1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mote1985 [20]
3 years ago
15

Which one of the following statements related to annuities and perpetuities is correct? Multiple Choice An ordinary annuity is w

orth more than an annuity due given equal annual cash flows for 10 years at 7 percent interest, compounded annually. A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal. Most loans are a form of a perpetuity. The present value of a perpetuity cannot be computed but the future value can. Perpetuities are finite but annuities are not.
Business
1 answer:
Tatiana [17]3 years ago
6 0

Answer:

A perpetuity comprised of $100 monthly payments is worth more than an annuity of $100 monthly payments provided the discount rates are equal.

Explanation:

There is the basic difference of time duration in the payments. Under perpetuity the payments are for an unlimited period, and under annuity the period is defined.

As the payments are indefinite in perpetuity the amount will be higher in comparison to a limited period payments under annuity, also provided the interest rate is same for both.

Thus, the chosen statement is correct.

You might be interested in
Esquire Comic Book Company had income before tax of $1,700,000 in 2016 before considering the following material items: 1. Esqui
mel-nik [20]

Answer:

Explanation:

Partial income statement

For the Year Ended December 31, 2016

Income from continuing operations $975,000

Discontinued operations gain (loss):  

Income from operations of discontinued component $220,000

Income tax expense ($88,000)

Income on discontinued operations $132,000

Net income $1,107,000

Income from operations of discontinued component (including loss on disposal of $420,000) = $220,000

Income from continuing operations:

Income before considering additional items $1,700,000

Decrease in income due to restructuring costs ($75,000)

Before-tax income from continuing operations $1,625,000

Income tax expense (40%) ($650,000)

Income from continuing operations $975,000

5 0
3 years ago
George's Equipment is planning on merging with Nelson Machinery. George's will pay Nelson's shareholders the current value of th
zalisa [80]

Answer:

31 per share

Explanation:

The computation of value per share is shown below:-

Share exchange ratio = MPS of Nelson ÷ MPS of George

= $38 ÷ $31

= 1.2258

MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER

= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)

= $60,800 + $142,600 ÷ 4600 + 1,961

= $203,400 ÷ 6,561

= 31 per share

Therefore for computing the value per share we simply applied the above formula.

4 0
3 years ago
Select two ways of becoming a business owner. compare the advantages and disadvantages and decide which of the two you would pre
ankoles [38]
1. Start your own business; your independent but usual the business will fail
2. Take over a family-owned business - might not get alone with your family but you would be working with people your comfortable with  
 
i really hope this helps 
8 0
3 years ago
Read 2 more answers
A company is constructing an asset for its own use. Construction began in 2017. The asset is being financed entirely with a spec
Ira Lisetskai [31]

Answer:

option B

Explanation:

On the off chance that an advantage is being built and is being financed totally with a particular new obtaining. Development costs are spread more than two years The aggregate sum of intrigue cost promoted in the subsequent year is dictated by applying the loan cost on the particular new obtaining to the weighted-normal amassed consumption's for the advantage in both of the years.

The correct answer is option B

 weighted-average accumulated expenditures for the asset in 2017 and 2018.

3 0
3 years ago
Read 2 more answers
Banks can create an unlimited amount of money. True or false, and why?
Eduardwww [97]
Could be true. Banks use the stored money to invest, and if they make the right investments, theoretically they can have excess in money, investing more with the excess, and this keeps happening.
4 0
3 years ago
Other questions:
  • Roseler Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead i
    12·1 answer
  • In emerging industries _________. a. product-differentiation efforts are focused on product refinement as a basis of product dif
    14·1 answer
  • Ginny Paulson was just promoted to marketing manager for her company. She also gets a big raise with the promotion. Because Ginn
    5·1 answer
  • Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Co
    12·1 answer
  • Help me with the question​
    7·1 answer
  • Which of the following LEAST affects the location of an industry
    13·1 answer
  • 'Structural unemployment arises from longer term changes in
    9·1 answer
  • It is important to gather as many accounting metrics as possible because they have intrinsic value and do not need a context in
    9·1 answer
  • Record the information you found for steps 2 and 3 here. Make sure you discuss how the company got money to start the business,
    15·1 answer
  • A stock currently sells for $49. the dividend yield is 3.8 percent and the dividend growth rate is 5.1 percent. what is the amou
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!