Rate of Return on InvestmentUsing Financial Leverage [LO17-1]Suppose Shaan invested just $13,800 ofhis own money and had a $124,200mortgage with an interest rate of 8.5percent. After three years, he sold theproperty for $165,600.a. What is his gross profit?b. What is his net profit or loss?Note: Negative amount should beindicated by a minus sign.c. What is the rate of return oninvestment?Note: Negative amount should beindicated by a minus sign. Enter youranswer as a percent rounded to 1decimal place.a. Gross profitb.c. Percent return on investment

To solve the problem, we need to calculate Shaan's gross profit, net profit or loss, and the rate of…

Answered: Rate of Return on Investment Using…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Typically _____ of shareholders who vote in the shareholder meeting approve of executive pay plans at their respective companies. A. Over 95% B. Less than 50% C. Less than 25% D. Less than 10%
5. Patricia owns significant shares in an airline. There has been much speculation in the news that the price of oil may go up, negatively impacting the airline's profits. Patricia is contemplating buying stock in an oil and gas company as a way to cover her investment. This risk management strategy is commonly known as a. Self-insurance b. Hedging c. Loss Prevention d. Avoidance
_______ J. R. Imax, a financial investor, wants to control the Simex Company. So far he has been unsuccessful in purchasing enough stock to give him control. To reach his goal, which technique should he use to gather enough stockholder votes to control the company?a. Poison pillb. Liability takeoverc. Mergerd. Acquisitione. Proxy fight
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Under federal law, a tax exempt Health Savings Account can only be opened for an individual who is Ο Α. covered by a qualified High Deductible Health Plan covered by Long Term Care Insurance entitled to Medicare benefits eligible to be claimed as a dependent on another person's tax return B. OC. O D.
4 of 15 Which one of the following statements is false? The ask price is the lowest price at which a seller will sell When liquidity is low, market brokers require a larger bid-ask spread O The bid price will almost always be higher than the ask price O When bid-ask spreads are high, it suggests there are many sellers and few buyers O The bid price is the highest price a buyer will pay O When trading volumes are low the market is illiquid None of the above O All of the above
Multiple choice
The ? agrees to make every effort to keep the apprentice employed; however, he / she / they cannot ? employment.a.business manager / guaranteeb.Committee AJATC / guaranteec.director / gived.president / supply
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One company offers a candidate for employment 1,200 shares os stock options. Another company provides the same candidates an offer of 400 shares of restricted stock. Asuume both offers provide the same salary and comparable benefits. A.Both offers are equally valuable B. The offer with stock options is more valuable C. The odder with restricted stock is more valuable D. We need more information to determine which offer is more valuable
A North Carolina broker who has received three simultaneous offers on a property listed with the broker may disclose the terms of the offers to all offerors only if O A. all offerors have given the broker express permission to do so. O B. the broker discloses the same information to all offerors. O C. the seller has given the broker express permission to do so. O D. the broker does not disclose the prices offered. IF THIS ANSWER IS (C) WHY OR NOT NOT (a)

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