What is the rate of return on investment

Assignment Help Macroeconomics
Reference no: EM13317424

1. Calculating Net Asset Value. Given the information below, calculate the net asset value for the Boston Equity mutual fund.

Total assets $225,000,000

Total liabilities 5,000,000

Total number of shares 4,400,000

2. Calculating the Rate of Return of Investment Using Financial Leverage. Suppose Shaan invested just $10,000 of his own money and had a $90,000 mortgage with an interest rate of 8.5 percent. If after three years he sold the property for $120,000.

a. What is his gross profit?

b. What is his net profit/loss?

c. What is the rate of return on investment? 

3. Shelly s assets include money in the checking and savings accounts, investments in stocks and mutual funds, personal property, such as furniture, appliances, an automobile, coin collection and jewelry. Shelly calculates that her total assets are $108,800. Her current unpaid bills, including an auto loan, credit card balances, and taxes total $16,300. 

Calculate Shelly s net worth.

4. Barry and his wife Mary have accumulated over $4 million during their 45 years of marriage. They have three children and five grandchildren.

A- How much money can Barry and Mary gift to their children in 2008 without any gift tax liability?

B- How much money can Barry and Mary gift to their grandchildren?

C- What is the total amount of estate removed from Barry and Mary s estate?

5. Dave bought a rental property for $200,000 cash. One year later, he sold it for $240,000.

A- What was the return on his $200,000 investment?

B- Suppose Dave invested only $20,000 of his own money and borrowed $180,000 (interest free from his rich father). What was his return on investment?

Reference no: EM13317424

Questions Cloud

Why do you think rental companies turned their normal : In 2006 rental car companies often charged more to rent a compact car than an SUV or a luxury vehicle Why do you think rental companies turned their normal pricing structure on its head?
What is the amount of economic investment that has resulted : Assume that a national restaurant firm called BBQ builds 10 new restaurants at a cost of $1 million per restaurant. It outfits each restaurant with an additional $200,000 of equipment and furnishings
Provide the highest level of marginal utility per dollar : When the product demand curve is Q = 130 - 20P, and price is increased from P1= $4 to P2= $6,the arc price elasticity of demand is:
Challenge the assumptions of constant returns and perfect : In the article, "Is Free Trade Pass ," Paul Krugman summarizes and explains research that challenges, and presents alternatives to, the assumptions of classical trade theory based on comparative advantage. In a 4-6 page paper (12-point font, double-s..
What is the rate of return on investment : Shelly s assets include money in the checking and savings accounts, investments in stocks and mutual funds, personal property, such as furniture, appliances, an automobile, coin collection and jewelry. Shelly calculates that her total assets are $108..
Write an executive summary identifying appropriate design : Pick one product with which you are familiar. Complete three to five line items such as Job shop, batch, assembly line, or continuous flow approach, on the Process Design Matrix.
How would you conclusion change for the winter months : How would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month?
Show what the demand curve would look like if you sold : The average retail price of the cookbooks will be $30, and their average cost will be $20.Assume that the equation for demand is Q = 40,000 500P, where
What problems do cartels face in getting all members to : What problems do cartels face in getting all members to cooperate Which specific problems are important for OPEC?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Is the subsiquent events cause the dollar to appreciate

Is the subsiquent events cause the dollar to appreciate or depreciate against the Euro.

  Predict what would have occurred had the monopoly succeeded

Identify a situation in the past 50 years in which the government used antitrust policies to stop a monopoly from occurring. Include the circumstances of the proposed monopoly and the reason the government stepped in.

  Characteristics of four types of markets

In the following list a number of well-known companies and the products that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, and oligopoly)

  Explain why the production possibilites frontier has

All three spend half their time on each activity (C)iv. Larry spends half his time on each activity, while Moeonly washes cars and Curly only mows lawns (D)

  Explain did tomato fest suffer an economic loss

Fierce storms in October 2004 caused Tomato Fest Organic Heirlooms Farm to end its tomato harvest two weeks early. According to Gary Ibsen, a partner in this small business (Carolyn said, "Tomatoes in Trouble," San Francisco Chronicle, October 29,..

  Explain how is the current account related nation

Explain how is the current account related to a country's business cycle. What is the relationship between a country's net financial inflow and its current account.

  What are the trade-offs that bag by faces in chooseing

Baby copy company is a worldwide producer of copy machines. It manufactures 10 different copieers, ranging from low-end desktop copiers that sell for a few hundred dollars to high volume document machines that retail for over $200,000.

  Computing economic cost

What is your economic cost of buying a ticket? What is your economic cost of attending the game (once you already bought the ticket)?

  Question about quantity demand

The question asked was assume that the government imposes a price ceiling on toasters. In particular, suppose that it decrees that a toaster cannot sell for more than $14.

  Calculate the numerical value of equilibrium level of income

Suppose that Investment spending of 420 is added (I = 420). Find Ye1. • Then suppose that we find that ΔI = 40. Find Ye2.

  Illustrate what are the long-run effects on prices

Illustrate what are the long-run effects on prices, output, and profits in monopolistic and monopolistically competitive industries.

  Research authoritative articles using the news

Identify some of the costs (pecuniary and nonpecuniary) associated with the antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigat..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd