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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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a local partnership was in the process of liquidating and reported the following capital account balances: justice, capital (40%
bogdanovich [222]

Based on the capital account balances and the amount in the cash account, the amount that Zobart will receive is $15,467.

<h3>What will Zobart receive?</h3>

The amount that Zobart will receive can be found by the formula:

= (Deficit x percentage in partnership/ 75%) + Capital account balance

Solving for the amount going to Zobart gives:

= (14,000 x 35%/75%) + 22,000

= $15,467

In conclusion, the amount to Zobart is $15,467.

Find out more on capital distributions at brainly.com/question/22693552

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8 0
1 year ago
Which of the following ways of investing/saving is the most liquid?
charle [14.2K]
Savings accounts is the most liquid 
5 0
3 years ago
2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the econo
gladu [14]

Explanation:

I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.

Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.

4 0
3 years ago
regarding open-end and closed-end investment companies, all of the following are true except a) both may be either diversified o
zimovet [89]

The false statement is both offer an unlimited number of shares in a continuous public offering. (option c)

<h3>What are open-end and closed-end investment companies?</h3>

Open-end investment companies are companies that allow investors invest in their company continuously through the purchase of their shares. On the other hand, closed-end investment companies close their company to new investors

An advantage of open-end investment companies is they are highly liquid. A disadvantage of open-end investment companies is the company is vulnerable from large inflows and outflow of investments.

An advantage of closed-end investment companies is they do not incur charges with regards to the redemption activities of investors. A disadvantage of closed-end investment companies is that investors cannot withdraw their funds until maturity.

To learn more about open-end investment companies, please check: brainly.com/question/20350725

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4 0
1 year ago
Bart is a lawyer and an employee of Alway, Inc. Bart is representing Alway in its purchase of Steel Co. Bart learns from Alway's
Vinil7 [7]

Answer:

C. be held liable under the misappropriation theory of insider trading.

Explanation:

Insider trading refers to the practice of utilizing confidential information that is not available for the public in order to make a profit in stock market. Currently, this action is deemed as illegal ever since the  The Insider Trading Sanctions Act was created in  1984 .

The Security and Exchange omission created that act in order to ensure that no investors have to experience unfair situation in the market . Having confidential information will make it really easy for a person to predict whether the price of the stock will go up or down.

This can be seen In Bart's action. Pay attention to this part of the excerpt:

<em>Bart learns from Alway's company files that Steel Co. is in the final stages of negotiation for a highly profitable </em>

6 0
3 years ago
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