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Sedaia [141]
1 year ago
5

Eileen is a risk neutral consultant, doing work for acme, inc. The company offers her a choice of two compensation plans. Under

plan a she receives $25,000 today. Under plan b she receives $10,000 today, $10,000 one year from today, and 10,000 two years from today. She will be indifferent between these plans if her rate of time discount equals ________ percent. If her rate of time discount is less than this amount she will opt for plan ______.
Business
1 answer:
noname [10]1 year ago
8 0

She will be indifferent between these plans if her rate of time discount is equals 21 percent. If her rate of time discount is less than this amount she will opt for a plan B.

<h3>What is discount rate?</h3>

The bank rate, sometimes known as the discount rate in American English, is the interest rate charged by a central bank on its loans and advances to commercial banks.

In a discounted cash flow (DCF) analysis, the discount rate is the interest rate used to calculate the present value of future cash flows. This helps establish whether the future cash flows from a project or investment will be worth more than the initial capital outlay required to support the project or investment.

The discount rate is an essential measure of an economy's credit situation.

To know more about discount rate follow the link:

brainly.com/question/7459025

#SPJ4

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McLeod Inc. is considering an investment that has an expected return of 8% and a standard deviation of 10%. What is the investme
Rudik [331]

Answer:

the investment's coefficient of variation is 1.25.

Explanation:

The  coefficient of variation relates the units of return to the units of risk. It expresses the unit of risk per 1% of return as follows :

<em>Coefficient of Variation = Standard Deviation ÷ Return</em>

Therefore,

Coefficient of Variation = 10 ÷ 8

                                       = 1.25

7 0
3 years ago
Catamount Company had current and accumulated E&amp;P of $500,000 at December 31, 20X3. On December 31, the company made a distr
lapo4ka [179]

Answer:

D. No loss recognized and a reduction in E&P of $200,000

Explanation:

Given that:

  • Current and accumulated E&P : $500,000
  • A distribution of land to its sole shareholder: $200,000
  • E&P basis to Catamount :  $250,000

From that, we can see that the current and accumulated E&P is greater than its distribution of land so no loss would be reported so there will be reduction in earning and profits of the company of $200,000.

Hope it will find you well.

5 0
2 years ago
The banking system in the united states is a dual banking system with both state and ___________ banks.
Viktor [21]
The answer is probably national
6 0
3 years ago
Read 2 more answers
What are the opportunities of an entrepreneur
slavikrds [6]
Definition: the skill and risk taking ability of the person who brings the other resources or factors of production together to produce a good or service e.g. the owner of a business. These people are called entrepreneurs

Opportunities of an entrepreneur:
• involves the sale or lease of any product, service, equipment that will enable the purchaser-licensee to begin a business.
• invest in (multiple) businesses
•quality content
• foreign markets
•crowdfunding
8 0
2 years ago
If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: Multiple Choice pays
REY [17]

Answer:

paid $.25 per share per quarter for the past year

Explanation:

A stock is ownership rights purchased by investors in a public company. Holders of stock are called stockholders and they are regarded as owners of the company.

Stockholders are paid dividends. Dividends are a proportion of a company's profits paid to shareholders.

If the stock's dividend is $1, it means it either paid $1 the past year or paid $.25 per share per quarter for the past year

8 0
2 years ago
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