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
Leaf Lovers Garden Centers is a chain of discount gardening stores throughout the United States. Top management realizes that am
zaharov [31]

Answer:

Decentralised

Explanation:

Leaf lover's garden is an organisation which has given their regional managers the authority to make decisions on the behalf of the company. Any organisation which provides their mid-level and low-level managers the authority to make decisions is known as decentralised organisations. This type of organisational structure is different from the centralised organisation, where most of the decisions are made by top managers and CEOs.

7 0
3 years ago
When the Fed buys bonds from financial institutions, new money moves directly Group of answer choices
Dimas [21]

Answer:

out of the loanable funds market.

Explanation:

In the case when the Fed purchased bonds from a financial institution so the new money shift directly out of the funds market i.e. lonable because the bank reserve would increased also they begins lending at lesser rate of interest

Therefore as per the given situation, the fourth option is correct

And, the same is relevant

8 0
2 years ago
Spielberg Inc. signed a $170,000 noninterest-bearing note due in five years from a production company eager to do business. Comp
GaryK [48]

Answer:

$100,890

Explanation:

To determine the value of the debt we must calculate the present value of the note:

present value = future value of the note / (1 + interest rate)⁵

present value = $170,000 / (1 + 11%)⁵ = $170,000 / 1.11⁵ = $170,000 / 1.685

present value = $100,890

7 0
3 years ago
The relationship between quantity supplied and price is ________ and the relationship between quantity demanded and price is ___
mart [117]

Answer:

direct, inverse

Explanation:

Hope it helps

4 0
2 years ago
Martin Jackson receives an hourly wage rate of $20, with time-and-a-half pay for all hours worked in excess of 40 hours during a
labwork [276]

Answer:Payroll data for the current week are as follows: hours worked, 46; federal income tax withheld, $350; social security tax rate, 6.0%; and Medicare tax rate, 1.5%.

Explanation:

8 0
3 years ago
Other questions:
  • In a sales mix situation at any level of units sold net income will be higher if
    10·1 answer
  • Phyllis invested $10,000, a portion earning a simple interest rate of 8 1 2 % per year and the rest earning a rate of 8% per yea
    9·1 answer
  • Recently passed rules for defining academic progress and graduation rates for ncaa division i teams shift more responsibility fo
    9·1 answer
  • A variable cost
    6·1 answer
  • A monopolistically competitive firm
    8·1 answer
  • In order to obtain a job you may have to go through the typical sequence of interviews, which includes
    14·1 answer
  • When forecasting fixed asset​ requirements, the projected fixed asset balance will
    15·1 answer
  • Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $5
    14·1 answer
  • Computerized accounting systems a. Improve the timeliness of reporting b. Prevent all journalizing errors c. Are only used in me
    14·1 answer
  • at the phase 3 meeting, the project manager will outline the process to . a.) transfer the deliverables into operational state a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!