Answer:
A. If money is worth 10% compounded annually, $1,100 due one year from today is equivalent to $1,000 today
Explanation:
this point is easily calculated, the key is to see the word compounded anually, so here is asked to calculate a present value:
so PV =1.000
the others oprions are not true because of:
B. accumulating interest is not discounting, because accumulating refers to receive/pay interest in the future, discounting is the process in which interest is paid today
C. this is also not true, and it not make sense at all a discount rate doesn´t implies a higher present value, it is because it uses the contrary formulas of accumulating.
D. this is not true is the opposite, it means that closer to due date the present value increases beacause it gets closer to what you have to pay.
I believe the correct answer is B
Answer:
A convertible Bond is a fixed-income corporate debt security that yield interest payments but also can be converted into a predetermined number of common stock or equity shares
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Answer:
Cost of goods sold is subtracted from net sales.
Explanation:
A company makes gross profits after deducting the cost of producing the goods and the cost of selling them from the net sales. In other words, gross profit is income that has not been subjected to fixed costs and taxes.
In calculating gross profit, you take the net sales and subtract the cost of goods sold.
The net sale is the total revenue after adjusting for sales return, allowances, and discounts. i.e., revenue (sales) minus discounts allowed, minus sales allowances, and minus return inwards.
The cost of goods sold is the expenses a business incur in producing its products. In calculating the cost of goods sold, take opening stock, add net purchases, and minus closing stock.
Net purchase is purchase minus discounts received, minus purchases allowances, minus purchases returns
Gross profit is a measure of a company's efficiency in the use of its suppliers and labor in its production process.