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olga nikolaevna [1]
3 years ago
9

Which of the following are characteristics of a perpetuity?

Business
1 answer:
QveST [7]3 years ago
7 0

Answer:

B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.

C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.

Explanation:

A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.

There are certain characteristics

Option B

The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.

Option C.

As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.

For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.

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Wha Companies use relationship marketing to build and maintain relationships with their _______________. *
Elena-2011 [213]

Answer:

customers.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

One of the importance associated with good marketing communication (relationship marketing) is that, it improves the image of a business firm. A business firm with a good company reputation or prestige for the sales and production of quality products with an excellent customer relationship can easily introduce new products into the market at a high price without limitations.

Hence, companies use relationship marketing to build and maintain relationships with their customers.

8 0
2 years ago
Services that are available when you open a savings account
WARRIOR [948]
Monthly statements, investment options, and online banking services.
5 0
3 years ago
You have $1,000,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 18 percent and Stock Y w
pogonyaev

Answer:

D. $375,000

Explanation:

Expected return of 13% for $1,000,000 will be $130,000

If we invest $375,000 in Stock X, our expected return based on 18% will be $ 67,500 and the remaining $625,000 will be invested in Stock X, therefore expected return based on 10% will be $ 62,500 and thereby giving the total return of $130,000 which is 13% of $1,000,000 and hence $375,000 will be invested in Stock X

8 0
3 years ago
If Melisha can pay for her vehicle with a 4-year loan or with a lease with the same down payment and same interest rate, why wil
gladu [14]

The answer is;


Since the loan payment incorporates amortization. (Regardless of whether the financing cost is the equivalent on both the advance and the rent, the advance incorporates an additional sum for amortization that would enable Melisha to satisfy the auto after some time and claim it toward the finish of the advance time frame).


Hope it helps!

8 0
3 years ago
Households receive a total income of $5 million. Of this, $3.5 million are wages received for laborservices, $1 million are rent
kumpel [21]

Answer:

profit = 250,000

Explanation:

Factor Income is derived from the sum of the Factor of Production

Labor, Land, Capital and Enterprise

Income = wages + rent + interest + profit

To get profit, which is the retribution for the entrepreneur we post our know values and solve for p.

5,000,000 = 3,500,000 wages + 1,000,000 rent + 250,000 interest + p

5,000,000 - 3,500,000 - 1,000,000 - 250,000 = p

p = 250,000

3 0
4 years ago
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