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Digiron [165]
3 years ago
11

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y

ears. Toni​ Flanders, the​ company's CEO, is scrambling to discount the liability to the present to assist in valuing the​ firm's stock. If the appropriate discount rate is 7 ​percent, what is the present value of the​ liability?
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer:

Present value of Liability is $59,989

Explanation:

Money does not have the same value in future as it has today. The present value calculates the today's value of any that cash flow will be made in future.

Liability = FV = $398,930

Number of years = n = 28 years

Discount rate = r = 7%

Present value = FV / ( 1 + r )^n

Present value = $398,930 / ( 1 + 0.07 )^28

Present value = $398,930 / 6.65

Present value = $59,989.47

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One of the three economic questions deals with deciding what goods and services should be produced. what the costs of production
abruzzese [7]

Answer:

The correct answer is What Goods and Services should be produced.

Explanation:

The problem ‘what to produce’ can be divided into two related questions. First, which goods are to be produced and which not; and second, in what quantities those goods, which the economy has decided to produce, are to be produced. If productive resources were unlimited we could produce as many numbers of goods as we liked and, therefore, the question “What goods to be produced and what not” would not have arisen. But because resources are in fact scarce relative to human wants, an economy must choose among different alternative collections of goods and services that it should produce.

If the Society decides to produce particular goods in a larger quantity, it will have to withdraw resources from the production of some other goods. Further, an economy has to decide how much resources should be allocated for the production of consumer goods and how much for capital goods. In other words, an economy has to decide the respective quantities of consumer goods and capital goods to be produced.

The choice between consumer goods and capital goods involves the choice between the present and the future. If the society decides to produce more capital goods, some resources will have to be taken away from the production of consumer goods and. therefore, the production of consumer goods would have to be cut down. But greater amount of capital goods would make possible the production of larger quantities of consumer goods in the future. Thus, we see that some current consumption has to be sacrificed for the sake of more consumption in the future.

6 0
3 years ago
Costs incurred regardless of the number of units of a product that are produced or sold are called:
Tema [17]

<span>C. Fixed Costs. Fixed costs are incurred regardless of the number of units of a product are produced or sold on a given period. Fixed costs are expenses incurred and remain unchanged within a relevant period. These costs are fixed in relation to the quantity of production for a certain period.</span>

4 0
3 years ago
Read 2 more answers
Question 1 of 20
qaws [65]

Answer:

Historically, an initial public offering, or IPO, has referred to the first time a company

Explanation:

3 0
2 years ago
Read 2 more answers
Stock A has an expected return of 10% and a standard deviation of 20%. Stock B has an expected return of 13% and a standard devi
Nina [5.8K]

Answer:

Expected Portfolio return = 0.5(10)+0.5(13)= 5+6.5=11.5%

Expected Portfolio SD= 0.5(20)+0.5(30)= 25%

Beta of A, 10= 5+B(6)

5=6B

B= 5/6= 0.833

B of B, 13=5+B(6)

8=6B

B=8/6

B=1.33

b. Portfolio AB's standard deviation is 25%

c. Stock A's beta is 0.8333

These two statements are correct

Explanation:

3 0
3 years ago
Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks tot
Stels [109]

Answer:

The amount of outstanding checks on Harris Company's June bank reconciliation should be $42700.

Explanation:

Outstanding amount of checks issued = Checks outstanding in beginning of June + Checks issued during the month of June - Checks cleared in June

= $15400  + $64900  - $37600

= $42700

Therefore, The amount of outstanding checks on Harris Company's June bank reconciliation should be $42700.

3 0
3 years ago
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