1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hichkok12 [17]
3 years ago
10

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%. Which is true? The investm

ent has a future value of $7,347 The investment has a future value of $8,053 The investment has a present value of $5,000 The investment has a net present value of $5,000 None of the above
Business
1 answer:
irga5000 [103]3 years ago
3 0

Answer:

The correct answer is B: The investment has a future value of $8,053

Explanation:

Giving the following information:

A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.

We need to calculate the final value of the investment. We will use the following formula:

FV= PV*(1+i)^n

FV= 5,000*1.10^5= $8,052.55

You might be interested in
Jan pays $70 each month for her auto insurance policy. This regular payment is called a
PilotLPTM [1.2K]
EVEN I KNOW THIS ONE. A MONTHLY PAYMENTTT
4 0
3 years ago
When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected retur
Bezzdna [24]

Answer:

e. None of the above.

Explanation:

When the stock price follows a random walk the price today is said to be equal to the prior period price plus the expected return for the period with any remaining difference to the actual return due <u>due to new information related to the stock​"</u>. This is because any new information on stock which is unrelated to stock prices will lead to an increase/decrease in the stock price over a period of time.

3 0
3 years ago
A rights offering Question 16 options: a) is the least expensive way to raise capital. b) gives the firm a built-in market for n
zysi [14]

Answer: b. gives the firm a built-in market for new securities.

Explanation:

Rights offering are issued by companies when such companies wants to generate additional capital. This may be necessary when such company wants to meet its financial obligations and therefore need extra capital.

A rights offering gives the firm a built-in market for new securities as the security holder are already aware of the company and just buys additional securities.

7 0
3 years ago
Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownershi
Westkost [7]

Answer:

B. False

Explanation:

As the name suggests that crowdfunding refers to the funding for a project by having a small amount from the public at large in an internet

Since in the question it is mentioned that the founders should put efforts for giving the high stake of ownership with respect to high contributors before raising the funds to launch a product in the market

But this above requirement should not be necessary

Therefore the given statement is false

5 0
3 years ago
Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her
Dovator [93]

Answer:

3 cases

Explanation:

Marginal product refers to change in the total output when an additional input is employed. For example, output is 5 units when 2 laborers are employed. When another unit of input i.e 3rd laborer is employed, the output rises to 9 units. In this case marginal product of the 3rd unit of labor would be 9 - 5 i.e 4 units.

In the given case, before Atul is hired, the production was 4 cases per week. After his being hired, it rose to 7 cases per week. Thus Atul's marginal product in the given case would be 7 - 4 i.e 3 cases.

8 0
3 years ago
Other questions:
  • A building owner is evaluating the following alternatives for leasing space in an office building for the next five years:
    15·1 answer
  • Jim Moore opens a new savings account. He deposits $12,000 at 12% compounded semiannually. At the start of the fourth year, Jim
    13·1 answer
  • Money and farm equipment are examples of
    11·1 answer
  • A forward contract is described by:_______.
    12·1 answer
  • Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $188,000 and appropriately accounted for the inve
    9·1 answer
  • Metlock Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. 1/1 - Beginn
    10·1 answer
  • __________are products that are designed and produced from the start to meet unusual customer needs or requirements. They repres
    15·1 answer
  • If you plan to take money out of the bank frequently, what type of account should you get?
    13·2 answers
  • 11. Regarding employee relations, demoting an employee is an alternative to
    15·1 answer
  • By default, the hyperlink will display the text in the hyperlink itself, such as the web URL.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!