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
liberstina [14]
3 years ago
14

ack Hammer invests in a stock that will pay dividends of $3.06 at the end of the first year; $3.42 at the end of the second year

; and $3.78 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $56. What is the present value of all future benefits if a discount rate of 13 percent is applied
Business
1 answer:
aleksley [76]3 years ago
8 0

Answer:

$46.82

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 = $3.06

Cash flow in year 2 = $3.42

Cash flow in year 3 = $3.78  + $56 = $59.78

I = 13%

Present value = $46.82

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

You might be interested in
question 5 you're anticipating audience questions, especially one asking how you were able to connect the campaign with the resu
notka56 [123]

The detail you need to add to your next slide should address the issue of questions from the audience.

<h3>What is a Presentation?</h3>

This refers to the use of diagrams, charts, and tables to present an idea to an audience.

Hence, we can see that The detail you need to add to your next slide should address the issue of questions from the audience.

This is because you are being proactive by adding a slide of potential questions from the audience.

Read more about presentations here:

brainly.com/question/24653274

#SPJ1

4 0
1 year ago
Which of the following factors has the greatest impact in calculating FICO scores? Select one of the options below as your answe
SSSSS [86.1K]
The right answer for the question that is being asked and shown above is that: "c. length of credit history."  the factor that has the greatest impact in calculating FICO scores is that c. length of credit history<span>
</span>
4 0
3 years ago
Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $5 1
den301095 [7]

Answer:

Cost of merchandise sold = $ 28

Gross profit = $ 13

The ending inventory under the LIFO method = $ 18

Explanation:

Given:

October 5,

Purchased units =  1

Unit cost = $5

on October  12,

Purchased units = 1

Unit cost = $ 13

On October 28,

Purchased unit = 1

Unit cost = $ 15

Total cost of the 3 units purchased = $33

Now, the unit sold on October 31 will be the unit purchased in the end i.e on October 28

thus,

Cost of merchandise sold = $ 28

Gross profit = Selling price of the unit - Unit price of purchase

or

Gross profit = $ 28 - $ 15 = $ 13

now, the ending inventory under the LIFO method = $ 5 + $ 13 = $ 18

4 0
3 years ago
Read 2 more answers
When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional informa
atroni [7]

Answer:

$227,500

Explanation:

The computation of the total amount of cash paid is shown below:

Cash paid for insurance premium = Prepaid Insurance at end of the year  + Prepaid Insurance recognized - Prepaid Insurance at the beginning of the year

= $61,250 + $218,750 - $52,500

= $227,500

We simply applied the above formula so that the correct amount of cash paid could come with respect to the insurance premium

5 0
3 years ago
What differences and similarities exist between monopolistic competitive firms and perfect competitive firms?
astraxan [27]

Answer:

In perfect competition, the product offered is standardized whereas in monopolistic competition product differentiation is there. In monopolistic competition, every firm offers products at its own price. ... Entry and Exit are comparatively easy in perfect competition than in monopolistic competition.

Explanation:

(hope this helps)

4 0
3 years ago
Other questions:
  • You have a chance to buy an annuity that pays $550 at the beginning of each year for 3 years. You could earn 5.5% on your money
    8·1 answer
  • What is budget variance?
    8·1 answer
  • In addition to an overall intelligence score, the wais provides separate scores for such skills as
    11·1 answer
  • An annuity will pay $1000 per year for 10 years, starting five years after today. What is the present value (PV) of this annuity
    12·1 answer
  • Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The co
    7·1 answer
  • Which of the following actions is least likely to help prevent and detect schemes involving fraudulent invoices from non-accompl
    11·2 answers
  • S.I.D. Asset Management initiated an open-end and a closed-end mutual fund a few years ago. If you want to invest in the funds t
    8·1 answer
  • Robert Klassen​ Manufacturing, a medical equipment​manufacturer, subjected 90 heart pacemakers to 5,000 hours of testing. Halfwa
    14·1 answer
  • Vijay Inc. purchased a three-acre tract of land for a building site for $310,000. On the land was a building with an appraised v
    11·1 answer
  • Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!