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
Illusion [34]
3 years ago
13

Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss i

s selling securities that call for 4 payments of $50 (1 payment at the end of each of the next 4 years) plus an extra payment of $1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of $900 each. Your money is now invested in a bank that pays an 8% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you? Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (MindTap Course List) (p. 189). Cengage Learning. Kindle Edition.

Business
1 answer:
Firlakuza [10]3 years ago
8 0

Answer:

Decision : It is not good invest as it offers at $925 whereas your bank deposit cost $893.16 for same return.

Explanation:

Detailed calculations are carried out in the attachment below.

You might be interested in
How does specialization affect an economy more efficient?
Setler [38]
The more they focus on a task the more efficient they become at this task, which means that less time and less money is involved in producing a good.
8 0
3 years ago
Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account. Rev
Mkey [24]

Answer:

$35,000

Explanation:

Data provided in the question:

Accounts Receivable at the start of the year = $6,000

Accounts Receivable at the end of the year = $9,000

Revenues for the period = $38,000

Now,

cash collected from the customers

= Beginning balance + Revenue for the year - Ending balance of account receivable

= $6,000 + $38,000 - $9,000

= $35,000

8 0
3 years ago
The consumer price index (CPI) is used to compute inflation.
mestny [16]

ANSWER: The correct answer is True. Consumer price Index computes inflation or market basket of consumers.

Explanation: It measures the price changes in the goods or services basket for consumers which represents the consumption expenditure in the economy. It is calculated on various  categories or  sub- categories like,urban or rural. It measures the inflation rate and scans the percentage change of the  index over a period of time. It measures increase in the price of households basket.

3 0
3 years ago
Read 2 more answers
Ways which business can overcome competition in the market environment​
AnnZ [28]
<h2><em>Ten ways to keep ahead of the competition</em></h2>

<em>Know the competition. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are. ...</em>

<em>Know your customers. ...</em>

<em>Differentiate. ...</em>

<em>Step up your marketing. ...</em>

<em>Update your image. ...</em>

<em>Look after your existing customers. ...</em>

<em>Target new markets. ...</em>

<em>Expand your offer.</em>

3 0
3 years ago
Robin Baker, a top manager at Westinghouse, has recently been put in charge of a new multi-million dollar project. She selects s
natulia [17]

Answer:

The answer is: A) Autocratic

Explanation:

Autocratic leadership style, also known as authoritarian leadership, is characterized by heavy control by the group's leader. The leader makes all the decisions and doesn't value the subordinates' contributions. Autocratic leaders make decisions based on their ideas and personal judgement, not the others'.

7 0
3 years ago
Other questions:
  • Diverse Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement
    9·1 answer
  • Gerry, one of your subordinates, seems to care so much about being liked that he rarely states strong opinions in meetings of yo
    12·1 answer
  • The Lone Cactus Nursery has the following general ledger account balances as of August.
    6·1 answer
  • Nubela Manufacturing is considering two alternative investment proposals with the following​ data: Proposal X Proposal Y Investm
    13·1 answer
  • During periods of economic growth, consumers buy more goods and services. This causes businesses to produce _____ goods and serv
    5·2 answers
  • Which of the following will not result in the termination and liquidation of a partnership? 1) Partners are incompatible and cho
    9·1 answer
  • A nation’s automakers install new robotic machinery to build cars. as a result, cars take only a day to make, and the factories
    15·1 answer
  • Why is a w-2 form so important
    7·1 answer
  • On June 1, 2021, Emmet Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment bu
    11·1 answer
  • Production possibilities curve. the curve of the graph<br><br> is called "The Frontier"
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!