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Sindrei [870]
3 years ago
8

You've just joined the investment banking firm of dewey, cheatum, and howe. they've offered you two different salary arrangement

s. you can have $7,400 per month for the next two years, or you can have $6,100 per month for the next two years, along with a $33,000 signing bonus today. assume the interest rate is 6 percent compounded monthly. if you take the first option, $7,400 per month for two years, what is the present value? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) present value $ what is the present value of the second option? (do not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.) present value $
Business
1 answer:
saw5 [17]3 years ago
3 0
<span>If you take the question very literally, you have just joined the organisation and been offered two options. The present value of each is still $0 as you have not yet selected either or received any payment. However, assuming the question is aimed at establishing which option is better over the two year period, the following explanation applies. Salary arrangement 1 is 7,400 monthly for 24 months Assuming the whole salary is invested each month, and the annual interest rate is 6%, and that it is paid at the start of each month then the following formula will apply: Present value = previous value + (previous value * interest rate) + monthly payment Using this formula for a 24 month period results in present value of $188,196.47 Salary arrangement 2 is 33,000 initially and 6,100 monthly for 24 months Using the same assumptions as above, and the same formula for 24 month period results in present value of $191,692.01 The main difference is the initial payment which is accruing interest throughout the period and therefore salary arrangement 2 results in a higher present value.</span>
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Question: Supermarkets often offer a great deal on milk, beef, or eggs to get customers into their stores, knowing many customers will then purchase other items that have higher markups for the store. These supermarkets are using a _______________ pricing tactic.

The answer of the question: The supermarkets are using a leader pricing tactic. 

3 0
3 years ago
If a firm's marginal costs _____ then its _____. Group of answer choices rise; output increases fall; best-response curve shifts
ziro4ka [17]

If a firm's marginal costs <u>fall</u>, then its <u>price falls.</u>

This is based on the principle that if the marginal cost of a product or firm rises, that implies that the firm is operating at a high fixed cost, thereby leading to an increase in the cost of production, which generally equates to products having a high price.

On the other hand, where there is low marginal cost, production costs reduce because the products are being produced at a lower fixed cost. Thereby leading to lower prices.

Hence, in this case, it is concluded that "If a firm's marginal costs <u>fall</u>, then its <u>price falls</u>."

Learn more here: brainly.com/question/10474336

7 0
2 years ago
XYZ has a current market price of $30.00 per share with earnings last year of $2.50 per share, a beta of 1.1 and a dividend of $
Nutka1998 [239]

Answer:

The expected price for the stock is $36

Explanation:

The price earning multiple is a measure that provides the information regarding how much are the investors willing to pay for each $1 of earnings per share. The formula for price earnings multiple is,

P/E = Price per share / Earnings per share

Based on the information, the P/E multiple for XYZ is,

P/E = 30 / 2.5   =  12

Using this price / earnings multiplier, we calculate the price at which the stock will trade as,

12 = Price per share / 3

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Price per share = $36

8 0
3 years ago
Pricing strategy varies significantly across different market structures.
sasho [114]

Answer:

the answer is yes or true

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you can understand it by Pricing strategy is the overarching approach used to set pricing for a company's products and services. It doesn't define actual price points, but the pricing structure is a consequence of the strategy, and it's where you set the price customers see

7 0
3 years ago
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andreyandreev [35.5K]

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1) Reduce the use of water

2) Reusing plastic items

3) Recycle

4) Reduce the use of electricity

5) Planting/gardening

6) voluntarily doing 1 - 5

3 0
3 years ago
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