Answer:
The present value of the contract is 0.5% higher if the rent is paid at the beginning of the month. That is equal to $11.28 for every $100 of rent.
Explanation:
if the rent is paid at the beginning of the month, the present value of the lease contract will be:
PV = monthly rent x PV annuity due factor
we are not given the monthly rent, but we know the PV annuity due factor for 0.5% and 24 periods = 22.67568
if the rent is paid at the end of the month, the PV = monthly rent x PV ordinary annuity factor
the PV ordinary annuity factor, 0.5%, 24 periods = 22.56287
assuming that the rent is $100 (just to calculate a %), the PV of an annuity due = $2,267.57
the PV of an ordinary annuity = $2,256.29
the difference between them = [($2,267.57 / $2,256.29) - 1] x 100 = 0.5%
Answer:
A. $22.61
Explanation:
First,
find the growth rate(g);
g = ROE *retention rate
retention rate = 35%
ROE = Net income/value of equity
ROE = 800,000/5,000,000 = 0.16
Therefore, g = 0.16*0.35
g =0.056 or 5.6%
Price =
D0 = Recently paid dividend
g = growth rate
r = required return
Price =
Therefore, the value of this stock is $22.61
Answer:
opportunity cost
Explanation:
The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.
Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.
Therefore, the right answer is Opportunity cost.
Answer:
3rd stage or Norming stage of group development.
Explanation:
3rd stage or Norming stage of group development.
In this stage responsibilities among group member is divided on the basis of their skills. During this stage members start to cooperate with other co members. A bonding among the members is start to developed which result in understanding each other contribution and identity. The main advantage of this understanding is that conflicts and misunderstanding issues has been resolved at faster rate.
A.) head-on.
rear-ending cars are going the same direction as you, so they don't hit as hard.
trees aren't part of multi-vehicle crashes (hopefully)