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3 years ago

A higher interest rate (discount rate) would:________

Business

1 answer:

DIA [1.3K]3 years ago

4 0

Answer: C) Reduce the price of common stock.

Explanation:

A Rise in interest rates would tend to contradict the economy. Because Everyone cuts back on thier spending because there is less money to spend. This results in earnings falling or dropping, next affected are stock prices. Conversely, when rates drops everyone has more money to spend and earnings tend to rise along with prices.

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WILL MARK BRAINLIST... I'm trying to think of an acronym for BOSS. I've already come up with one. The acronyms have to be extrem

azamat

Answer:

Base Operating Supply System

Explanation:

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3 years ago

You have an investment account that started with $3 comma 000 10 years ago and which now has grown to $6 comma 000. a. What an

zloy xaker [14]

Answer:

The correct answer for option (a) is 7.17% and for option (b) is $48,546.69.

Explanation:

According to the scenario, the given data are as follows:

(a) Present value = $3,000

Future value = $6,000

Time period = 10 years

So, we can calculate the annual rate of return by using following formula:

Rate of return = (( FV ÷ PV)^1/t -1)

= (( $6,000 ÷ $3,000)^1/10 -1)

= (2)^0.1 - 1

= 1.07177346254 - 1

= .07177 or 7.17%

(b) Present value = $12,000

Rate of interest (r) = 15%

Time period = 10 year

So, we can calculate the Future value by using following formula:

FV = PV × ( 1+r)^t

= $12,000 × ( 1 + 15%)^10

= $12,000 × 4.04555773571

= $48,546.69

8 0

3 years ago

LO 2.1Explain how the income statement of a manufacturing company differs from the income statement of a merchandising company.

marshall27 [118]

Answer:

Revenue: The revenue of Manufacturing company comes from the sale of the products that they manufacture. However the merchandising company purchases goods from manufacturing companies and distribute them to make it easier for the customer to access the product and earn a profit on it which increases the cost of the product to end consumer. The contract between the manufacturing and merchandising company can be an agreement of principal and agent. In this case, the revenue for the merchandising company would be commission earned from manufacturing company. This commission paid to merchandising company will be cost to manufacturing company.

Cost of Sale: Now the raw material costs plus depreciation of production machinery plus direct labour plus variable Overhead cost plus if their is any commission paid for sale of finished goods will be the cost of sale for manufacturing company. Whereas in the case of Merchandising company, the cost of sale will be only the cost of goods they sold in the year. The depreciation charge will be minor in merchandising company as they don't have any production machineries.

These the are major difference between manufacturing and merchandising company.

Explanation:

7 0

3 years ago

The following information ($ in millions) comes from a recent annual report of Amazon, Inc.:

tino4ka555 [31]

Answer:

(a) Amazon's balance in cash at the beginning of the year is $1,085 million

(b) Amazon's total liabilities at the end of the year is $3,914 million

(d) Income before income tax for Amazon is $366 million

Explanation:

(a) Beginning cash balance = Ending cash balance - net increase in cash for the year

= $1,104 million - $19 million

= $1,085 million

(b) Total assets = Total liabilities + Total stockholders' equity

$4,417 million = Total liabilities + $503 million

Total liabilities = ($4,417 - $503) million

= $3,914 million

= $10,722 million - $2,458 million

= $8,264 million

(d) Income before income tax = Gross profit - operating expenses - other expenses

= $2,458 million - $2,062 million - $30 million

= $ 366 million

4 0

3 years ago

Each week, radio reaches about what percentage of all adults and teenagers? 94 percent, 91 percent

swat32

If each week radio reaches 94 percent of adults and 91 percent of teenagers, to get the average percentage it gets every week- with adults and teenagers, we have to add the two values and then divide them by two. So 94 + 91 is equal to 185 divided by 2 is 92.5% or 93%.

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3 years ago