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JulsSmile [24]
3 years ago
10

What is the present value of a perpetual stream of cash flows that pays ​$8 comma 0008,000 at the end of year one and the annual

cash flows grow at a rate of 44​% per year​ indefinitely, if the appropriate discount rate is 1515​%? What if the appropriate discount rate is 1313​%?
Business
1 answer:
andre [41]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Cash flows= $8,000

Grow at a rate of 4​% per year​ indefinitely.

We need to find the present value using the following formula:

Present Value= periodic payment/ (i - g)

i= interest rate

g= growth rate

A) Interest rate= 15%

PV= 8,000/ (0.15 - 0.04)= $72,727.27

B) i= 13%

PV= 8,000/ (0.13 - 0.04)= $88,889

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Assume Argentina has production possibilities to produce either 35 batches of apples or 70 batches of peaches using 100 worker h
konstantin123 [22]

Answer:

40

Explanation:

Batches of apples produced in one hour = 35/100 = 0.35

Batches of peaches produced in one hour = 70/100 = 0.70

total hours it would take to produce 15 batches of apples = 15 / 0.35 = 42.86 =  43 hours

this would leave (100 - 43) 57 hours to make peaches

Batches of peaches that can be made in 43 hours = 57 x 0.7 = 39.9 = 40 batches

7 0
3 years ago
On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6
Slav-nsk [51]

Answer:

23rd May

Dr Cash                                                          960,000

Cr Common stock                                        240,000

Cr Paid-in Capital - Common Stock            720,000

( to record the issuance of 80,000 common shares for cash)

6th July

Dr Cash                           900,000

Cr Preferred stock          900,000

( to record the issuance of 18,000 preferred shares for cash)

15th September

Dr Cash                                                   750,000

Cr Common stock                                  150,000

Cr Paid-in capital - Common Stock       600,000

( to record the issuance of 50,000 common shares for cash)

Explanation:

Working notes for each transactions:

* 23rd May:

Cash increases by: Amount of stocks issued * Price at issuance = 80,000 * 12 = $960,000

Common stock account increases by: Amount of stock issued * Stated value = 80,000 * 3 = 240,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 80,000 * 9 = $720,000

* 6th July:

Cash increases by: Amount of stocks issued * Price at issuance = 18,000 * 50 = $900,000

Preferred stock account increases by: Amount of stock issued * Par value = 18,000 * 50 = $900,000;

As shares are issued at par; no paid-in capital amount recorded.

* 15th September:

Cash increases by: Amount of stocks issued * Price at issuance = 50,000 * 15 = $750,000

Common stock account increases by: Amount of stock issued * Stated value = 50,000 * 3 = 150,000

Paid-in capital account increased by: Amount of stock issued * ( Price at issuance - Stated value) = 50,000 * 12 = $600,000.

3 0
3 years ago
Before setting your prices, it's wise to
Dima020 [189]

"research industry standards" is the answer i believe

4 0
3 years ago
Read 2 more answers
Next week, Mortimer is preparing to go to work for the Illinois department of Child Services. He was surprised when his friends
Fittoniya [83]

Answer:

The implication is that the Illinois Department of Child Services is a unionized workplace.

Mortimer will derive better benefits that surpass the costs of membership.  He is covered in all collective bargains, even when he resigns his union membership.  Unions negotiate for better working conditions, higher pays, and improved benefits.

When Mortimer has any grievance against the department, the union will also represent him, thereby making his life easier since unions can negotiate better with employers than individual workers.

Mortimer is even lucky to find a job at a unionized workplace because the jobs are not usually advertised as union members easily bring in their relatives and friends to occupy such vacancies.

Explanation:

Most of the disadvantages that Mortimer should complain about unions are disadvantages to the employer and not to him as an individual worker.  For the employer, the union acts as a form of monopoly that can decide whether the workers would work or not.  The unionized workers are not easy to replace with other workers.

8 0
3 years ago
Total revenue equals A. change in price per unit times quantity sold. B. price per unit times change in quantity sold. C. price
Dmitriy789 [7]

Answer:

C. price per unit times quantity sold.

Explanation:

Total revenue is defined as the revenues that are received from the sales of units of goods and services. It is price multiplied by quantity sold.

Total revenue can also be seen as price per unit times quantity is sold. For example if the unit price of a good is $2 the price per one unit is $2. When 20 units are sold the price per units sold is 20* $2= $40.

So times that a defined unit of goods is sold multiplied by price gives the total revenue.

7 0
3 years ago
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