If he wants to withdraw $25,000 each year for 30 years after his retirement 10 years from now, he should invest either letter B. $105,470.27 or D $108,490.27. While he was withdrawing $25,000.00 his investment still remains untouched for the 30 years and it is still increasing. He may increase his yearly withdrawal.
Yes , the increasing average payment period decreases the operating cycle
All small business owners know the importance of liquidity-have enough cash on hand to pay the bills. For this reason, business owners and managers monitor the cash conversion cycle. This shows how quickly companies are moving from paying inventory to receiving cash for sold inventory. An important factor in calculating a company's cash conversion cycle is the accounts payable period. The longer the period, the shorter the cycle.
The cash conversion cycle can be calculated using the data readily available on the company's balance sheet and income statement. It has three components. "Inventory days". On average, it indicates how long a product remains in stock before it is sold. "Accounts receivable days" or A / R days. This shows how long it takes a customer to pay an invoice. "Vendor date" or A / P date.
Learn more about Business here: brainly.com/question/24448358
#SPJ4
Answer:
d. the relationship between cost and output.
Explanation:
Production function describes how the output of a production function <em>relates </em>to differing levels of input factors such as labor , technology and machine.
The higher the input factors, the higher the physical output whereas, the lower the inputs, the lower the physical outputs of production.
Answer:
Ki = 0.063 or 6.30%
Explanation:
The CAPM or Capital asset pricing model is an approach to calculate the required rate of return of a stock. The required rate of return or cost of equity is the minimum return required by the investors o invest in a stock based on the systematic risk of the stock. The formula to calculate the required rate of return of a stock using the CAPM is,
Ki = Rf + β * (Km - Rf)
Where,
- Rf is the risk free rate
- β is the beta of the stock
- Km is the expected return on the market
Ki = 0.03 + 1.1 * (0.06 - 0.03)
Ki = 0.063 or 6.3%
Answer: 27 times
Explanation:
Market price of common stock = $67.50
Net income = 150,000
Weighted average number of common shares outstanding = 60,000
Value of each shares = 150,000 / 60,000 = $2.5 per share
The price Earnings ratio will then be:
= market price per share / earnings per share
= $67.50 / $2.50
= 27 times
