All categories

3 years ago

Which best describes when generally occurs in financial markets

Business

2 answers:

julia-pushkina [17]3 years ago

4 0

Fluctuation Is the best answer

Dafna1 [17]3 years ago

4 0

The correct answer is C: Commodities are traded

You might be interested in

During 2010, Congress debated the advisability of retaining some or all of the tax cuts signed into law by former President Geor

Zolol [24]

Answer and explanation:

The law of Diminishing Marginal Utility states that the more you consume a good or use a service, the less satisfied you will be with each successive use or consumption. It is an important concept in determining consumer preferences. It assumes consumers are rational and will spend money in a way that maximizes contentment with each subsequent unit without negatively affecting their total enjoyment.

6 0

3 years ago

You are considering two mutually exclusive projects with the following cash flows. Which project(s) should you accept if the dis

larisa [96]

Answer:

NPV Project A = - $825.31

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

NPV Project A = - $6804

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

Explanation:

One of the methods to evaluate a project is to determine the NPV or Net Present Value from the project. If a project provides a positive NPV after discounting the cash flows from the project at a set discount rate, the project should be accepted. If the project gives a negative NPV, the project should be discarded.

The NPV is calculated as follows,

NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial cost

Where,

CF1, CF2, ... represents the cash flows in year 1 and year 2 and so on
r is the discount rate

<u>At 8.5% discount rate</u>

NPV Project A = 31000/(1+0.085) + 31000/(1+0.085)^2 + 31000/(1+0.085)^3 - 80000

NPV Project A = - $825.31

NPV Project B = 110000 / (1+0.085)^3 - 80000

NPV Project B = $6119.89

So, at a discount rate of 8.5%, Project B should be accepted.

<u>At 13% discount rate</u>

NPV Project A = 31000/(1+0.13) + 31000/(1+0.13)^2 + 31000/(1+0.13)^3 - 80000

NPV Project A = - $6804

NPV Project B = 110000 / (1+0.13)^3 - 80000

Npv Project B = - $3764.48

So, at a discount rate of 13%, neither of the projects should be accepted.

4 0

3 years ago

For calendar year 2020, Stuart and Pamela Gibson file a joint return reflecting AGI of $357,700. Their itemized deductions are a

sesenic [268]

Answer:

$56,130

Explanation:

Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is

Stuart and Pamela Gibson

Casualty loss $17,430

[$53,200 – (10% × $357,700)]

Home mortgage interest 21,280

State tax 10,000

(18,000 income and 16,300 property

Limited to 10,000)

Charitable Contributions 28,700

Total itemized deductions $56,130

Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130

3 0

3 years ago

Insurance can help you:

Gwar [14]

The answer would be B

7 0

3 years ago

Read 2 more answers

Dixie Mart plans to pay dividends of $1.36, $1.15, $1.35, and $0.40 at the end of the next four years, respectively. After that,

Vera_Pavlovna [14]

Answer:

The correct answer is C. $46.50.

Explanation:

The current value of one share of stock is the present value of all expected future cash flows. The present value (PV) of cash flows in each year is calculated as follows.

PV = Future value / (1 + Rate of return)^Number of years

The future value is the dividend received on the share in a particular year while the rate of return is 11.4% (i.e. 0.114).

Applying the above formula,

$PV_{1} = 1.36 / (1 + 0.114)^{1} = 1.221\\$