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3 years ago

8

Using the tables above, what would be the present value of $15,000 to be received at the end of each of the next 2 years, assumi

ng an earnings rate of 6%?
a. $27,495

b. $25,350

c. $26,040

d. $30,000

1 answer:

LUCKY_DIMON [66]3 years ago

7 0

The answer to this question is: D. 30,000

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The shape of your utility function implies that you are a individual, and, therefore, you accept the wager because the differenc

Blababa [14]

Answer:

The first and third statements are correct. These statements are:

The utility function of a risk-averse person exhibits the law of diminishing marginal utility.

The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar.

Explanation:

A risk-averse individual is the one who tends to avoid taking risks. In other words, such an individual prefers lower returns with known risks as opposed to higher returns with unknown risks.

The utility curve for a risk-averse individual is concave in shape. This implies diminishing marginal utility, that is, the satisfaction derived from each additional dollar gained is less than that derived from the previous dollar. Therefore, the first and third statements are both correct.

The second statement is false because risk-averse individuals do not over-estimate the probability of losing money. The fourth statement is also false because risk-averse individuals receive less satisfaction from each additional dollar, not more.

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3 years ago

At the beginning of July, CD City has a balance in inventory of $2,850. The following transactions occur during the month of Jul

myrzilka [38]

Answer:

Inventory 1750 debit

Accounts Payable 1,750 credit

--to record purchase--

Inventory 120 debit

Cash 120 credit

--to record payment of freights--

Accounts Payable 400 debit

Inventory 400 credit

--to record returned goods--

Accounts Payable 1350 debit

Inventory 27 credit

Cash 1323 credit

--to record payment within discount--

Accounts Receivables 4700 debit

Sales Revenues 4700 credit

--to record sale--

COGS 2450 debit

Inventory 2450 credit

--to record COGS of the previous sale--

Cash 4700 debit

Accounts Receivables 4700 credit

--to record collection in full amount--

Inventory 2550 debit

Accounts Payable 2550 credit

--to record purchase--

Accounts Receivables 3650 debit

Sales Revenues 3650 credit

--to record sale--

COGS 1950 debit

Inventory 1950 credit

--to record COGS of the previous sale--

Accounts Payable 190 debit

Inventory 190 credit

--to record returned goods--

Accounts Payable 2360 debit

Inventory 47.2 credit

Cash 2312.8 credit

--to record payment within discount--

Explanation:

We reocrd each entry assuming the basic accounting principles

debit = credit

<u>first purchase balance:</u>

1,750 less 400 return = 1,350

discount 1,350 x 2% = 27

cash outlay 1,350 - 27 = 1,323

<u>second purchase balance:</u>

2,550 less 190= 2,360 balance

discount 2,360 x 2% discount = 47.20

cash outlay 2,360 - 47.20 = 2312.8

4 0

3 years ago

The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is not expected to for the next

malfutka [58]

Answer:

a) $94.88

b) in 1 year, the intrinsic price of the stocks should increase to $109.11

Explanation:

year dividend EPS

0 0 $10

1 0 $12

2 0 $14.40

3 0 $17.28

4 0 $20.736

5 0 $24.8832

6 $11.45 $28.61568

growth rate up to year 5 = 20%

ROE growth rate starting year 6 = 15%

dividend growth rate starting year 6 = 15% x (1 - 40%) = 9%

cost of equity = 15%

horizon value at year 5 = $11.45 / (15% - 9%) = $190.83

current intrinsic value per stock = $190.83 / 1.15⁵ = $94.88

intrinsic price in 1 year = $190.83 / 1.15⁴ = $109.11

8 0

3 years ago

The purchase of which of the following gives the buyer part ownership of a company?

spayn [35]

$\qquad\qquad\huge\underline{{\sf Answer}}♨$

The Correct option is Stocks !

Stocks are part of net worth of a company, and person who owns stocks of a particular company gains part ownership of that company.

8 0

2 years ago

Read 2 more answers

A sample of 15 consumers provided the following product ratings for three different products. Five consumers were randomly assig

tia_tia [17]

The value of the test statistic is equal to 9.98.
There's sufficient statistical evidence at a 5% level of significance to state that there's a significant difference among the ratings for the products A, B, and C.

<h3>What is Kruskal-Wallis test?</h3>

The Kruskal-Wallis test is also referred to as one-way ANOVA on ranks or Kruskal-Wallis H test and it can be defined as a rank-based nonparametric test that is typically used to determine whether or not there are statistically significant differences between two (2) or more samples of an independent variable on either a continuous or ordinal dependent variable.

This ultimately implies that, a Kruskal-Wallis test can be used to determine whether two (2) or more samples originate from the same distribution.

Based on the given sample, the hypothesis is given by:

H₀: Ratings are the same for all the three products.

Ha: There are differences among the ratings for the products.

For this exercise, we would use R-studio to perform the Kruskal-Wallis test as follows:

df₁ = read.table (header = TRUE, text ="

product Ratings

A 55

A 64

A 79

A 41

A 69

B 85

B 99

B 91

B 88

B 95

C 65

C 49

C 35

C 51

C 58

")

DF₁ kruskal.test(Ratings ~ product, data = df1)

Based on the Kruskal-Wallis test, we obtained the following results (outputs):

Kruskal-Wallis chi-squared = 9.98.

Degrees of freedom, DF = 2.

P-value = 0.006806.

Next, we would determine the test statistic as follows:

Test statistic = Kruskal-Wallis chi-squared = 9.98.

P-value = 0.007.

Therefore, the p-value (0.007) is less than α = 0.05. Based on this, we should reject the null hypothesis (H₀) and accept the alternate hypothesis (Ha).

In conclusion, we can infer and logically deduce that there's sufficient statistical evidence at a 5% level of significance to state that there's a significant difference among the ratings for the products A, B, and C.

Read more on null hypothesis here: brainly.com/question/14913351

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7 0

1 year ago