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
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.

You might be interested in
Many foragers like to get the "best bang for their buck", by focusing on resources (such as plant foods) that are easier to acqu
Sonbull [250]
Kool Aid
Its True
124567890
6 0
3 years ago
Which legal form of business ownership does the government have the most control in?
kirill115 [55]

Answer:

i am not sure for the first one, but for the second its a corporation

Explanation:

there are a lot of regulations connected with corporations and the taxation of these organizations

5 0
3 years ago
Read 2 more answers
Consider the following data on the factor endowments of two countries, A and B: Labor Force (millions of workers) 45 20Capital S
Alexus [3.1K]

Answer:

a. Country A

b. Country B

c. Country A

Explanation:

Given

For Country A

Labor force = 45 million = 45000000

Capital Stock = 15 thousand= 15000

For Country B

Labor Force = 20 million = 20000000

Capital Stock = 10 thousand = 10000

a. Which country is relatively capital abundant

A country is capital abundant if its endowment of capital relative to other factors is large compared to other countries.

We calculate the capital/labor ratio for each country.

For A, Ratio = 45000000÷15000 = 3000

For B, Ratio = 20000000÷10000= 2000

The Ratio of country A is greater than B.

So, A is capital redundant.

b. Which country is relatively labor abundant

A country is labour abundant if its endowment of labour relative to other factors is large compared to other countries.

We calculate the labor/capital ratio for each country

For A, Ratio = 15000÷45000000 = 0.000333

For B, Ratio = 10000÷20000000 = 0.0005

The Ratio of country B js greater than A

So, B is capital redundant.

c. Suppose that good S is capital intensive relative to good T. Which country will have comparative advantage in the production of S?

Heckscher–Ohlin theorem in the two-factor case, it states: "A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good"

So, if product S is capital intensive relative to T then country A will have more advantage in production of product T to aid their exportation.

4 0
3 years ago
Read 2 more answers
All of the following are true regarding the guaranteed insurability rider except
docker41 [41]

Answer:

Option (C)

Explanation:

Guaranteed insurability rider is a person who is responsible to sell extra life insurances to the owners who already have life insurance. They visit the clients and attract them to buy a new one. Similarity, the rider usually charge premiums, but if an owner of life insurance is ill or seriously injured only then no additional premium is charged.

7 0
3 years ago
Garden Corporation uses cost-plus pricing with a 30% mark-up. The company is currently selling 12,000 units at $21.45 per unit.
mel-nik [20]

Answer:

$23.44

Explanation:

The computation of profit charge per unit for earning same annual profit is shown below:

Given that

No of Units Sold =       12,000

Sale Price of each Unit   = $21.45

Variable Cost     = 11.50

So,

Contribution Per Unit is

= Selling price per unit - variable cost per unit

= $21.45 - $11.50

= $9.95

So,

Total Contribution  is

= 12,000 units × $9.95

=  $119,400

And,

Fixed Costs for the year is $60,000

So, the Profit for the year is

= Contribution margin - fixed cost

= $119,400 - $60,000

= $59,400

Now If the demand for the product falls to 10,000 Unit  

So we assume Number of units expected to be sold is10,000

Since Variable cost Per Unit  is 11.50

So, the Total Variable Cost is

= 10,000 units × $11.50

= $115,000

And,

Fixed Cost per annum  $60,000

Expected Profit        $59,400

So, the total amount is

= $115,000 + $60,000 + $59,400

= $234,400

So, the price per unit charged is

= $234,400 ÷ 10,000 units

= $23.44

3 0
3 years ago
Other questions:
  • Identify the correct sentence.
    9·1 answer
  • Samuel's Dad is looking to deposit a sum of money immediately into an account that pays an annual interest rate of 9.00% so that
    12·1 answer
  • For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $360,000 of factory labor cos
    9·2 answers
  • In March of the current year, Marcus began investigating the possibility of opening a specialty clothing store. From March throu
    15·1 answer
  • The advantages of _______ are having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulati
    15·1 answer
  • A good with many close substitutes is likely to have relatively ___________(elastic,inelastic) demand, since consumers can easil
    12·1 answer
  • First, look up a treaty via the Internet or a book, cite your source, and answer the following questions in a report of at least
    9·1 answer
  • Recording transactions and events is known as
    11·1 answer
  • Data for Corporation and its two divisions, Domestic and Foreign, appear below:
    11·1 answer
  • Lymen International is considering a significant expansion to its product line. The sales force is excited about the opportuniti
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!