Answer:
B. A violation of establishment of responsibility
Explanation:
They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility
Answer:
Annuity will be $33112.644
Explanation:
We have given future value ( FV ) = $4000000
Rate of interest r = 5% = 0.05
Number of periods n = 40
We know that future value is given by
Here A is annuity
So
So annuity will be $33112.644
China is considered to have a Chinese culture
Answer:
3-month real rate: 1.56%
30 years real rate: 4.42%
Explanation:
We will calcualte the future value of the bond and adjust by inflation:
3.months TB:
Principal 100.00
time 1 quarter
rate 0.01085 (4.34% divide into 4 quarter)
Amount 101.09
Adjusted for 2.78 annual inflation
Nominal 101.09
time 1 quarter
Inflation 0.0278/4 = 0,00695
PV 100.39
100.39 / 100 - 1 = 0.39% quarterly rate:
0.39 x 4 = 1.56% real rate.
Because the time is low and difference in rate is lower there is no subtancial difference between the accurate method and the simplier method : nominal - inflation = 4.34 - 2.78 = 1.56
Now we do the same for the 30 years TB
Principal 100.00
time 30.00
rate 0.07330
Amount 834.90
Maturity 834.90
time 30.00
rate 0.0278
PV 366.75
now we calculate the rate:
30√366.75/100 - 1 = 0.04427 = 4.42%
Answer:
$33.44
Explanation:
The computation of the intrinsic value of the share is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.16 + $2.16 × 4.50%
= $2.16 + $0.0972
= $2.2572
The required rate of return is 11.25%
And, the growth rate is 4.50%
So, the intrinsic value is
= ($2.2572) ÷ (11.25% - 4.50)
= $33.44