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elena-14-01-66 [18.8K]
3 years ago
12

Which of the following statements is FALSE? Group of answer choices The right discount rate for a cash flow is the rate of retur

n available in the market on other investments of comparable risk and term. To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries. The equivalent after-tax interest rate is r(1 - τ). The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments.
Business
1 answer:
mart [117]3 years ago
8 0

Answer:

To compensate for the risk that they will receive less than promised if the firm defaults, investors demand a lower interest rate than the rate on U.S. Treasuries.

Explanation:

Investors are risk averse, this means that they will always prefer those investments with lower risks. Since US treasuries are considered the safest investments,  they are used to calculate the risk free rate.

When investors invest in other securities (not US government) they will always demand a higher return because a private entity or even a state or local government can default on a their debt. That difference between the return yielded by a US security and the return from any other investment is called the risk premium.

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Use the adjusted trial balance for Stockton Company to answer the question that follows.
Reil [10]

Answer:

c. $22,058.

Explanation:

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2 years ago
Manuel Rios wishes to determine how long it will take an initial deposit of ​$13 comma 000 to double. a. If Manuel earns 9​% ann
Lorico [155]

Answer:

See Below

Explanation:

This is a problem of compound interest. The formula is:

F=P(1+r)^t

Where

F is the future value

P is the present value

r is the rate of interest

t is the time in years

P = 13,000

To double his money, that means, F = 26,000

a)

Now, r = 9% = 0.09, so time it takes:

F=P(1+r)^t\\26,000=13,000(1+0.09)^t\\2=1.09^{t}\\t=\frac{Ln(2)}{Ln(1.09)}\\t=8.04

So, its gonna take about 8.04 years to double

b)

Similarly, here we just use r = 0.06, so the calculation is:

F=P(1+r)^t\\2=1.06^t\\t=11.9

So, its gonna take about 11.9 years to double

c)

Here, the r is 11% or 0.11

So, the time it will take:

F=P(1+r)^t\\2 = 1.11^t\\t=6.6

So, it is going to take about 6.6 years to double

d)

The amount of time it takes to double his money decreases as the interest rate increases and the time increases as interest rate decreases.

8 0
2 years ago
What's pricing strategy
Sedaia [141]

Answer:

<em>A pricing strategy takes into account segments, ability to pay, market conditions, competitor actions, trade margins and input costs, amongst others. It is targeted at the defined customers and against competitors.</em>

Explanation:

A business can use a variety of pricing strategies when selling a product or service. To determine the most effective pricing strategy for a company, senior executives need to first identify the company's pricing position, pricing segment, pricing capability and their competitive pricing reaction strategy

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3 years ago
Read 2 more answers
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Citrus2011 [14]

The term which describes the shipping who directly supplies from the supplier to the end consumer rather than from the​ seller, saving both time and reshipping​ costs is "Drop Shipping."

<h3>What is drop shipping?</h3>

When a vendor creates a website & sells items that they do not maintain in stock, this practice is known as drop-shipping.

Some key features of drop shipping are-

  • A third party, such as a manufacturer, another store, or a wholesaler, receives an order from the seller and ships the products straight to the customer.
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  • Although drop-shipping is not prohibited, there is a lot of potential for issues and abuse on the part of both customers and sellers.
  • Following an online purchase, the drop-shipping company sends the ordered item directly to the consumer.
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To know more about drop shipping, here

brainly.com/question/13959949

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1 year ago
What is scope of MBBS in Nepal​
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