Both of them would make the same decision.
What is meant by interests?Simply said, interest is the cost of borrowing money from a lender. Thus, when repaying the loan, you will pay the amount you borrowed plus an additional payment — which is the interest — in addition to the principal. Different methods are used by lenders to impose interest fees. There are many different types of interest, but the most common ones include compound interest, annual percentage rate, prime interest rate, discounted interest rate, simple interest, and fixed interest. Different Interests There are three different kinds of interest: simple (regular), accumulated, and compound.Given that they are two people with the same occupations and interests, they both lost $10 in some way. That generally suggests they will both decide to see the same play and pay an additional $10 to do so. As a result, because Martha and Sarah have similar tastes, the cost and value of viewing the show together are equal.
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paulhill organic produce wants to maintain its current dividend policy, which is a payout ratio of 25 percent. the firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. given these requirements, the maximum rate at which paulhill can grow is equal to:
The sustainable growth rate (SGR) is the greatest growth rate a corporation or social enterprise may sustain without raising equity or debt.
Thus, it is the rate at which the company may grow with its own internal revenue without borrowing. The SGR aims to maximize sales and revenue growth without increasing financial leverage. Achieving the SGR can assist a corporation to avoid financial difficulty and over-leverage.
Businesses use the SGR to foresee future expansion, invest capital, estimate cash flow, and formulate borrowing policies. Cutting dividends can be a tough move for companies seeking rapid expansion.
Whether or not a company is effectively managing day-to-day operations, such as paying its bills and getting paid on time, can be gauged by looking at its SGR.
This rate is used to categorize businesses according to their maturity level and is therefore a long-term rate. Accounting payables must be handled promptly to avoid disruptions in cash flow.
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The right way of asking the question is:
Paulhill Organic Produce wants to maintain its current dividend policy, which is a payout ratio of 25 percent. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements, the maximum rate at which Paulhill can grow is equal to:
markham company has a contribution margin ratio of 25%. the company is considering a proposal that will increase sales by $166,000. what increase in profit can be expected assuming total fixed costs increase by $28,000?
Profit should grow by $12,500 if total fixed expenses rise by $28,000. The correct answer is 12,500.
What is the fixed cost?A fixed cost is the cost of a company expense that does not fluctuate regardless of the number of goods and services produced or sold. Fixed costs are ongoing expenses that are not directly tied to output, such as rent, interest payments, and insurance.
Fixed expenses are often indirect since they are unrelated to a company's production of goods or services. Shutdown points are commonly used to minimize fixed expenses. These costs are one of two categories of company expenses (the other being variable costs) that add up to total costs.
Increase (Decrease) in profits
= Additional contribution margin created - Increase in fixed costs
= (150,000×25%) - 25,000
= 37,500 - 25,000
= $12,500
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a feed and grain shop makes 140 bushels of a mixture of corn and oats. if a bushel of oats costs 80 cents and a bushel of corn costs $1.50, how many bushels of each are needed to make a mix that sells at $1.20 a bushel?
80 bushels of each are needed to make a mix that sells at $1.20 a bushel.
What are the benefits of oats?According to research, oats and oatmeal provide several health benefits. Weight loss decreased blood sugar levels, and a lower risk of heart disease are among the benefits. Oats are one of the healthiest grains on the planet. They're a gluten-free whole grain that's high in vitamins, minerals, fiber, and antioxidants.
Let
x = bushels of oats.
y = bushels of corn.
We have an equation:
x+y= 140 [1]
x bushels of oats for $80 A bushel is worth 0.80 x dollars.
At $1.50 per bushel, y bushels of maize are worth 11.50 y dollars.
The total value of the mixture is:
0.80x+1.50y dollars.
However, we know that the blend will be 140 bushels at $1.20 a bushel.
We simply expressed the mixture's value in two ways.
We have another equation:
0.8x+1.5y=168 [2]
We have a system of equations:
0.8x+1.5y =168
Therefore,
X = 60
Y = 80
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what forms of organization will enable the owners of ​, ​inc., to limit their risk of loss to the amounts they have invested in the​ business?
The owners of Columbia Signs, Inc. will be able to restrict their loss risk to the sums they having invested in the company Corporation thanks to various organizational structures.
What various kind of business organizations are there?Some business owners choose different forms of organization to suit their unique needs in addition to the three generally used business organization types—sole proprietorship, partnership, and ordinary corporations.
Which companies allow their owners to minimize their liability?There are some business structures that let owners restrict their liability. Corporations and limited partnerships are examples of these.
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the dawes plan of 1924 select one: a. called for the united states to lend money to germany to meet its reparation payments. b. was designed to help england and france make their debt payments to the united states. c. called for britain and france to reduce the amount of german reparation payments. d. called for both the united states to lend money to germany to meet its reparation payments, and britain and france to reduce the amount of german reparation payments. e. all these answers are correct.
The Dawes Plan of 1924 called for the United States to lend money to Germany to meet its reparation payments.
What is the Dawes Plan of 1924?The annual reparation payments made by Germany would be lowered under the Dawes Plan, then increase as its economy grew; the total sum to be paid, however, was not specified. Berlin's economic policymaking would be restructured under foreign control, and the Reichsmark would be introduced as a new currency. The question of the World War I reparations that Germany was required to pay was satisfactorily settled by the Dawes Plan in 1924. Following World War I and the Treaty of Versailles, it resolved a diplomatic crisis in Europe. The Dawes Plan was a war reparations arrangement that cut down on Germany's yearly payments, made payment contingent upon economic development, and provided sizable US loans to aid in recovery.All of the options are correct.The complete question is,
The Dawes Plan of 1924
A. called for the United States to lend money to Germany to meet its reparation payments.
B. was designed to help England and France make their debt payments to the United States.
C. called for Britain and France to reduce the amount of German reparation payments.
D. called for both the United States to lend money to Germany to meet its reparation payments, and Britain and France to reduce the amount of German reparation payments.
E. All these answers are correct.
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what are the benefits of living a debt free life
Answer:
1.Peaceful life. If one is living a life withought debt then they would have absolutely nothing to worry about and they wouldn't be on the run from people they owe or flee from a country just because of the banks they owe but they would be free to go out and have nothing to worry out.
2.Less stress. One doesn't have to be stressed out because the are owing someone else and they need it very urgently but they would enjoy life and live peaceful
3.More of your income is available to you. Your would have to use your salary to take care of the people you are owing
True or False. If the average salary of an accountant increases by 50% while the average salary of teachers increase by 20%, we would expect students to shift majors from education to accounting because people respond to incentives.
True. People are prone to react to financial incentives, so if the average wage of an accountant rises by 50% whereas the average annual salary of a teacher rises by 20%.
What is an example of an incentive?Extra vacation time, awards, gifts, family benefits, or even work-related perks like projects are a few examples of these incentives. These kinds of rewards tend to increase job satisfaction among employees because they make them feel like their efforts are valued more.
What do incentives mean in the business world?An object, valuable item, desired action, or event is referred to as a "incentive" if it prompts an employee to engage in more of the activity that the employer wanted them to by way of the selected incentive.
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we deposit $10 into the account that pays 0.5% per month in the first month, $20 in the second month, $30 in the third month and so on. how much money will the account have after 24 months?
The account will have $7,640 after 24 months.
If you deposit $10 into an account that pays 0.5% per month in the first month, $20 in the second month, $30 in the third month and so on, the account will have a total of $7,640 after 24 months.
To calculate this, we can use the formula for sum of an arithmetic sequence, which is S = n/2 * (a + l), where S is the sum, n is the number of months, a is the first term and l is the last term.
In this case, n = 24, a = 10 and l = 350.
Plugging this into the equation, we get S = 24/2 * (10 + 350) = 7,640.
Therefore, after 24 months, the account will have a total of $7,640.
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ryron bank, a private bank, introduced internet banking facilities for its customers after the government de-monetized hundred dollar bills. customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. in this context, which dimension of the business environment is affected the most?
technological environment dimension of the business environment is affected the most based on the context.
A company or entrepreneurial entity that does business in the professional, commercial, or industrial sectors is known as a business. Various variables can affect the existence of distinct company kinds. There are both for-profit and nonprofit organisations. They differ from one another in a similar way based on who owns them. There are, for instance, companies, partnerships, and many other business structures. The actions and endeavours of a person engaged in the business of creating or providing goods or services with the intention of doing so for profit are likewise considered to be business. The term "business" designates an innovative person, group, or organisation that engages in commercial activity. They could be business-related, industrial, or something else. As a business owner, there is no cap on the amount and rate of income you may generate.
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a company that loans money to an organization is a(n) multiple choice question. creditor supplier investor shareholder
A creditor is a business that lends money to an organization. The correct answer is a creditor.
An entity that loans money or offers credit to another party is known as a creditor. In this situation, the business is the lender and the recipient of the loan is the borrower.
The business might anticipate that the borrower will pay back the loan over a specific time period, plus interest. A supplier is a company or individual who offers products or services to another party.
A person or entity that invests money in a project or business with the hope of making a profit is known as an investor. A shareholder is an individual or entity that has stock in a corporation.
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9. when cash is paid for insurance, (a) prepaid insurance is decreased. (b) prepaid insurance is credited. (c) prepaid insurance is increased. (d) none of these.
When cash is paid for insurance "prepaid insurance is increased".
Hence, option (C) is the correct choice.
The asset account Prepaid Insurance diminishes when cash is used to pay for insurance. Both the cash account and the sales account are raised when money from sales is received.
A prepaid account, such as Prepaid Insurance, is debited and the cash account is credited whenever a payment is made that prepays a charge. This shows the prepayment as an asset on the balance sheet of the business.
Prepaid insurance refers to payments made in advance to insurers by people and corporations for insurance services or coverage. Although premiums are typically paid a full year in advance, they occasionally may cover more than a full year.
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Out of the provided choices, it can be said that when cash is paid for insurance, the prepaid insurance is increased. Therefore, the option C holds true.
Prepaid insurance can be ideally represented as the amount of premium that is paid towards its head even before it is due. The journal entry for insurance premium is to be done in such a way that cash is credited, and insurance premium is debited, thereby indicating an increase in the amount of the insurance premium paid on the balance sheet as on that date.
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what is the difference between primary and secondary manufacturing industries? pick a raw material you are familiar with and explain where primary manufacture of the stock ends and secondary manufacture of the product begins.
The primary sector is concerned with the extraction and gathering of natural materials from the soil (for example, agriculture, fishing and mining). The secondary sector includes processing (for example, the processing of agricultural products), manufacturing, and building.
Primary: entails the extraction and manufacture of raw resources such as maize, coal, wood, and iron. Secondary: includes the transition of raw or intermediate resources into finished commodities, such as steel into automobiles or textiles into apparel. (A builder and a dressmaker are examples of secondary-sector jobs.)
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a major purpose of preparing closing entries is to question content area bottom part 1 a. update the retained earnings account. b. close out the supplies account. c. zero out the liability accounts. d. adjust the asset accounts to their correct current balances.
Option D is correct. The closing entries also adjust the asset accounts to the correct current balances, zero out the liability accounts and close the supplies account. Closings are necessary to bring the balances of all permanent accounts to zero so that they can be prepared for the next accounting period.
The major purpose of closings is to transfer temporary account balances to a permanent retained earnings account at the end of the accounting period. This is done by closing the temporary income, expense and dividend accounts and transferring the balances to the retained earnings account. This process ensures that the books are up to date and ready for the next term. It also ensures that the financial statements accurately reflect the financial position of the company at the end of the accounting period.
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The purpose of a form letter or template in business writing is to
Multiple Choice
a. develop creative solutions.
b. outsource customer complaints.
c. avoid having to deal with clients.
d. resolve routine situations.
e. eliminate the need for writing
Option (D) is correct, The purpose of a form letter or template in business writing is to resolve routine situations.
What is the purpose of a template?a paper or electronic document that is used and having a predetermined page layout & style that can be changed to create the final product that is needed. A template will show where particular page elements should go and may include mandatory standard text or graphics.
When ought a template to be used?When designing an interface that operates on a variety of unrelated object types, templates are useful. For container class where it's important to generalize the objects inside the box while maintaining type information, templates make the most sense.
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the financial institution most likely to charge the highest rate for a loan would be a
They also frequently lend to borrowers who pose a higher risk of default, making them non-deposit taking institutions like finance companies or loan sharks that must charge higher interest rates to offset the higher risk.
A finance company? What do visitors mean by that?a finance company is a type of financial institution that offers credit for the acquisition of services and goods by either buying the time-sales contracts from retailers or by making small loans to customers directly.
What is an illustration of a finance companyFor instance, many customers of General Motors who buy cars get their loans from General Electric Acknowledgement Corporation (GMAC). Ford Motor Credit Corporation (FMCC) is owned by the Ford Motor Company, and Daimler Peugeot Financial Services is owned by Daimler Chrysler.
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say that you are analyzing the financial records of the business you have been thinking about buying. you discover that, although the firm has excellent current and quick asset ratios by industry standards (current assets are higher than current liabilities), its cash is low, and it hasn't paid its bills on time. how would this influence your decision? list five steps you would take, including three questions you would ask the owner.
Treasury bills, money market funds, short-term bonds, and certificates of deposit are all examples of cash equivalents. These assets must not be subject to any limitations that would limit their ability to be liquidated quickly in order to qualify as current assets.
What exactly are Current Assets?All assets possessed by the corporation that can be turned into cash within a year are recorded in the Current Assets account, a line item on the balance sheet under the Assets heading. Cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets are examples of current assets. Current Accounts is another name for current assets.A balance sheet account called "Current Assets" displays the worth of a company's assets that can be liquidated, used, or sold to generate cash within a year.Current assets are liquid assets such as cash, cash equivalents, accounts receivable, stock inventory, marketable securities, and pre-paid liabilities.The Current Assets account is significant since it shows a company's ability to meet its immediate financial obligations and short-term liquidity.To learn more about Current Assets, refer to:
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Connor Industries Inc. Constantly scans the environment to keep ahead of competition and to survive as a business. The owners seek statistics that provide valuable information about the future of the economy for periods ranging from three to twelve months. Knowing the _____ is of great benefit to Connor
The owners seek statistics that provide valuable information periods ranging from three to twelve months. Knowing the leading economic indicators is of great benefit to Connor.
What exactly do you mean by economic?Economics is the study of constraint and how it affects how resources are used, how goods and services are made, how welfare production grows over time, and a lot of other complicated issues that are very important to society.
We study economics for a reason.By studying law, people can better understand their world. It gives users the ability to know individuals, groups, markets, and governments in order to effectively adapt to changes and the opportunities they present.
Economic indicators:A statistic about an economic activity is an economic indicator. Analyzing and predicting future economic performance are made possible by economic indicators. The investigation of business cycles is one application of economic indicators.
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younger workers and older workers are motivated to own and operate their own businesses for different reasons. what are these reasons?
Younger workers may be motivated to own and operate their own businesses because it gives them a chance to be their own boss and have more control over their career path. They may also be attracted to the idea of having the potential to make more money than they would in a traditional job.
Older workers may be motivated to own and operate their own businesses because it gives them the opportunity to use their experience and knowledge to create something that can be passed down to future generations. They may also want to take advantage of their retirement savings and investments to fund the business. Additionally, older workers may be looking for a way to remain professionally active after retirement.
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a tractor that 4 years ago cost $8000, now is worth only $3200. find the average annual rate of depreciation
According to question the average annual rate of depreciation for the tractor is $600 per year.
What is average annual rate of depreciation ?The pace at which an asset is depreciating over time is gauged by looking at its average yearly rate of depreciation. It is computed by subtracting the asset's original cost from its market value, then multiplying that result by the number of years the item has been in operation.
Usually, a percentage or decimal is used to describe the average yearly rate of depreciation. It is used to evaluate the tax benefits that can be claimed through depreciation as well as to predict the asset's future value. It is a crucial idea in accounting and finance since it aids in the planning and management of expenditures related to asset ownership for both businesses and individuals.
The average annual rate of depreciation can be found by using the following formula:
(Cost at time of purchase - Current value) / Number of years = Average annual rate of depreciation
($8000 - $3200) / 4 = $2400 / 4 = $600
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janet is invited to a theme party on campus, where everyone is supposed to dress as their favorite video game character. she wears her normal attire -- jeans and a lightweight jacket --, and as a result, not many people associate with her during the party. the host implies that janet should leave but doesn't demand it. janet is experiencing:
Here Janet is experiencing social exclusion during the theme party.
Janet is experiencing feelings of exclusion and alienation. She may be feeling embarrassed, judged, or uncomfortable in her outfit compared to the other guests. She may also be feeling hurt, angry, or frustrated that the host implied that she should leave the party without directly asking her to. Social exclusion is the process by which persons are barred from (or denied full access to) numerous rights, opportunities, and resources that are ordinarily available to members of another group and are essential to social integration and human rights observance within that group. Social exclusion refers to a scenario in which not everyone has equal access to the opportunities and services that enable them to live a decent and happy life. This includes the inability to contribute to and have their opinion heard on the norms of the society in which they live.
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bill, the manager of just right gelato, acts with integrity and honesty because he believes in a system of rules that governs the ordering of values. the system of rules that directs bill's behavior is known as .
Bill, the manager of just right gelato, is honest and trustworthy because he adheres to a set of guidelines that dictate how values should be arranged. Ethics is the code of conduct that guides Bill's actions.
What is the ethical code of conduct?An organization's ethical guidelines and best practices for honesty, integrity, and professionalism are outlined in a code of ethics. Violations of an organization's code of ethics can result in sanctions such as termination for members.
What is an ethical code?Codes of conduct and ethical principles: A) Are formal declarations of an organization's expectations for its workforce. B) Only become necessary when a business is in legal trouble. C) Are intended for high-level managers and executives rather than regular employees.
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if brambles expects to receive a foreign currency payment in six months, how this transaction may be hedged ?
Brambles could hedge the foreign currency payment by entering into a forward contract, which will allow them to lock in the exchange rate at the time of purchase. Alternatively, they could purchase a currency option, which gives them the right but not the obligation to buy the currency at a predetermined exchange rate.
Hedging is a risk management strategy used to protect against potential losses from fluctuating foreign exchange rates. In the case of a foreign currency payment that is expected to be received in six months, a company can use a forward contract to hedge the transaction.
A forward contract is an agreement between two parties to exchange a specific amount of foreign currency at a predetermined exchange rate on a specified date in the future. This type of contract eliminates the risk of exchange rate fluctuations because the buyer and seller agree to the exchange rate at the time of the contract. The buyer can lock in the exchange rate at the current market rate and will be guaranteed a specific amount of foreign currency when the payment is received.
The buyer and seller may also enter into a money market hedge. This involves the purchase or sale of a currency to offset any potential exchange rate losses. This type of hedge is beneficial because it provides more flexibility than a forward contract. The buyer can purchase or sell a currency in the money market to counter any potential decrease in the value of the foreign currency.
Another option for hedging is a currency futures contract. This type of contract is similar to a forward contract, but it is traded on a futures exchange.
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travis is a supervisor in a supermarket. how can he motivate his employees for better performance in non-monetary ways? a. offer promotion to employees with consistent good performance b. extend high bonus rewards c. recognize good work through prompt appreciation d. offer paid short trips with family to experienced employees e. sponsor them to take up higher education courses and programs
Plan numerous meetings. Set modestly difficult objectives. Give staff no feedback. Determine penalties for subpar performance.
How to use numerous?
The term number and the adjective numerous are connected, which is not surprising given that the adjective numerous literally implies "a lot of things." When you can't provide a precise quantity to indicate a plentiful or excessive amount, use numerous. For the all-star game, as an illustration, many fans might attend. Reaction from BizWritingTip: The Oxford Dictionary defines the word "multiple" as "having many parts, elements, or individual components; many and different." So if I had to choose between the two, I would unquestionably choose numerous. I must admit that I have never heard the word "plural" used in reference to persons.
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Answer:
C
Explanation:
All of the other options require money this one is praise
explain how staffing structure, policies, practices, procedures, information systems, budgets and legal reporting requirements can be implemented as an integrated staffing management system to help organizations meet their strategic goals
An integrated staffing management system can be implemented by aligning structure, policies, procedures, information systems, budgets, and legal reporting requirements with an organization's strategic goals.
An integrated staffing management system can help organizations meet their strategic goals by ensuring that the workforce is aligned with the organization's mission, vision, and values. This can be achieved by developing staffing policies and practices that support the organization's goals and objectives, such as recruiting and retaining a diverse workforce, providing training and development opportunities, and implementing performance management systems.
Additionally, information systems can be used to track and analyze workforce data, such as employee turnover and absenteeism, to identify trends and areas for improvement. Budgets and legal reporting requirements can also be integrated into the system to ensure compliance with labor laws and regulations and to manage the organization's financial resources effectively.
Overall, an integrated staffing management system can help organizations optimize their workforce and achieve their strategic goals by aligning all aspects of staffing management with the organization's mission and objectives.
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before the foreclosure sale, a defaulting borrower seeks to pay off the debt plus any accrued interest and costs under the right of
Statutory redemption is the right to pay off the mortgage debt plus any accumulated interest and charges.
What exactly is statutory redemption?Borrowers have a statutory right to redeem their homes after a foreclosure, but only up to a certain point. To reclaim a house, a borrower with a legal right to redemption must pay the foreclosure selling price. It is possible to reclaim your home after it has been sold in a foreclosure sale during the redemption period. The outstanding mortgage obligation, as well as any foreclosure-related charges, must be paid. The term redemption refers to the act of releasing or reclaiming mortgaged property by repaying mortgage obligation.
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What is the central idea of business process design?
Business process design's core tenet is that businesses should design new or alternative systems and processes rather than enhancing already effective systems.
What does design mean?A design is an outline or description for the development of a new system, item, activity, or process, along with the output of that design or extremely detailed of a prototypes, finished good, or methodology. The action of creating a design is indicated by the verb design.
A concept in art is what?a blueprint, outline, or sketch of the layout and composition of a works of art, a building, or a machine that is to be produced or operated.
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a company bills customers for services rendered on account. which of the following is one part of recording this transaction? select one: a. credit cash b. debit service revenue c. credit unearned revenue d. debit accounts receivable
Customers are billed by a business for services provided on account. The part of the journal entry that reads "D" stands for "debit accounts receivable."
You make a journal entry in the accounting journal when you send an invoice to a client. You can record the whole amount owed from the invoice as a debit in the accounts receivable account for the journal entry. Additionally, you record a credit in the sales account for the total amount owed from the invoice.
A journal is a book where all of a business's transactions are initially documented. Journalising is the process of entering transactions into a journal. Each transaction has two effects on the accounts: one debit and one credit.
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Suppose a company takes a long position in 20 December oil futures contracts on June 8 when the futures price is $58. It closes out its position on November 10. The spot price and futures price at this time are $65 and $62. The company is hedging 20,000 barrels, and uses a hedge ratio of 0. 8. Each contract is for 1,000 bbl. Q1: How many futures contracts should the firm hedge
The firm should help diversify 20,000/1,000 = 20 futures contracts because each contract is for 1,000 barrels and the company is trying to hedge 20,000 barrels.
What is the short definition of a company?A company structure that is distinct from its owners legally is a company. Due to additional reporting and higher-level legal obligations, the business structure is more complex and has higher setup and administrative costs.
What makes it a company, and why?A company is what is used to describe a business because its employees want to add value. The word "produce," that either means to direct forth or bring forward, has its roots in Latin. The word "corporation" first appeared in Old French, which is a synonym for "compaignie" or "companionship." The word "business" also has Old English roots, where busy and -ness were combined.
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the right to be informed and the right to choose, as both pertain to the exchange process in marketing, are part of
The right to choose and right to be informed, as both pertain to the exchange method in marketing, are part of the Consumer Bill of Rights.
The Consumer Bill of Rights is a set of principles that outline the rights of consumers in their interactions with businesses and organizations. The exact list of rights can vary depending on the jurisdiction, but they typically include the following rights: the right to safety; the right to be informed; the right to choose; the right to be heard; the right to redress; the right to consumer education; the right to be educated about their rights and responsibilities as consumers.
The Consumer Bill of Rights is intended to protect the interests of consumers and ensure that they are treated fairly and honestly in the marketplace. Governments, non-profit organizations and consumer advocacy groups often promote and protect the Consumer Bill of Rights in order to ensure that businesses meet their obligations to consumers.
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doug invested $8,500 two years ago. the stock market has since tanked, and his investment is now worth only $5,476. what rate of return has he earned on his investment?
The rate of return that he has earned on his investment is -19.7%.
Rate of return = 5,476 = 8500×(1+r÷100)²
=-19.7%
What is Return on investment?
Return on investment is a rough indicator of how profitable an investment is. ROI is determined by deducting the investment's original cost from its end value, dividing the result by the investment's cost, and then multiplying the result by 100. ROI has several applications. It can be used to gauge the profitability of stock shares, make a decision on whether to buy a company, or assess how well a real estate deal went. ROI has the drawback of not taking the duration of an investment into consideration.
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