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3 years ago

Someone with dollar bills to lend will never agree to make a loan with a nominal interest rate of less than zero because:

1 answer:

7 0

<span>Having a nominal interest rate less than 0 would mean that a depositor pays a bank to hold its money. If the annual nominal interest rate is negative 1 percent, a deposit of $1000 dollar would come out $10 dollar short the following year which is why someone with dollar bills will never agree to loan with a nominal interest rate that is negative percent.

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Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1912. It

Fittoniya [83]

Answer:

FV= $159,840.60

Explanation:

Giving the following information:

Initial investment= $1,000

Number of years= 2016 - 1912= 104

Interest rate= 5%

<u>To calculate the value of the investment today, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 1,000*(1.05^104)

FV= $159,840.60

6 0

4 years ago

Capital budgeting is the process of analyzing: Group of answer choices Cash outflows only. Investments with certain outcomes onl

yanalaym [24]

Answer:

Long-term investments.

Explanation:

Capital budgeting can be regarded as process that is been utilized by business in determining the type proposed fixed asset purchases that need to be declined or should be accepted. This process helps in creating quantitative view as regards the proposed fixed asset investment, so that rational basis to make make a judgment can be surfaced. It should be noted that Capital budgeting is the process of analyzing Long-term investments.

6 0

3 years ago

The Department of Labor’s Occupational Outlook Handbook is relatively expensive and not available for use by the general public.

denis23 [38]

Answer: false

Explanation: just got it right

4 0

3 years ago

Wall Drugs offered an incentive stock option plan to its employees. On January 1, 2021, options were granted for 75,000 $1 par c

valkas [14]

Answer:

the total compensation cost is $75,000

Explanation:

The computation of the total compensation cost for this plan is shown below:

Total compensation cost = option granted × fair value of each option

total compensation cost = 75000 × $1

total compensation cost = $75,000

Here to determined the total compensation cost we simply multiplied the option granted with the fair value of each option so that the correct amount could come

Therefore the total compensation cost is $75,000

4 0

3 years ago

Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay divi

frozen [14]

Answer:

Cost of retained earnings = 0.13

Explanation:

given data

(D1) = $1.80

current price = $36

growth rate = 9 percent

solution

we get here Cost of retained earnings (Ke) that is express as

Cost of retained earnings = ( D1 ÷ P ) + g ................1

here P is price and g is growth rate

put here value and we get

Cost of retained earnings = (1.80 ÷ 36 ) + 0.08

Cost of retained earnings = 0.13

4 0

4 years ago