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2 years ago

In a net-present-value analysis, the discount rate is often called the:______.

Business

1 answer:

VLD [36.1K]2 years ago

7 0

In a net-present-value analysis, the discount rate is often called the hurdle rate.

The discount rate is the interest charge charged to industrial banks and other economic institutions for brief-term loans they take from the Federal Reserve financial institution. the cut price fee refers back to the interest charge used in discounted coins glide (DCF) analysis to decide the prevailing fee of destiny coins flows.

The discount rate is the interest fee used to determine the present value of destiny cash flows in a discounted coins float (DCF) analysis. This enables determining if the future cash flows from a task or investment can be really worth extra than the capital outlay needed to fund the project or investment in the present.

Learn more about discount rate here: brainly.com/question/4701068

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Buffalo Corporation reported net income of $415,720 in 2020 and had 208,000 shares of common stock outstanding throughout the ye

LuckyWell [14K]

Answer:

Buffalo Corporation

Diluted earnings per share is:

$1.67 per share.

Explanation:

a) Data and Calculations:

Reported net income = $415,720

Common Stock outstanding = 208,000 shares

Options outstanding = 40,500 shares

Total outstanding shares = 248,500 shares (208,000 + 40,500)

Option price per share = $11

Market price per share = $15

Earnings per share = Net Income/Common Stock outstanding

Computation of diluted earnings per share:

Diluted Earnings per share = Net Income/Total outstanding shares

= $415,720/248,500

= $1.67

b) Buffalo's diluted earnings per share uses the total outstanding shares (common stock plus options stock plus all convertible securities) to divide into the net income. As the description implies, all convertible stocks are included in the calculation to arrive at the earnings per share.

4 0

3 years ago

Baker traded a building used in her business for some new land. Baker originally purchased the building for $50,000 and it had a

Fittoniya [83]

Answer:

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

Explanation:

Step 1: Determine the initial loss/gain in value of the building

initial loss/gain=original purchase price-adjusted basis

where;

original purchase price=$50,000

adjusted basis=$30,000

replacing;

initial loss/gain=50,000-30,000=$20,000

initial loss in value=-$20,000

Step 2: Determine the loss or gain from the exchange

loss/gain=35,000-30,000=$15,000

gain=$15,000

Step 3: Determine other additional costs

Costs=loss=-$5,000

Step 4: Determine the net gain/loss

net gain/loss=-20,000+(15,000)+(-5,000)=-$10,000

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

8 0

4 years ago

Why do you think an entrepreneur might choose to keep a business small rather than expand it?

SpyIntel [72]

Answer:

Growing a business is very difficult

Explanation:

There are a lot of factors that influence business growth, a large one is the amount of time and money an owner can devote to it. Growing a business is hard - an owner may need to hire more people, find more space, buy more inventory, market to more customers, and all these activities take time and money. A lot of small business are successful because they operate in a niche, e.g. a restaurant located across the street from a factory will get customers before and after the shifts, but if the owner opened a second location in a strip mall with other restaurants nearby they need to find an entirley different customer base that already is being served. Some small businesses, e.g. candle maker at a farmers market, started as hobbies for the owner that turned into a business, but the owner can't afford to quit their day job and make candles full time. Growning a business in some ways is a lot harder than starting one.

4 0

3 years ago

Which of the following is NOT a benefit of a social media presence for a brand? Group of answer choices Social media allows comp

ollegr [7]

Answer: Social media allows companies to have a short-term focus.

Explanation:

Social Media has made the world way more connected than it was before even with the advent of the Internet. As such, companies were able to leverage on this to improve their brand and popularity by being present on the various social media platforms.

With social media, companies have been able to marketers to establish a public voice and presence online, cost-effectively reinforce other communication activities, build online forums and communities as well as remain relevant in a fast changing world.

Companies having a short term focus as a result of social media is not a benefit of social media. A company should always think long term and even social media can help them achieve long term growth if long term marketing plans are integrated with social media marketing.

5 0

4 years ago

How do we track stock market performance?

Lynna [10]

Go to the stock market holders, or look it up online

Hope this helps!

3 0

3 years ago

Read 2 more answers