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Vera_Pavlovna [14]
3 years ago
13

What is a series of future receipts or payments discounted to their value now assuming compound interest called?

Business
1 answer:
STatiana [176]3 years ago
8 0
In order to help the student expand his/her knowledge I will help answer the question. This in hope that the student will get a piece of knowledge that will help him/her through his/her homework or future tests.

Present Value of Annuity is a series of future receipts or payments discounted to their value now assuming compound interest.

I hope it helps, Regards.       <span> </span>
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Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. S
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Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

= $42

6 0
3 years ago
Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiat
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Ngai Nhung is the sales manager at Hung Technologies. At lunch with the company CEO, Ngai proudly announced that he had negotiated a <u>blanket purchase order</u> with a client that represented the customer's long-term commitment to buy components from Hung.

<u>Option: D</u>

<u>Explanation:</u>

Here Ngai announcement means that the firm's consumers with their suppliers are going to enable several distribution dates across a period of time, often structured to reap the benefits of fixed prices which showcase the long-term relation between firm and consumer, thus understood as a blanket purchase order.

It is basically utilized when expendable products are recurrently needed. Blanket orders are commonly used when a consumer purchases large amounts and receives special discounts. Calculating the predicted amount planned by the recipient of the commodity is the toughest part of getting an agreement.

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3 years ago
John Hernandez is 24 years old and has saved enough money to fund an adequate emergency fund. In addition, he has saved $5,600 t
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Answer:

C. Growth

Explanation:

Starting investment early is something that is always encouraged and that is the case of John Hernadez here. By starting early, before he retires, he'd have been able to grow is investment portfolio substantially and even be a millionaire by the time of his retirement. Growth is the most important factor for John, that's why is he's starting his investment early. With the time given for growth, investment value may increase in value and it allows time for appreciation of stock price.

4 0
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The only expenses that can be reduced in order to produce more savings are ""Non-essential Expenses"" and ""Essential (Variable)
Y_Kistochka [10]

Answer:

The statement is false

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Non- essential expense is the expense which is spent on the extra things, which means it is not essential to meet the needs. Whereas the essential expense are those expenses which are spend on consuming the things required for living. For example food, cloth.

So, both the expenses are those expense which are necessary for an individual or person and therefore, cannot be reduced in order to produce the more savings.

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3 years ago
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This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium number
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Please attach the graph if you can. Otherwise, I cannot answer this question
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