This is true that RESPA was developed to help buyers understand settlement processes and costs.
What is RESPA?In order to give homebuyers and sellers accurate settlement cost disclosures, the U.S. Congress passed the Real Estate Settlement Procedures Act (RESPA) in 1975. RESPA was also developed in order to limit the usage of company accounts, forbid kickbacks, and remove abusive tactics in the real estate settlement process. The Consumer Financial Protection Bureau is now in charge of enforcing the federal law known as RESPA (CFPB).
Hence, The Real Estate Settlement Procedures Act (RESPA) aims to lower mortgage interest by doing away with referral fees and kickbacks while also improving disclosures of settlement costs to customers.
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A firm has $5,000 of debt, $16,000 of equity, a cost of debt of 8 percent, and a cost of equity of 12 percent. What is the firm's WACC if there are no taxes
11.05% is the firm's WACC if there are no taxes.
What is WACC?The weighted average cost of capital (WACC) is a method of calculating a firm's cost of capital that assigns a proportional weight to each category of capital.
A WACC computation takes into account all capital sources, including bonds, common stock, preferred stock, and any other long-term debt.
When calculating WACC, the cost of each capital source (debt and equity) is multiplied by the relevant weight by market value, and the results are then added up to reach the final result.
Based on the ratio of equity, debt, and preferred stock a company possesses, the WACC's goal is to calculate the cost of each component of the capital structure.
WACC = [(E/V) x Re] + [(D/V) x Rd x (1 - Tc)]
E = equity market valueRe = equity costD = debt market valueV = the sum of the equity and debt market valuesRd = debt costTc = the current tax rate for corporationsWACC = [tex]\frac{16000}{21000}[/tex] ₓ [tex]12%[/tex] ₊ [tex]\frac{5000}{21000}[/tex] ₓ [tex]8[/tex]
WACC = 11.05%
Hence, 11.05% is the firm's WACC if there are no taxes.
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Carissa is budgeting for her next semester at college. She spent $50 on gas this month. Economists are predicting gas prices to rise 8% per month for the next 6 months. How much should she budget for gas if classes start next month and are 4 months long
She should budget for $243.33.
Given that she spent $50 on gas this month. Now predicted spent of gas next month is $50 × 1.08
Total Spend is the total amount spent for the whole data set, excluding any filters. Predicted spend tier is a forecast of your clients' future spending potential.
Predicted spent of gases for the four months will be as given below:
$50 ×1.08
$50 × 1.08^2
$50 × 1.08^3
$50 × 1.08^4
Total spent for the four months is computed below:
[tex]Total Spent = $50 (1.08 + 1.08^2 + 1.08^3 + 1.08^4) \\ \\ = $50 * (4.8666) \\ \\ \\ =$243.33[/tex]
Hence, if lessons begin next month and last four months, she should budget $243.33 for gas.
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Jacqueline is in the market for a new laptop. She has spent quite a bit of time gathering information and thinking about the purchase. She has asked her friends for opinions about the models they own and is happy that there are a lot of models to choose from. Jacqueline is most likely what type of adopter
Based on the fact that Jacqueline had to spend time to research before she made her decision, she is most likely an early majority.
Who are the early majority?These are people who buy a good around the same time as most people but not too log after a product has been released.
They tend to embark on a lot of research before they make a decision which is what Jacqueline is doing.
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If expected inflation increases, the same level of unemployment will be associated with: a higher rate of inflation. a lower rate of inflation. the same rate of inflation. no inflation. g
Answer:
good government and economy
Explanation:
because when the inflation rises the item becomes high in termas of buying and when it's low inflation is helps the economy plus
Mathai Company has sales of $4,800,000 for the current year. The book value of its fixed assets at the beginning of the year was $1,450,000 and at the end of the year was $1,600,000. The fixed asset turnover ratio for Mathai is
The answer is 64.
Given,
Mathai Company has sales of $4,800,000 for the current year.
Fixed assets at the beginning of the year were $1,450,000.
Fixed assets at the end of the year were $1,600,000.
An efficiency ratio called fixed asset turnover (FAT) ratio shows how effectively or efficiently a company uses fixed assets to produce sales. This ratio, determined over an annual period, divides net sales by average fixed assets.
Therefore, the Fixed asset ratio = Net sales/Average fixed assets
where:
Net Sales = Gross sales - returns and allowances
Average Fixed Assets = (NABB - Ending Balance)/2
NABB = Net fixed assets' beginning balance
Now substituting the values in the above equation we get,
Fixed asset ratio = $4,800,000 / {($1,600,000 - $1,450,000)/2}
= $4,800,000/$75,000
= 64
Hence, The fixed asset turnover ratio for Mathai is 64.
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As a type of sales promotion, Blank______ have the ability to influence you at the instant you are noticing different products in your supermarket aisle.
As a type of sales promotion, point of purchase display have the ability to influence you at the instant you are noticing different products in your supermarket aisle.
A specific type of sales promotion that can be seen near, on, or adjacent to a checkout counter are point-of-sale displays (POS) (the "point of sale"). They are meant to get customers to notice the merchandise. These could be brand-new items, a limited-time promotion, or advertisements for special occasions like seasonal or holiday sales.Coupons offer a product's price reduction right away. The manufacturer later reimburses the retailer for the amount of the coupon.Consumer, trade, and sales force promotions are three different categories of sales promotion. Consumer promotion, trade promotion, and sales force promotion are the three different ways that sales promotion can be done. These sales marketing strategies are frequently referred to as tools or techniques.What are the sales promotion strategies?A sales promotion strategy, also referred to as a discounting strategy, is a marketing approach to motivating customers to take a specific, pre-determined action through sales discounts, incentives, or offers.
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Matilda developed a toothpaste using only natural ingredients, and she has been quite successful selling the product in health food stores and some grocery stores. She has recently developed a toothbrush using bamboo and natural components. Matilda is considering a ________, giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness.
Matilda is considering a brand extension giving the toothbrush the same brand name as the toothpaste in order to create greater brand awareness.
Brand Extension: What is it?Using the tactic of brand extension, a business develops a new product category under its well-known brand name. It facilitates the easy launch of new items, increases profits, lowers startup costs for new businesses, and satisfies client demands.
What benefits can brand expansion offer?
It doesn't necessarily have to be related to your business if you wish to grow your enterprise and develop a new good or service. Brands frequently use brand extension because it can: facilitate the launch of products in new categories; allow brands to satisfy the needs and wants of their customers; increase revenue for businesses; lower costs associated with starting and developing a new business; encourage customers to try new products from reputable brands; lessen risks for consumers because they can buy a variety of products from reputable brands, and facilitate the efficient use of promotion budgets.
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Common names for top-level managers are vice president, chief executive officer, and chief operating officer. True or false?.
A unit volume objectives for pricing should be used judiciously because higher volume goals can sometimes result in Blank______.
A unit volume objective for pricing should be used judiciously because higher volume goals can sometimes result in higher pricing. This is further explained below.
What is the pricing?Generally, set the price for the goods or services to be exchanged.
In conclusion, When setting prices, a unit volume aim should be utilized with caution since volume objectives that are more ambitious may often lead to higher prices.
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Answer:
drastic price cutting that drives down profits
Explanation:
Which of the following statements is TRUE? Supply chain management was invented by the auto manufacturing industry Strategic partnerships are seen as one of the foundations of supply chain management Purchasing is seen as the final and most difficult step in the supply chain Service response logistics is the digital distribution of services
B) Strategic partnerships are seen as one of the foundations of supply chain management.
What exactly does a strategic partnership entail?A commercial collaboration that involves the sharing of resources between two or more people or organizations in order to benefit everyone involved is referred to as a strategic partnership. Strategic partners frequently share the risks and benefits of the decisions made by both organizations and are typically non-competing businesses.
What are the six different kinds of strategic alliances?Marketing collaborationsSupply alliancesSupply-chain CollaborationsPartnerships for integrationTechnology collaborationsFinancial collaborationsLearn more about strategic alliances with the help of the given link:
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Harrod Company paid $5,300 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $5,300, and no adjustments had been made previously. The adjusting entry required on December 31 is:
Debit Insurance Expense $2,650;
Credit Prepaid Insurance $1325
Explanation:
When the asset is charged to expense, the journal entry is to debit the insurance expense account and credit the prepaid insurance account.
Total Prepaid Insurance= $5,300 Monthly Insurance=Total Prepaid
Insurance / 4 = $1,325
Insurance expenses for 2 month (November and December)= $1,325 * 2 = $2650
There is no cash transaction in this adjusting entry
When insurance expenses increase= Debit
When decrease in prepaid expenses=
Credit
Debit Insurance Expense $2,650;
Credit Prepaid Insurance $1325
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Comet Company accumulated the following account information for the year: Direct materials cost $ 6,000 Indirect materials cost 2,000 Indirect labor cost 5,000 Maintenance of factory equipment 2,800 Direct labor cost 7,000 Using the above information, total factory overhead costs equal: Multiple Choice $7,800. $16,800. $15,800. $13,000. $9,800.
The total factory overhead costs equal is found to be $9,800.
What is overhead costs?The expenditures involved in running a firm that aren't related to developing or manufacturing a good or service are known as overhead costs, often known as overhead or operating expenses. They are the costs a business must pay to remain open, regardless of how successful it is.
Calculation for the factory overhead costs:
Beginning raw materials inventory $ 6,000
Indirect materials cost $2,000
Indirect labour cost $5,000
Maintenance of factory equipment $2,800
Direct labour cost $7,000
Manufacturing overhead = (indirect materials + indirect labor + Maintenance of factory equipment)
Manufacturing overhead = $2000 + $5000 + $2800
= $9,800
Therefore, total factory overhead costs equal to $9,800.
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As inventory and property plant and equipment on the balance sheet are consumed, they are reflected: Select one: a. Both as an expense on the income statement and as a use of cash on the statement of cash flows because the financial statements articulate b. On the balance sheet because assets are never consumed c. As a use of cash on the statement of cash flows d. As a revenue on the income statement e. As an expense on the income statement
E) As an expense on the income statement.
An expense is what?The operating costs incurred by a business in order to produce revenue are referred to as expenses. According to a proverb, "making money costs money."
Paying suppliers, paying employees, leasing facilities, and depreciating equipment are examples of frequent costs. Businesses are permitted to deduct tax-deductible expenses from their taxable revenue on their income tax returns in order to reduce their tax liability. However, there are tight guidelines set forth by the Internal Revenue Service (IRS) regarding which costs companies may deduct.
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King, Incorporated, has debt outstanding with a face value of $5.9 million. The value of the firm if it were entirely financed by equity would be $27.9 million. The company also has 410,000 shares of stock outstanding that sell at a price of $55 per share. The corporate tax rate is 24 percent. What is the decrease in the value of the company due to expected bankruptcy costs
The value of the company due to expected bankruptcy costs is, $866,000.
What is tax explain?Taxes are compulsory payments made by a government organization, whether local, regional, or federal, to people or businesses. Tax revenues are used to fund a variety of government initiatives, such as Social Security and Medicare as well as public infrastructure and services like roads and schools.What is a tax example?Sales taxes, value-added taxes (VAT), taxes on any component of production or manufacturing, taxes on legal activities, and customs or import charges are a few examples. A sizable percentage of consumer expenditures are subject to general sales taxes.What is the purpose of tax?Taxes on every aspect of production or manufacture, taxes on legal activities, general and selective sales taxes, value-added taxes (VAT), and customs or import charges are a few examples. A sizable amount of consumer spending is subject to general sales taxes, which are levies.According to M & M proportion I with taxes, the value of the levered firm is:
V (Firm) = V (Equity) + V (Debt).
= $27,900,000 + 0.24(5,900,000).
= $27,900,000 + $1,416,000.
= $29,316,000.
Total market value of the firm:= Market value of the debt + Market value of equity.
= $5,900,000 + stock outstanding × Selling price per share.
= $5,900,000 + 410,000 × $55 per share.
= $28,450,000.
With non-marketed claims, such as bankruptcy costs, we would expect the two values to be the same.
The differences are the non-marketed claims:
Expected bankruptcy costs = $29,316,000 - $28,450,000.
= $866,000.
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A company's Office Supplies account shows a beginning balance of $780 and an ending balance of $760. If office supplies expense for the year is $4,000, what amount of office supplies was purchased during the period
The answer is $3880.
Given, that the Office Supplies account beginning balance = $780
the Office Supplies account ending balance = $760
office supplies expense for the year = $4,000
office supplies purchased during the period will be calculated as :
Particulars Amount (in $)
office supplies expense for the year 4000
Add: Office Supplies account ending balance 760
Less: Office Supplies account beginning balance (780)
office supplies purchased during the period 3880
Hence, the amount of office supplies purchased during the period for the given case is $3880.
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An example of a period cost is: Multiple Choice rent on a headquarters building. direct materials. salary of a factory supervisor. fire insurance on a factory building.
Rent on headquarters building is the period cost.
Period costs are costs which are associated for full period and can not be booked as prepaid costs. From the above given costs rent on headquarters building is period cost.
Period expenses are costs that are not connected to or related to the generation of inventories in management and cost accounting. Selling, general, and administrative (SG&A) expenditures, marketing expenses, CEO salaries, and rent expense for a corporate office are all examples. Since the expenditures are unrelated to inventory production, they are expensed in the period in which they are incurred. In short, all costs that are not involved in the production of a product are the period costs.
Therefore, the answer is rent on headquarters building.
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If your calculated intrinsic value differed substantially from the current market price, and if your views are consistent with those of most investors (the marginal investor), what would happen in the marketplace
The deviation of stock prices from their intrinsic values makes the investors to take a quick advantage of this mispricing. The mispricing occurs either by buying the undervalued stocks or selling the overvalued stocks.
Thus the investor's takes decisions that drive to their new constancy level, according to the information of change in prices.
In case if some of the investors have irrational views, they hold the losers too long and sell the winners too quickly. Thus, a practical market will have irrational investors also.
If the market itself is not consistent the mispricing continues for a relatively longer period. Then the investors who are consistent will be losing higher amounts.
So, while investing in the market it is better to assume the intrinsic value is approximately equal to the market price of the stock. But periodically major changes may occur, which drives the stock price move up or down.
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what are two resources within you that are important when choosing a career you would like
Answer:
Your happiness
education and training
social environment
Explanation:
Which capital budgeting decision method finds the present value of each cash flow before calculating a payback period
In determining a payback period, the discounted payback period is employed in capital budgeting decisions to determine the present value of each cash flow.
The discounted payback time is a capital planning process used to estimate a project's profitability. A discounted payback period expresses the number of years required to recoup the initial investment by discounting future cash flows and accounting for the time value of money. The measure is used to assess a project's viability and profitability.
Since it assumes only one upfront investment and does not account for the time value of money, the more simplified payback period formula, which simply divides the total cash outlay for the project by the average annual cash flows, does not provide an accurate answer to the question of whether or not to take on a project.
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Jada left a job that paid $40,000 per year. At the end of her first year in business, her revenues summed to $90,000, and her explicit costs were $50,000. Also, in order to fund her business startup, Jada cashed in a $20,000 certificate of deposit that was providing an annual yield of 5%. Ceteris paribus, Jada's economic profit is
If Jada left a job that paid $40,000 per year. Jada's economic profit is -$1,000.
Economic profitUsing this formula
Economic profit=Total revenue -(Explicit costs + implicit costs)
Let plug in the formula
Economic profit=$90,000-[$50,000+$40,000+($20,000×5%)]
Economic profit=$90,000-($50,000+$40,000+$1,000)
Economic profit=$90,000-$91,000
Economic profit=-$1,000
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The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as ______.
The first category of start-up businesses are those formed as high-growth, often high-tech, ventures and are referred to as venture capital-backed firms.
What is venture capital?Venture capital can be defined as a business financing strategy meant for startups which require high capital but also have high risk in return.
It is to be noted that a venture capital firms use their control of the companies they invest in to protect those investments.
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You own a car that gets great gas mileage, so you drive it a lot. However, you've noticed
that your tires are getting pretty bald and you'll need to replace them. this is an example
of:
The given scenario is a good example of overuse of a car.
What is Overusing?This refers to the situation where a person makes use of a thing or product, beyond its normal use and causes it to breakdown or wear and tear.
Hence, we can see that in the given scenario, a car has a great mileage which means it has been driven a lot and as a result of this, the tires wear out and needs replacement and this is an example of overuse.
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Answer:
This is an example of supply. The scenario describes the need to replace bald tires, which is related to the supply of tires rather than substitute goods, elasticity, or complementary goods.
Explanation:
According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must ______.
According to the VRIO framework, to fully exploit the competitive potential of its resources, capabilities, and competencies, a firm must be organized to capture value.
A resource is useful if it enables a company to take advantage of an outside opportunity or counteract an outside threat.
The VRIO framework is an internal examination that aids companies in discovering the benefits and assets that offer them a competitive edge. The acronym for the many success metrics that apply to your organization is the VRIO framework. Value, rarity, copyability, and organization are all included.
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g When choosing a forecasting technique, a critical trade-off that must be considered is that between: time series and associative. seasonality and cyclicality. cost and accuracy. length and duration. simplicity and complexity.
A critical trade-off which must be considered when choosing a forecasting technique is that between: C. cost and accuracy.
What is a forecasting technique?A forecasting technique can be defined as a process through which predictions can be made about the economy, especially based on macroeconomic and microeconomic conditions such as:
GDPInflationUnemploymentIn Economics, cost and accuracy is a critical trade-off which must be considered when choosing a forecasting technique.
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Qingyi develops a statistical model to predict the labor demands for a six-county area. In doing so, Qingyi is using ______.
Answer: Qingyi is using Trend Analysis
Explanation: Trend analysis is the technical analysis that attempts to predict future performance based on past trend data. This analysis generally uses historical data, for example, analyzing market movements in past trends, to make long-term decisions regarding investments in the future.
Qingyi develops a statistical model to predict the labor demands for a six-county area. In doing so, Qingyi is using trend analysis.
What is trend analysis?The common process of gathering data and looking for patterns in order to identify trends is known as trend analysis. The phrase has more clearly defined meanings in several academic disciplines.Although trend analysis is frequently used to forecast future events, it can also be used to estimate ambiguous historical events, such as the approximate number of ancient kings who likely reigned between two dates, using information such as the average number of years other known kings were in power.Who are laborers?A worker is a person who performs manual labor, often in the manufacturing and construction workforces. Workers belong to a class of wage earners whose only substantial material asset is their work.Therefore, Qingyi develops a statistical model to predict the labor demands for a six-county area. In doing so, Qingyi is using trend analysis.
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which categoryh of inventory holding costs would be much higher than average for rapidly chaning industries
The correct option is (c) i.e, The pilferage, scrap, and obsolescence category of inventory holding costs are much higher than average for rapid-change industries such as PCs and cell phones.
What does Inventory Holding Cost mean?Expenses associated with keeping inventory at a warehouse are known as inventory holding costs. Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms.
Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.
Businesses must take demand planning and demand sensing into account when these prices rise. These technologies can help businesses keep the right amount of stock on hand.
Therefore, The category of inventory holding costs that are depicted, based on the information provided comprises pilferage, scrap, and obsolescence.
The complete question is:
Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?
A) housing costs
B) material handling costs
C) pilferage, scrap, and obsolescence
D) investment costs
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Road Kill Restaurant had the following account balances. The change in these accounts represents a net ____ of cash for the year in the amount of _____. Beginning Balance Ending Balance Accounts receivable$28,775 $26,480 Accounts payable 41,465 42,770 Inventory 20,885 24,690
The change in these accounts represents a net USE of cash for the year in the amount of $200
SOLUTION :-
A decrease in current assets such as accounts receivable, inventory is a source of cash and vice-versa. On the other hand a decrease in current liabilities such as accounts payable, creditors is a use of cash and vice-versa.
Decrease in Accounts Receivable (28400-26120) = $2280
Increase in Accounts Payable (42380-41060) = $1320
Increase in Inventory (24360-20540) = ($3820)
Net Use of Cash = $200.
Accounts payable (AP) are amounts due to vendors or suppliers for goods or services received that have not yet been paid for.
Accounts receivable are the funds that customers owe your company for products or services that have been invoiced
Therefore, The change in these accounts represents a net use of cash for the year in the amount of $200.
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The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $3,700 a month. If the company decides to make the parts, total costs will be:
Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.
What is the cost of producing the switches?This can be found as:
= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent
= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)
= $205,900
If they bought the switches at $36, they would cost:
= 36 x 5,000
= $180,000
Its cheaper to buy by:
= 205,900 - 180,000
= $25,900
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The term scope creep is best described as: Group of answer choices increasing featurism a fundamental change in project scope a project team's inability to define the project's scope the project slowdown caused by changes in the project MOV a scary mouthwash salesman
Answer:A a project teams inability to define the projects scope b a fundamental change in project scope c the project slowdown caused by changes in the project MOV d increasing featurism e a scary mouthwash salesman. What is scope creep.
Explanation:
Lawrence Wright is slow in math. He has before him the equation of (ending value minus beginning value) and income return totalled, then divided by beginning value. This is used to find the Question 22 options: serialized rate of return. capital loss capital gain. rate of return. rate of inflation.
The equation of (ending value minus beginning value) and income return totalled, then divided by beginning value is used to find "rate of return".
What is income returns?The portion of a fund's total returns that came through income distributions is known as the income return. For bond funds, income return will frequently be larger than capital return, while for stock funds, it will typically be lower. The fund's total return is calculated by adding the income return and the capital return together.
Rate of Return- The net gain or loss of an investment over a given time period, stated as a percentage of the investment's starting cost, is known as a rate of return (RoR).
Some key features of rate of return are-
ROI is computed by first dividing the net return by the investment's cost, then multiplying the result by 100. This new number, which represents the net return, is then obtained by subtracting the investment's original value from its final value.According to conventional thinking, a fair return on an investment in stocks is one that is at least 7 percent annually. Additionally, this relates to the S&P 500's average annual return when inflation is taken into account.To know more about internal rate of return, here
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