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2 years ago

The time value of money refers to:

Business

2 answers:

Rina8888 [55]2 years ago

5 0

Answer:

D. increases in an amount of money as a result of interest.

Explanation:

Economists explain that the interest rate is an economic variable that synthesizes the value of money over time. If you have a value today and apply that amount at a rate X% per month, at the end of the month you will have the total amount applied + X. This means your money has increased as a result of the interest earned on the application.

For example: $ 1000 at an interest rate of 1% per month. In 1 month you will get $ 1000 + $ 10 = $ 1010. In short, you have been in a better financial position due to the yield over time of your application.

Note: 1000 * 1% = 1000 * 0.01 = 10

Ghella [55]2 years ago

3 0

The answer is D. <span>increases in an amount of money as a result of interest.

Time Value of Money (TVM) is the idea that the money you have now can be invested to earn you more money. It is worth more in the bank now (because of investment) than a promise to receive 5 dollars in the future. </span><span>
</span>

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You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 4.2 percent indefinitely

mylen [45]

Answer:

$54.35

Explanation:

The computation of the price per share of the common stock is shown below:

= Next year dividend ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $3.23 + $3.23 × 4.2%

= $3.23 + 0.13566

= $3.37

And, the other items would remain the same

So, the price per share is

= $3.37 ÷ (10.4% - 4.2%)

= $3.37 ÷ 6.2%

= $54.35

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musickatia [10]

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Read 2 more answers

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zysi [14]

Answer:

Head Office Cost Allocations

Explanation:

Usually Projects have Head Office costs that are allocated to them.

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The Head office costs are a costs that is incurred at Head office as well.

Thus, Head Office Costs allocations are <em>irrelevant</em> and must not be included in the analysis.

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3 years ago