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emmasim [6.3K]
1 year ago
10

A perpetuity pays $100 each and every year forever. the duration of this perpetuity will be:_________

Business
1 answer:
Scrat [10]1 year ago
7 0

Perpetuity pays $100 each and every year forever. the duration of this perpetuity will be 12.11

Yield rate = 9% or 0.09

Duration of perpetuity = (1+ Interest Rate) / Interest Rate

                                  = 1+ 0.09 / 0.09

                                   = 1.09 / 0.09

                                    = 12.11

A perpetual annuity is a never-ending annuity or series of cash payments that lasts forever. True eternity is rare. For example, the UK government has issued them in the past. These were known as consoles and were all eventually redeemed in 2015. Cash flow is endless.

Learn more about perpetuity here: brainly.com/question/24261067

#SPJ4

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Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?
Pepsi [2]

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0
3 years ago
The charter of Vista West Corporation specifies that it is authorized to issue 209,000 shares of common stock. Since the company
stealth61 [152]

Answer:

209,000 shares

Explanation:

The company is authorized to issue 209,000 shares which represent maximum shares that can be issued. Authorized shares is the maximum number of shares a company can issue and this is stated in the corporate charter.

5 0
2 years ago
Read the following paragraph and respond to the questions below.
-Dominant- [34]

Answer:

a. The number sentence that is the topic sentence is sentence (1).

b. Sentence (6) does not contribute to the paragraph's unity.  It can be eliminated, without changing the meaning that can be obtained from the paragraph.  It does not support the topic.

c. The writer, in sentences 3 through 7, provides an example and further details to help the reader to understand her point.

d. The example in a sentence makes the idea clearer to the reader.  Without the example, which provides further details, the reader may not clearly appreciate the topic under discussion.

Explanation:

The purpose of the topic sentence is to introduce the theme of the paragraph or the point of view of the writer.  It captures the essence of the story.  As it bears the central idea, it focuses the paragraph to achieve unity.

5 0
2 years ago
You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and stock B. If the beta of the stoc
7nadin3 [17]

Answer:

beta of stock B = 1.33

Explanation:

the beta of treasury bills is 0

the beta of stock A = 1.46

the beta of stock B = ?

the portfolio contains equal amounts of each investment and its overall beta is 0.93

0.93 = (0 x 1/3) + (1.46 x 1/3) + (B x 1/3)

0.93 = 0 + 0.4867 + 0.333B

0.93 = 0.4867 + 0.333B

0.4433 = 0.333B

B = 0.4433 / 0.333 = 1.33

4 0
2 years ago
Many people in Rhenasia are spending less as there are only few good-paying jobs in the country. Many businesses in the country
scZoUnD [109]

Answer: Economy of the country.

Explanation:

The environmental characteristics affecting businesses in Rhenasia is the negative economy of the country. The country of Rhenasia is facing a recession in their economy, this has directly led to a drop in sale of businesses across the country.

4 0
3 years ago
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