: Raw Material Inventory (Debit)
Debit: $78,000
Account Title: Raw Material Inventory - Indirect Material (Debit)
Debit: $12,000
Explanation: $78,000 worth of raw materials were used in production, increasing the Raw Material Inventory. Additionally, $12,000 of those raw materials were classified as indirect materials, which are also debited to the Raw Material Inventory - Indirect Material account.
Journal Entry 3:
Date: [Date]
Account Title: Wages Expense (Debit)
Debit: $92,000
Account Title: Payroll Tax Expense (Debit)
Debit: $10,000
Account Title: Wages Payable (Credit)
Credit: $102,000
Explanation: The total payroll expense for the month was $102,000, which includes both wages and payroll taxes. The Wages Expense and Payroll Tax Expense accounts are debited to reflect the expenses incurred, and the Wages Payable account is credited as the payroll has been paid.
Journal Entry 4:
Date: [Date]
Account Title: Office Supplies Expense (Debit)
Debit: $2,100
Account Title: Supplies Inventory (Credit)
Credit: $2,100
Office supplies worth $2,100 were used during the month, which is debited to the Office Supplies Expense account. The Supplies Inventory account is credited to reflect the reduction in inventory due to the usage of supplies.
These are the 4 separate journal entries to receive credit.
Learn more about journal entry:
https://brainly.com/question/30499005
#SPJ11
please solve this with steps
19-40 Spoilage in job cesting. Textual Brilliance is a manufacturer of writing products for aspiring indie authors. Winston Smith, the plant manager of Textual Brilliance, obtains the following inform
The normal spoilage rate for Job #10 in August 2020 is approximately 13.04%.
How to calculate the ratesIn order to calculate the normal spoilage rate, we need to determine the percentage of spoiled units compared to the total number of units started.
In this case, the total number of units started is 46, and 6 units were spoiled and rejected at the final inspection. Therefore, the normal spoilage rate can be calculated as follows:
Normal spoilage rate = (Spoiled units / Total units started) * 100
= (6 / 46) * 100
≈ 13.04%
So, the normal spoilage rate for Job #10 in August 2020 is approximately 13.04%.
Learn more about rate on
https://brainly.com/question/25793394
#SPJ1
Winston Smith, the plant manager of Textual Brilliance, obtains the following information for Job #10 in August 2020. A total of 46 units were started, and 6 spoiled uns wiredorested and rejected at final inspec tion, yielding 40 good units. The spoiled units werde ed to beer Costs assigned prior to the inspection point are $1,100 per unit. The curent disposal price of the spoiled 235 per unit. When the spoilage is detected, the spoiled godare inventoried at $235 per unit. IBUTE
What is the normal spoilage rate?
Tracy Smith files a bankruptcy petition under Chapter 7. She owes $5,000 as wages to her four (4) employees. There is enough in her bankruptcy estate to pay her employees' claims in full, and to pay the expenses of the Chapter 7 Trustee, but there will be nothing left for the unsecured creditors.
Will each employee have to be paid less than what it is otherwise entitled to receive in order for there to be some money distributed to the general unsecured creditors?
Be Sure To State The Applicable Rule:
Apply the rule to the facts
Explain the reason for your conclusion
No, each employee does not have to be paid less than what they are entitled to receive in order for there to be some money distributed to the general unsecured creditors. The applicable rule for this case is found in 11 U.S.C. 507(a)(3).
According to this statute, wage claims owed by the debtor for earned wages within 180 days preceding the filing of the petition for bankruptcy are entitled to priority and must be paid in full. This means that the $5,000 owed as wages to the four employees is classified as a priority claim and the employees must be paid in full before any distribution is made to the unsecured creditors.
In this case, there is enough in the bankruptcy estate to pay the wage claims in full as well as the expenses of the Chapter 7 Trustee. Therefore, there will be nothing left for the general unsecured creditors. However, since the wage claims are entitled to priority, they must be paid in full before any distribution is made to the unsecured creditors.
Therefore, the employees must be paid their full wage claims, and there will be nothing left to distribute to the unsecured creditors.
Know more about the unsecured creditors click here:
https://brainly.com/question/24137772
#SPJ11
Which of the following about interest rates is NOT correct? Select one: a. The risk structure of interest rates includes the level of default risk, attached to particular bond issues. b. Investors are likely to demand a liquidity premium to hold long-term securities. c. A negatively sloped yield curve suggests an economy is likely to show significant weakness in the near future. d. Superannuation funds normally prefer to invest a larger proportion of their assets at the short end of yield curve to match the cash flow characteristics of their liabilities. e. For a downward sloping expectations yield curve, the addition of a liquidity premium may result in an observed flat yield curve.
The statement a negatively sloped yield curve suggests an economy is likely to show significant weakness in the near future about interest rates is NOT correct.
The correct answer is c. A negatively sloped yield curve suggests an economy is likely to show significant weakness in the near future.
A negatively sloped yield curve, also known as an inverted yield curve, is typically seen as a predictor of an economic downturn or recession. It suggests that short-term interest rates are higher than long-term interest rates. This phenomenon is often interpreted as a sign of market expectations for future economic weakness.
Therefore, option c is incorrect because a negatively sloped yield curve does suggest an economic weakness in the near future, rather than a significant weakness.
To learn more about interest rates click here
https://brainly.com/question/13324776
#SPJ11
What was the first official report on corporate
governance and why was it commissioned? What were the major
recommendations of the Cadbury Report?
The first official report on corporate governance is known as the Cadbury Report. The reason for its commissioning is due to the emergence of the increasingly evident lack of trust in corporate institutions, which has led to widespread calls for change.
Major recommendations of the Cadbury Report were board composition, board effectiveness, audit committee, remuneration and reporting and accountability.
The first official report on corporate governance is commonly referred to as the Cadbury Report. It was commissioned in the United Kingdom in 1991 by the Committee on the Financial Aspects of Corporate Governance, led by Sir Adrian Cadbury. The report was commissioned in response to growing concerns about the accountability and transparency of corporations, particularly following a series of high-profile corporate failures and financial scandals.
The Cadbury Report's key recommendations are as follows:
Board Composition: The report recommended that boards of directors should be composed of both executive and non-executive directors.Board Effectiveness: The report stated that boards of directors should have a formal and transparent method for evaluating their own performance, as well as those of the company's key executives.Audit Committee: The report suggested that companies establish audit committees to improve the quality of financial reporting and internal controls.Remuneration: The report suggested that remuneration for executives should be linked to company performance and be transparent.Reporting and Accountability: The report recommended that companies report on how they have followed the Cadbury Report's recommendations and that non-compliance should be explained publicly.To know more about corporate governance, visit https://brainly.com/question/13503182
#SPJ11
One of the marketing teams of FitGear Inc., a sporting goods company, has prepared a report on the marketing strategies for its new line of ice hockey equipment. The team is now in the process of checking the report against the originally stated objectives. In addition, the team has shared the report with the other teams to obtain feedback. In which of the following activities is FitGear Inc.'s marketing team primarily engaged?
FitGear Inc.'s marketing team is primarily engaged in the activity of reviewing the marketing strategies of its new line of ice hockey equipment and obtaining feedback from other teams. The given activity represents the process of monitoring and controlling the marketing plan, which is a crucial activity in the marketing management process.
A marketing plan is a blueprint of how an organization plans to promote its products or services. The marketing plan outlines a company's marketing strategy and the tactics it will use to execute that strategy. The marketing management process includes various stages, including planning, implementation, and controlling. The controlling stage helps in monitoring and adjusting the marketing plan to meet the company's objectives and goals.In the given scenario, the marketing team of FitGear Inc. has prepared a report on the marketing strategies for its new line of ice hockey equipment. The team is reviewing the report against the initially stated objectives and sharing the report with other teams to obtain feedback. By doing this, the team is actively engaged in the controlling stage of the marketing management process, where they are monitoring and adjusting their marketing plan to ensure that it meets the company's goals and objectives.
Thus, we can conclude that FitGear Inc.'s marketing team is primarily engaged in reviewing and obtaining feedback on the marketing strategies of its new line of ice hockey equipment. Controlling FitGear Inc.'s marketing team is engaged in monitoring and controlling the marketing plan. The controlling stage is one of the essential stages in the marketing management process. It involves the monitoring and adjusting of the marketing plan to ensure that it meets the company's objectives and goals. The following activities are involved in the controlling stage:Comparing actual performance with planned performance: In this step, the marketing team compares the actual performance with the planned performance to identify any deviations. The team then analyzes these deviations to identify the reasons for the deviations.Monitoring marketing performance:
To know more about marketing strategies visit :
https://brainly.com/question/31854392
#SPJ11
Regression Analysis is very helpful A. because it is a relationship model B. it has assumptions C. it is not based on modeling D. It analyses only 2 variables
Regression Analysis is very helpful because it is a relationship model. The correct option is A.
Regression analysis is used to predict how one variable changes as the value of another variable changes. It can also help in identifying which variables may have an impact on the dependent variable. It is a powerful statistical technique used in business, finance, and other fields of research to help make predictions and inform decision-making.
Regression analysis is a relationship model because it examines the relationship between two or more variables. It is a tool that can help determine if there is a correlation between the dependent and independent variables. The purpose of a regression analysis is to identify the strength of the relationship between two or more variables by examining the degree to which the dependent variable changes as the independent variables change.
Therefore, we can conclude that the option that best describes the usefulness of regression analysis is that it is a relationship model.
Learn more about regression analysis here:-
https://brainly.com/question/28178214
#SPJ11
We do this to visualize the project and plan the steps required to achieve the goals of the project. A blueprint will help guide your team and will also communicate to the Employer what your plan is and ensure that you’re meeting the goals and the tasks at hand. Your Project Blueprint should answer the following questions:
What will be the flow of our activities?
What is my role?
What methods will we be using?
What are the deliverables and milestones (timelines)?
How will you create your Project Blueprint?
1. Create a timeline
Map out what you plan on working on each week
2. Map out the methods and activities to be used
This will allow team members to bring together their work and create a more solid and uniform project
3. Define the deliverable and timeline for each phase
Set target dates for important deliverables. Consider the start and end dates for each activity and phase
4. Supplement with project details
For each timeline, indicate the actions and activities necessary, including research, any interviews necessary and how you will collaborate with each other. Make sure each of you is aware of your role and responsibility on your team
5. Visualize your blueprint
Try to integrate and visualize your plan on one page, capturing all of the activities, methods and deliverables required. Combining your road map will help you keep all the activities in context, providing a vision of how everything will come together in one comprehensive master plan for your project
Additional Information:
Keep your Project Blueprint high level (summary)
Try to keep your Project Blueprint to one page
Remember to ask questions so that you’re providing the best information possible to the Employer
Don’t miss meetings that may be planned with the Employer. Be professional!
Remember that you’re the HR Expert. Apply what you’ve learned
Don’t forget to cite the sources that you will use in your research
A project blueprint is essential for visualizing and planning the steps required to achieve project goals.
Outline the methods and activities to ensure a cohesive project. Define deliverables and timelines for each phase, supplementing with project details and clarifying team roles. Visualize the blueprint on one page, capturing all activities, methods, and deliverables. Remember to keep the blueprint high level, ask questions for clarity, attend planned meetings, apply HR expertise, and cite sources for research. Creating a project blueprint is essential for visualizing the project and planning the necessary steps to achieve the goals. It serves as a guide for the team and communicates the plan to the employer, ensuring that goals and tasks are being met. The project blueprint should address the flow of activities, roles and responsibilities, methods to be used, deliverables and milestones, and timelines.
Learn more about project blueprints here:
https://brainly.com/question/30451043
#SPJ11
Please tell us how to entertain guests with best treat. Highlight the essential points. Around 150 words.
When it comes to entertaining guests, it is essential to ensure that they are well-catered for and have a memorable time. Entertaining guests requires adequate preparation in terms of meals, beverages, and activities.
Below are some essential tips to make your guests feel welcome and comfortable. First, determine your guest’s preferences, allergies, and dietary restrictions to ensure that they feel catered for. It is essential to make a comprehensive list of your guest's preferences, and once you have gathered all the necessary information, you can plan your menu accordingly.
Prepare the meal in advance to avoid last-minute chaos, and ensure that the food is well presented and seasoned to taste. Presentation is everything, so make sure the table is well set, and the atmosphere is warm and welcoming. Use candles and flowers to create a calm and soothing environment and ensure that the lighting is not too bright. A good host should keep the guests entertained with exciting activities such as board games, karaoke, or a dance party.
Provide your guests with good music and encourage them to participate in the activities. Serve beverages such as wine, cocktails, or non-alcoholic drinks to ensure that everyone is catered for and feels comfortable. Lastly, make sure you are well dressed, and your outfit is comfortable and suitable for the occasion. You should also be attentive to your guests and ensure that they have everything they need. In conclusion, entertaining guests is all about making them feel welcomed, catered for, and entertained.
To know more about Entertaining Guests visit:
https://brainly.com/question/3124328
#SPJ11
Managing Director of DHL Global Forwarding South Africa, is unsure. about what contemporary issues of motivation he should consider in his organisation. Explain any four contemporary motivation issues that management in DHL Global Forwarding South Africa is facing. Q.2.2 Managers should design jobs that reflect the demands of the changing environment, as well as the organisation's technology, skills and abilities, and the preferences of its employees.
The four contemporary motivation issues that management in DHL Global Forwarding South Africa is facing are as follows:Work-life balance: Employees need time to enjoy their personal lives and tend to their families.
Creating a balance between work and personal life is critical for the employee's physical and mental well-being.Employment security: Employees are motivated to work for organizations that provide job security and stability. The fear of losing their jobs can make them less motivated and engaged.
Fairness and equity: Inequity leads to demotivation among employees. Managers need to ensure that everyone is treated fairly and equitably to avoid negative consequences.Job satisfaction: Employees who are satisfied with their jobs tend to be more productive and motivated.
It is essential to ensure that employees are happy with their jobs to keep them motivated to work hard and deliver quality results. 2.2:
To design jobs that reflect the changing environment and organization's technology, managers need to consider various factors, such as job design, employee preferences, and the skills and abilities of their employees.
They must create job roles that are tailored to fit the current environment and technology to ensure maximum efficiency.
This can be achieved by seeking feedback from employees and analyzing their skill sets to understand their preferences. By creating jobs that reflect employee preferences, managers can improve employee motivation, productivity, and job satisfaction.
To know more about Job satisfaction click on below link:
https://brainly.com/question/28580172#
#SPJ11
Portfolio Analysis. You have been given the expected return data shown in the first table on three assets-F,G and H- over the period 2016-2019.
Expected return
Year Asset F Asset G Asset H
2016 16% 17% 14%
2017 17 16 15
2018 18 15 16
2019 19 14 17
Using these assets, you have isolated the three investment alternatives shown in the following table:
Alternative Investment
1 100% of asset F
2 50% of asset F and 50% of asset G
3 50% of asset F and 50% of asset H
a.) Calculate the expected return over the 4-year period for each of the 3 alternatives.
b.) Calculate the standard deviation of returns over the 4 year period for each of the three alternatives.
c.) Use your findings in parts A & B to calculate the coefficient of variation for each of the three alternatives.
d.) On the basis of your findings, which of the three investment alternatives do you recommend? Why?
Expected return = (0.5 * (16% + 17% + 18% + 19%)) + (0.5 * (14% + 15% + 16% + 17%))/4 = 16.625% .The lower coefficient of variation indicates lower risk compared to the other alternatives. Alternative 2 and Alternative 3 have the same expected return.
a) The expected returns over the 4-year period for each of the three alternatives can be calculated as follows:
Alternative 1: 100% of asset F
Expected return = (16% + 17% + 18% + 19%)/4 = 17.5%
Alternative 2: 50% of asset F and 50% of asset G
Expected return = (0.5 * (16% + 17% + 18% + 19%)) + (0.5 * (17% + 16% + 15% + 14%))/4 = 16.625%
Alternative 3: 50% of asset F and 50% of asset H
Expected return = (0.5 * (16% + 17% + 18% + 19%)) + (0.5 * (14% + 15% + 16% + 17%))/4 = 16.625%
b) The standard deviation of returns over the 4-year period for each of the three alternatives can be calculated using the following formula:
Standard deviation = sqrt[((Return1 - Expected Return)^2 + (Return2 - Expected Return)^2 + ... + (Returnn - Expected Return)^2)/(n-1)]
Calculating the standard deviations for each alternative:
Alternative 1: Standard deviation of returns = sqrt[((16% - 17.5%)^2 + (17% - 17.5%)^2 + (18% - 17.5%)^2 + (19% - 17.5%)^2)/3] = 1.12%
Alternative 2: Standard deviation of returns = sqrt[((16% - 16.625%)^2 + (17% - 16.625%)^2 + (18% - 16.625%)^2 + (19% - 16.625%)^2 + (17% - 16.625%)^2 + (16% - 16.625%)^2 + (15% - 16.625%)^2 + (14% - 16.625%)^2)/7] = 1.62%
Alternative 3: Standard deviation of returns = sqrt[((16% - 16.625%)^2 + (17% - 16.625%)^2 + (18% - 16.625%)^2 + (19% - 16.625%)^2 + (14% - 16.625%)^2 + (15% - 16.625%)^2 + (16% - 16.625%)^2 + (17% - 16.625%)^2)/7] = 1.62%
c) The coefficient of variation (CV) for each alternative can be calculated as follows:
CV = (Standard Deviation / Expected Return) * 100
Calculating the coefficient of variation for each alternative:
Alternative 1: CV = (1.12% / 17.5%) * 100 = 6.4%
Alternative 2: CV = (1.62% / 16.625%) * 100 = 9.75%
Alternative 3: CV = (1.62% / 16.625%) * 100 = 9.75%
d) Based on the findings, the recommended investment alternative would be Alternative 1, which consists of 100% of asset F. This choice provides the highest expected return of 17.5% with the lowest coefficient of variation of 6.4%. The lower coefficient of variation indicates lower risk compared to the other alternatives. Alternative 2 and Alternative 3 have the same expected return.
Learn more about asset here:
https://brainly.com/question/14392032
#SPJ11
let's do trade with an example where we simply and use linear ppfs suppose canada has a linear ppf that runs from 6 million heads of broccoli (with no beef) to 4 million pounds of beef (with no broccoli). meanwhile the us has a linear ppf running from 12 million heads of broccoli (with no beef) to 4 million pounds of beef (with no broccoli). you should sketch these on paper to help answer the following: group of answer choices opportunity cost of 1 unit beef in canada 1.5 units broccoli opportunity cost of 1 unit of beef in the us 3 units of broccoli the us has a comparative in broccoli canada has a comparative advantage in beef extra global output from complete specialization compared to a no trade scenario where each country splits its factors of production equally between the two sectors
Both nations gain as a result of the trade. When compared to a no-trade situation, trade enables both countries to consume more of each good
Linear PPFs, which represent a fixed amount of production at any given point in time, are used to explain the gains from trade. As a result, it can be used to demonstrate how two nations can increase their total output by exchanging products.
Let's take an example where we can easily understand and use linear PPFs. Assume that Canada has a linear PPF that ranges from 6 million heads of broccoli (with no beef) to 4 million pounds of beef (with no broccoli). Meanwhile, the United States has a linear PPF ranging from 12 million heads of broccoli (with no beef) to 4 million pounds of beef (with no broccoli). The following can be achieved by sketching these on paper:
Opportunity cost of 1 unit beef in Canada: 1.5 units broccoli
Opportunity cost of 1 unit of beef in the US: 3 units of broccoli
The US has a comparative in broccoli, Canada has a comparative advantage in beef.
When both the nations completely specialize in producing the good in which they have a comparative advantage, there is extra global output as compared to the no-trade scenario where each country splits its factors of production equally between the two sectors.
The reason for the increase in production is that each nation now produces the good in which it has a comparative advantage and exchanges it for the other product, resulting in an increase in production. As a result, both nations gain as a result of the trade. When compared to a no-trade situation, trade enables both countries to consume more of each good.
To know more about Opportunity Cost visit:
https://brainly.com/question/13036997
#SPJ11
Calculate the resource-based relative value scale (RBRVS) payment for a lumbar hemilaminectomy-discectomy performed in each of the cities below using the physician fee schedule search on the CMS website to collect the necessary values. Use the 2018 fee schedule. Create a table to show your work. • Dallas • Chicago • San Francisco Which city has the highest rate? Explain.
The resource-based relative value scale (RBRVS) is a system used to determine the payment rates for medical services based on the resources required to provide those services. It takes into account factors such as physician work, practice expenses, and malpractice costs.
To calculate the RBRVS payment for a specific medical procedure, you would need to know the relative value units (RVUs) assigned to each component of the procedure (physician work, practice expenses, and malpractice costs) and the conversion factor, which is a dollar amount representing the relative value of one RVU.
Since the information about specific RVUs and conversion factors for the lumbar hemilaminectomy-discectomy in the cities of Dallas, Chicago, and San Francisco is not provided, I am unable to create a table or calculate the payment rates for each city.
However, in general, the city with the highest rate for a medical procedure under the RBRVS system would likely be the one with higher practice expenses and malpractice costs. Factors such as the cost of living, healthcare infrastructure, and regional variations in expenses can influence the payment rates.
For accurate and up-to-date information on RBRVS payment rates for specific medical procedures in different cities, it is recommended to refer to the official CMS website or consult with relevant healthcare authorities or billing professionals who have access to the necessary data and resources.
To know more about resource-based relative value scale click this link -
brainly.com/question/32635030
#SPJ11
Bill was shopping at the mall. As he was walking to Tonne's Department Store, his wallet fell out of his pants. While trying on a new suit, Bill left his leather jacket on the coat hook in the dressing room and he left behind an old tie he no longer wanted so he wouldn't have to take it home with him. Sue found Bill's wallet. Arnie, a sales associate, found his jacket and a college student, Gamal, found the tie and planned to keep it for class presentations. What kind of found property is Bill's wallet? What kind of property is his jacket? What kind of property is the tie? What rights do Sue, Arnie, and Gamal have in the found property?
Discuss whether the items are lost, mislaid or abandoned property, and the rules that apply for each regarding the finder's rights (define, state the rules and discuss all 3), then conclude with your answer of the appropriate label and result for each item.
Bill's wallet is considered lost property because he unintentionally dropped it while walking.
Bill's jacket is considered mislaid property because he intentionally left it behind on the coat hook in the dressing room.
The tie is considered abandoned property because Bill intentionally left it behind, indicating that he no longer wanted it.
Regarding the finder's rights:
1. Sue, who found Bill's wallet, has the right to possess and keep the wallet. She becomes the lawful owner of the wallet unless the true owner can be identified and successfully claim it.
2. Arnie, the sales associate who found Bill's jacket, has a duty to hold the jacket for safekeeping until the true owner claims it. Arnie does not acquire ownership rights over the jacket.
3. Gamal, the college student who found the tie, also has a duty to hold the tie for safekeeping until the true owner claims it. Gamal does not acquire ownership rights over the tie.
The appropriate label and result for each item are as follows:
- Wallet: Sue becomes the owner of the wallet as the finder.
- Jacket: Arnie holds the jacket as a bailee until Bill claims it.
- Tie: Gamal holds the tie as a bailee until Bill claims it.
learn more about mislaid property here:
https://brainly.com/question/32178083
#SPJ11
Varto Company has 12.200 units of its product in inventory that it produced last year at a cost of $156,000. This year's model is better than last year's, and the 12.200 units cannot be sold at last year's normal selling price of $41 each. Varto has two alternatives for these units: (1) They can be sold as is to a wholesaler for $109,800 or (2) they can be processed further at an additional cost of $312,100 and then sold for $414,800. (a) Prepare a sell as is or process further analysis of income effects. (b) Should Varto sell the products as is or process further and then sell them?
Comparing the income effects, selling the products as is would result in a gain of $109,800, while processing them further and then selling would result in a gain of $102,600 ($414,800 - $312,100).
To analyze the income effects, we compare the gains from selling the products as is versus processing them further. Selling as is would yield $109,800, which is the amount Varto would receive without incurring additional costs. On the other hand, processing the products further incurs an additional cost of $312,100, but it allows Varto to sell them for $414,800.
The gain from processing would be $102,600 ($414,800 - $312,100). Since the gain from selling, as is is greater than the gain from processing further, Varto should sell the products as is. It would result in a higher overall gain compared to processing them further.
For more questions like Amount click the link below:
https://brainly.com/question/13024617
#SPJ11
Consider a simple signaling model à la Spence. Workers are born with either high ability with probability (wp) of .5 or low ability wp of .5. Productivity for higher productivity worker is 10 and the productivity of low productivity is 6. Each worker knows her/his productivity, but it can't be known to the employer. a. What is the average productivity of the worker? b. Explain the problem of adverse selection problem when the employer pays the average productivity of the worker for all workers? c. If the worker is allowed to create the signal with the education, and if the education costs 2 for high productivity workers and 4 for low productivity workers, what would be the range of wage combinations for high/low productivities to create a separating equilibrium?
a) the average productivity of the workers in this model is 8. b)This leads to adverse selection, where the employer ends up with a disproportionately high number of low-productivity workers. c)The specific range of wage combinations would depend on the exact values of the education costs and the willingness of employers to pay higher wages for higher productivity.
a. The average productivity of the workers can be calculated by taking the weighted average of the productivity levels. Given that the probability of a worker having a high ability (H) is 0.5 and the productivity of high-ability workers is 10, while the probability of a worker having a low ability (L) is also 0.5 and the productivity of low-ability workers is 6, the average productivity (AP) can be computed as:
AP = (wp * Productivity of H) + ((1 - wp) * Productivity of L)
= (0.5 * 10) + (0.5 * 6)
= 5 + 3
= 8
Therefore, the average productivity of the workers in this model is 8.
b. The problem of adverse selection arises when the employer pays the average productivity of the worker for all workers. Since workers have asymmetric information about their productivity levels, high-productivity workers have the incentive to signal their higher ability, while low-productivity workers have no incentive to reveal their lower ability. As a result, the employer ends up paying the average wage assuming an average productivity level, but only low-productivity workers are willing to accept this wage. High-productivity workers, on the other hand, would find this wage unacceptable and may choose not to work in the company or seek alternative opportunities. This leads to adverse selection, where the employer ends up with a disproportionately high number of low-productivity workers.
c. In order to create a separating equilibrium, where high and low-productivity workers can distinguish themselves through education and receive different wages, the wage combinations must incentivize the high-productivity workers to invest in education while discouraging low-productivity workers. Let's denote the wage for high-productivity workers as WH and the wage for low-productivity workers as WL.
For a separating equilibrium to exist, the wage combination must satisfy the following conditions:
WH > WL (High-productivity workers should earn a higher wage than low-productivity workers)
WH - 2 > WL (High productivity workers should have a wage higher than the cost of education)
WL - 4 < WH (Low productivity workers should have a wage lower than the cost of education)
By satisfying these conditions, high-productivity workers are incentivized to invest in education since the return on investment (higher wage) outweighs the cost of education, while low-productivity workers find it unprofitable to invest in education. The specific range of wage combinations would depend on the exact values of the education costs and the willingness of employers to pay higher wages for higher productivity.
learn more about education costs here:
https://brainly.com/question/30530392
#SPJ11
Commercial cookery/ Kitchen:
Provide one (1) example of how a manager can:
Encourage team members to initiate and participate in problem solving when problems are identified.
Challenge and test ideas within the team in a positive and collaborative way.
A manager can encourage team members to initiate and participate in problem solving by creating an inclusive and supportive environment where ideas are valued. They can challenge and test ideas within the team in a positive and collaborative way by fostering open communication and promoting a culture of constructive feedback.
To encourage team members to initiate and participate in problem solving, a manager can start by fostering an inclusive and supportive environment. They can create regular opportunities for team members to share their ideas and concerns, such as team meetings or brainstorming sessions. By actively listening to their team members and providing a safe space for open discussion, the manager can empower individuals to voice their opinions and contribute to problem-solving efforts. Additionally, the manager can set an example by actively participating in problem-solving discussions and showcasing their openness to new ideas. They can acknowledge and appreciate the input and efforts of team members, creating a positive and encouraging atmosphere. By recognizing and rewarding innovative solutions, the manager reinforces the value of proactive problem solving and motivates team members to take ownership of identifying and addressing issues.
In order to challenge and test ideas within the team in a positive and collaborative way, the manager should promote open communication and encourage constructive feedback. They can establish a culture where team members feel comfortable expressing their thoughts and opinions, even if they differ from the prevailing ideas. This can be achieved by encouraging active listening, respecting diverse perspectives, and facilitating healthy debates. Furthermore, the manager can organize collaborative activities such as group discussions, workshops, or simulations where team members can collectively analyze and evaluate ideas. By creating a collaborative environment where ideas are tested, refined, and improved upon, the manager fosters a culture of continuous learning and growth within the team. Overall, by creating an inclusive and supportive environment and promoting open communication and collaboration, a manager can effectively encourage team members to initiate and participate in problem solving. By challenging and testing ideas in a positive and collaborative manner, the manager fosters innovation, teamwork, and a sense of ownership among team members.
Learn more about problem solving here: https://brainly.com/question/31606357
#SPJ11
On October 1, 2020, Eastern Timber Inc. has available for issue $700,000 bonds due in four years. Interest at the rate of 5.00% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Issue Price a. 6% b. 5% C. 4%
The issue price of the bonds for different market interest rates is approximately:
a) $692,103
b) $700,000
c) $708,062
To calculate the issue price of the bonds, we need to use the present value formula for a bond. The formula is:
PV = C × [1 - (1 + r)^(-n)] / r + M / (1 + r)^n
Where PV is the present value (issue price), C is the coupon payment per period, r is the periodic interest rate, n is the number of periods, and M is the maturity value.
Given:
C = $700,000 × 5.00% / 4 = $8,750 (quarterly coupon payment)
n = 4 (number of years)
M = $700,000 (maturity value)
a) Market interest rate = 6%
r = 6% / 4 = 1.50% (quarterly interest rate)
Using the formula, the issue price is calculated as:
PV = $8,750 × [1 - (1 + 1.50%)^(-4)] / 1.50% + $700,000 / (1 + 1.50%)^4
PV ≈ $692,103
b) Market interest rate = 5%
r = 5% / 4 = 1.25% (quarterly interest rate)
Using the formula, the issue price is calculated as:
PV = $8,750 × [1 - (1 + 1.25%)^(-4)] / 1.25% + $700,000 / (1 + 1.25%)^4
PV ≈ $700,000
c) Market interest rate = 4%
r = 4% / 4 = 1.00% (quarterly interest rate)
Using the formula, the issue price is calculated as:
PV = $8,750 × [1 - (1 + 1.00%)^(-4)] / 1.00% + $700,000 / (1 + 1.00%)^4
PV ≈ $708,062
The issue price of the bonds for different market interest rates is approximately:
a) $692,103 (6% market interest rate)
b) $700,000 (5% market interest rate)
c) $708,062 (4% market interest rate)
To know more about interest rates visit:
https://brainly.com/question/29451175
#SPJ11
Which QuickBooks Time clock-in/clock-out option is specifically designed for businesses with on-site shift workers? O Manual Time Card O Time Clock O Crew tracking Time Clock Kiosk
The QuickBooks Time clock-in/clock-out option specifically designed for businesses with on-site shift workers is the "Time Clock Kiosk."
QuickBooks Time offers different clock-in/clock-out options to meet the needs of various businesses. The "Time Clock Kiosk" feature is specifically designed for businesses with on-site shift workers. It provides a centralized location, typically a physical kiosk or tablet, where employees can easily clock in and out for their shifts. This option is suitable for businesses that have a designated area where employees can access the time clock and record their working hours.
By offering the Time Clock Kiosk option, QuickBooks Time caters to the specific requirements of businesses with on-site shift workers, providing them with a convenient and efficient method for tracking employee attendance and working hours.
To learn more about businesses, visit
brainly.com/question/24553900
#SPJ11
Because the minimum wage is not indexed to inflation, when there is inflation thenominal minimum wage and the real minimum wage. A. remains constant; remains constant B. None of the above C. increases; decreases OD. remains constant; decreases E. decreases; remains constant Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the i following except: A. None of the above B. higher rates of literacy. C. longer life expectancies. D. higher rates of infant mortality.. E. higher material standards of living.
Because the minimum wage is not indexed to inflation, when there is inflation then the nominal minimum wage and the real minimum wage decrease. The correct option is E. decreases; remains constant.
Nominal wage is the wage paid in terms of the currency of the country and real wage refers to the actual buying power of the wage which adjusts with the rate of inflation. As the nominal wage remains fixed in an economy, if there is an increase in the price level, then the real wage decreases.
Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except higher rates of infant mortality. The correct option is D. higher rates of infant mortality. Gross Domestic Product (GDP) is a monetary measure of the market value of all final goods and services produced in a period of time. It is an important economic indicator that reflects the health of the economy. High levels of GDP are positively correlated with higher rates of literacy, longer life expectancies, and higher material standards of living. However, it is not correlated with higher rates of infant mortality as it only measures the economic output and not the quality of life.
To know more about inflation visit:
https://brainly.com/question/28136474
#SPJ11
Which of the following statement is false regarding mutual funds? A) Investors earn dividends from most of the mutual funds B) Investors earn capital gain distributions from most of the funds C) Investors can profit from capital gains when they sell the fund at a profit D) Mutual funds are traded on an exchange and quotes are available during market times. E) If a fund distributes more than 90% of the income to fund holders, the fund itself is exempt from Taxes O A O B O C
O D
O E
D) Mutual funds are traded on an exchange and quotes are available during market times.
This statement is false. Unlike individual stocks, mutual funds are not traded on exchanges, and their quotes are not available during market times. Mutual funds are bought and sold directly with the fund company at the net asset value (NAV) price. The NAV is calculated at the end of each trading day based on the current value of the fund's underlying assets.
Mutual funds provide investors with an opportunity to diversify their investments across a portfolio of securities managed by professional fund managers. Investors can earn dividends and capital gain distributions from most mutual funds, as stated in options A and B. Additionally, investors can profit from capital gains when they sell the fund at a profit, as mentioned in option C. Furthermore, if a mutual fund distributes more than 90% of its income to fund holders, the fund itself can be exempt from taxes, as indicated in option E.
In summary, mutual funds are not traded on exchanges, and their quotes are not available during market times, making option D the false statement.
Learn more about Mutual funds here:
https://brainly.com/question/31240480
#SPJ11
Which of the following statements is true of how useful the notion of national culture is when managing international pay?
National culture is only a starting point.
Managers should rely on the national culture to manage international pay.
The variance between countries is far larger than the variance between individuals within countries.
The importance of national culture when managing international pay is understated.
The variance between countries is far larger than the variance between individuals within countries is true of how useful the notion of national culture is when managing international pay.
The variance between countries is far larger than the variance between individuals within countries is true of how useful the notion of national culture is when managing international pay.
National culture is not the only factor to be considered while managing international pay. In order to manage the pay of employees from different countries, managers should take into account all the differences that exist between these countries.
The variance between countries is far larger than the variance between individuals within countries.
International pay management is the process of managing the compensation of employees who work in different countries.
This involves managing different pay systems and structures, as well as dealing with different tax laws, currencies, and regulations.
One of the factors that affect international pay management is national culture. While national culture is an important factor to consider when managing international pay, it is not the only factor.
The variance between countries is far larger than the variance between individuals within countries.
Therefore, managers should not rely solely on the national culture to manage international pay. Instead, they need to take into account all the differences that exist between the countries in which they operate.
This includes differences in the legal and economic systems, as well as the different cultural and social norms that exist within these countries.
To know more about variance visit :-
https://brainly.com/question/31432390
#SPJ11
Dominique’s total allowable medical expenses in 2020 were $5,200. Her net income was $90,000 and the cut-off for the medical expense amount in 2020 was 3% of net income, or $2,397, whichever is less. What was her Federal medical expense tax credit for 2020?
a $420
b $375
c $780
d $2,803
Dominique's Federal medical expense tax credit for 2020 is $359.55.
To calculate Dominique's Federal medical expense tax credit for 2020, we need to compare her total allowable medical expenses with the cut-off amount.
The cut-off amount is the lesser of:
3% of her net income: 3% * $90,000 = $2,700
$2,397 (the maximum allowable medical expense amount for 2020)
Since Dominique's total allowable medical expenses are $5,200, which is greater than both the 3% of her net income and $2,397, we can use the cut-off amount of $2,397.
To calculate the tax credit, we take the cut-off amount and multiply it by the applicable percentage. In 2020, the applicable percentage is 15%.
Tax Credit = Cut-off Amount * Applicable Percentage
Tax Credit = $2,397 * 0.15
Tax Credit = $359.55
Learn more about medical expense tax here:
https://brainly.com/question/30189627
#SPJ11
(Calculation of new ratio and gaining ratio) P, Q and Rare partners Sharing profits in the ratio of 3/8, 1/2 and 1/8.Q retires and surrenders 12 his share in favour of P and the remaining share in favour of R. Calculate new profit sharing and the gaining ratio of the remaining partners.
The new profit-sharing ratio of P, Q, and R is 2:1:1, and the gaining ratio of P and R is 1:1. Therefore, P and R will now have equal profit sharing.
Given ratios of the partners Sharing profits in the ratio of 3/8, 1/2, and 1/8.Respective capital investment of the partners cannot be determined without additional information.
Q retires and surrenders 1/2 share in favor of P and 1/2 share in favor of R. Therefore, P and R will now have equal profit sharing (since their profit share was already in the ratio 3:1).
Let us calculate the new profit-sharing ratio: New profit-sharing ratio = (3/8) + (1/2)*(1/2) : 0 + (1/2)*(1/2) + (1/8) = (3/8 + 1/4) : (1/4 + 1/8) = 6:3 = 2:1
Gaining ratio of P and R: The new gaining ratio of P and R will be calculated based on the surrender of shares by Q in favor of P and R.
Gaining ratio of P and R = (Share surrendered by Q)/(Total capital of P and R) = (1/2)/(3/8 + 1/8) = (1/2)/(1/2) = 1:1
Therefore, the new profit-sharing ratio of P, Q, and R is 2:1:1, and the gaining ratio of P and R is 1:1.
To know more about Sharing profits visit:
https://brainly.com/question/23423917
#SPJ11
You hold a diversified portfolio consisting of a $10,000 investment in each of 15 different common stocks (i.e.. your total investment is $150,000). The portfolio beta is equal to 0.9. You have decided to sell one of your stocks which has a beta equal to 0.6 for $10,000. You plan to use the proceeds to purchase another stock which has a beta equal to 1.0. What will be the beta of the new portfolio? Show your answer to 2 decimal places. Your Answer:
_____
To calculate the beta of the new portfolio, we can use the formula for the weighted average of betas:
New Portfolio Beta = (Current Portfolio Beta * Current Portfolio Value - Sold Stock Beta * Sold Stock Value + Purchased Stock Beta * Purchased Stock Value) / New Portfolio Value
Given:
Current Portfolio Beta = 0.9
Current Portfolio Value = $150,000
Sold Stock Beta = 0.6
Sold Stock Value = $10,000
Purchased Stock Beta = 1.0
Purchased Stock Value = $10,000
New Portfolio Value = Current Portfolio Value - Sold Stock Value + Purchased Stock Value
New Portfolio Value = $150,000 - $10,000 + $10,000
New Portfolio Value = $150,000
Now we can substitute the values into the formula:
New Portfolio Beta = (0.9 * $150,000 - 0.6 * $10,000 + 1.0 * $10,000) / $150,000
Calculating the expression:
New Portfolio Beta = (135,000 - 6,000 + 10,000) / 150,000
New Portfolio Beta = 139,000 / 150,000
New Portfolio Beta = 0.9267
Rounded to 2 decimal places, the beta of the new portfolio is 0.93.
learn more about new portfolio beta here: brainly.com/question/20165286
#SPJ11
When George was 50 years old, he inherited a lump-sum of $80,000 from his father. He invested the money in an equity fund outside of his RRSP because he did not have any contribution room left. He pays the income tax on the investment return from the investment return, and reinvests his after-tax return. If the fund earns 9% per year before tax, how much will George have in the equity fund at age 65, if his marginal tax rate between now and retirement is 46%? a) $222,120 b) $411,333 c) $197,096 d) $163,019
The total amount in the equity fund after 15 years will be $222,121.90 (approximately). Thus, the correct option is (a) $222,120.
Given information:Initial Investment, P₀ = $80,000Rate of return, r = 9%Per annum tax rate, t = 46%Time period, t = 65 – 50 = 15 yearsThe total amount in the equity fund after 15 years will be equal to the present value of the initial investment plus the present value of all the reinvested returns over the 15 years.
Let the amount in the equity fund after 15 years be denoted by A and let the annual after-tax interest be denoted by R. Then, the following formula can be used:A = P₀ + R[(1 – (1 + r)⁻ᵗ)/ (1 – (1 + r (1 – t))⁻ᵗ)]A = 80,000 + R[(1 – (1.09)⁻¹⁵)/ (1 – (1.09 (1 – 0.46))⁻¹⁵)]A = 80,000 + R[(1 – 0.196)/ (1 – 0.589)]A = 80,000 + R(0.55)A = 80,000 + 0.55R ………..
(i)The annual after-tax return, R = r (1 – t) = 0.09(1 – 0.46) = 0.0486.Substituting the value of R in equation (i), we get:A = 80,000 + 0.55(0.0486)A = 80,000 + 0.02673AA = $222,121.90Therefore, the total amount in the equity fund after 15 years will be $222,121.90 (approximately). Thus, the correct option is (a) $222,120. Answer: (a) $222,120.
To know more about equity fund , refer to the link:
https://brainly.com/question/30007855#
#SPJ11