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Ivenika [448]
3 years ago
14

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i

s: A stock with no maturity is an example of a perpetuity. Quantitative Problem: You own a security that provides an annual dividend of $115 forever. The security’s annual return is 5%. What is the present value of this security? Round your answer to the nearest cent. $
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

The present value of security is $2300

Explanation:

The value or price of the perpetuity today is calculated by dividing the constant cash flow it provides per period by the interest rate or the rate of return (r). Thus the price of this perpetuity according to the formula will be,

Value of perpetuity = Cash flow / r

Value of perpetuity = 115 / 0.05

Value of perpetuity = $2300

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By definition, empirical probability is equal to:
lidiya [134]

By definition, empirical probability is equal to C. Number of successful trials/Total number of trials.

<h3>What is an empirical probability?</h3>

It should be noted that empirical probability simply means a experimental probability that is based on historical data.

In this case, by definition, empirical probability is equal to the number of successful trials divided by the total number of trials.

Learn more about empirical probability on:

brainly.com/question/16972278

#SPJ1

7 0
2 years ago
Santayana Company purchased a machine on January 1, 2011, for $20,000 with an estimated salvage value of $5,000 and an estimated
Aliun [14]

Answer:

$1,125

Explanation:

Given that,

Cost of machine = $20,000

Estimated salvage value = $5,000

Estimated useful life = 8 years

Depreciation refers to the reduction in the value of the fixed assets of a particular company with the passage of time.

Here, we are using the straight line method,

Annual depreciation is as follows:

= (Cost of machine - Salvage value) ÷ Estimated useful years

= ($20,000 - $5,000) ÷ 8

= $1,875

Depreciation amount for the year 2011 = $1,875

Depreciation amount for the year 2012 = $1,875

Therefore, the book value of the machine at the beginning of January 1, 2013 is as follows:

= Cost of machine - Depreciation amount for the year 2011 - Depreciation amount for the year 2012

= $20,000 - $1,875 - $1,875

= $16,250

Now, the Santayana decides the machine will last 12 years from the date of purchase and we have already deduct the depreciation for the 2 years. So, we need to consider only 10 years for calculating the new annual depreciation.

Salvage value remains the same.

New annual depreciation:

= (Book value at the beginning of 2013 - Salvage value) ÷ Useful life

= ($16,250 - $5,000) ÷ 10

= $11,250 ÷ 10

= $1,125

8 0
3 years ago
The Presley Corporation is about to go public. It currently has aftertax earnings of $6,500,000, and 3,000,000 shares are owned
m_a_m_a [10]

Answer:A. Net proceed $13,700,000

($20*700,000)-$300,000

B. Earnings per share $2.17

$6500,000/3,000,000 shared

C. Earnings per share $1.76

$6,500,000/3,700,000 shares

8 0
3 years ago
A large-scale bakery is laying out a new production process for its packaged bread, which it sells to several grocery chains. It
Nataliya [291]

Answer:

840 breads size oven.

Explanation:

According to Little's law,

Inventory = flow rate × flow time

Inventory (I) is the number of flow units that are currently handled by a business process.

I= unknown

Flow rate (R) is the number of flow units going through the business process per unit time.

R= 4200 breads per hour or 70 breads per minute (4200/60)

Flow time (T) is the amount of time a flow unit spends in a business process from beginning to end.

T= 12 minutes.

Inventory = flow rate × flow time

Inventory = 70 breads per minute × 12 minutes

Inventory = 840 breads size oven

Therefore, for the company to produce 4200 breads per minute, 840 breads size oven is required.

4 0
3 years ago
Consider ktu as a production system in which the final product is graduate for this
Ludmilka [50]

yes yes very wise :)

7 0
2 years ago
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