Answer:
Present Value= $918,787.32
Explanation:
Giving the following information:
You just inherited a trust that will pay you $100,000 per year in perpetuity.
The first payment will not occur for exactly four more years.
Interest rate= 8%
First, we need to determine the value of the perpetual annuity in 4 years. Then, we calculate the value today.
Present value in four years:
PV= Cf/i
Cf= cash flow
PV= 100,000/0.08= $1,250,000
Now, using the following formula, we calculate the value today.
PV= FV/(1+i)^n
PV= 1,250,000/1.08^4
PV= $918,787.32
Answer:
Cumulative preferred
Explanation:
Cumulative preferred stock pays a fixed dividend, receives first priority in dividend payment, and maintains the right to a dividend payment, even if that payment is deferred.
This means that in cumulative preferred stock, If the past dividends was excluded for any reason, they should be paid to the preferred stockholders instead of the common shareholders.
Great Sphinx of Giza. The Great Sphinx of Giza (Arabic: أبو الهول Abū al-Haul, English: The Terrifying One; literally: Father of Dread), commonly referred to as the Sphinx of Giza or just the Sphinx, is a limestone statue of a reclining sphinx, a mythical creature with the body of a lion and the head of a human.
Answer:
- b. Financial scandals and corporate fraud.
- b. By legally requiring companies to certify the truth of their statements to investors.
- d. The cost and difficulties of compliance.
Explanation:
After the U.S. was rocked by the financial scandals and corporate fraud of companies like Enron and WorldCom, the U.S. Congress enacted the Sarbanes-Oxley Act to mitigate the risk of such ever occurring again.
The Act involves making the management personally liable for the accuracy of the statements by legally requiring companies to certify the truth in their statements to their investors.
While this seems easy enough, it requires a lot of information gathering which has left companies paying millions to comply.
Answer:
B. Resource markets provide the materials businesses need.
Explanation:
A resource market is where businesses buy materials they require for the production of other goods. They are markets for inputs of production. Resource market contrast finished goods markets where customers buy consumer goods and services.
Resource markets are where businesses obtain the factor of production. Land, labor, and capital are purchased from the resource markets.
