Answer:
Present value Discount rate 7% Discount rate 0%
Cash stream A $1,217.11 $1,500
Cash stream B $1,239.27 $1,500
Explanation:
Since there is two cash stream i.e A and B and we have to find out the present value of each cash stream through a discount rate of 7% and 0%
The workings are shown in the attached spreadsheet
Plus the discount factor is computed by
= 1 ÷ (1 + rate) ^ years
For Year 1 = 1 ÷ 1.07^1 = 0.9345794393
For Year 2 = 1 ÷ 1.07^2 = 0.8734387283
and so on
Answer:
The correct answer is (B)
Explanation:
Liquidity preference theory emphasised on the interest which investors should demand on long-term investments due to the risk they carry. According to liquidity preference theory, a decrease in the price level shifts the money demand curve leftward. A leftward movement of the money demand curve increases the overall quantity demanded. In that regard, a decrease in interest rate increases the demand for goods and services demanded.
Answer:C
Explanation:
Educated guess. Proper understanding of the environment helps to make informed decisions
Answer:
a. Net income for 2021 $1,600,000
Less: Preferred dividends <u>$120,000 </u> (40000*$3)
Net income for Common Stockholders $1,480,000
Divide by Common Shares outstanding <u>600,000 </u>
Basic Earnings per share for 2021 <u>$2.47 </u>
<u></u>
b. If company's preferred stock were convertible into common stock, diluted earnings per shares will also have to be calculated.
The answer is
"Individual".<span>
<span>Each of these mentioned factors with few variations will
influence the business buying decision process. One or more changes in these
might lead to a different result. These factors can also operate in different
ways varying from person to another person.</span></span>