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3 years ago

The time value of money refers to:

Business

2 answers:

Rina8888 [55]3 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]3 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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Carol works for firm x. she takes long breaks and often daydreams when she is being paid to work. carol is

lakkis [162]

The answer is A because she could be watching people while daydreaming

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3 years ago

Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the

telo118 [61]

Answer:

a. $175.50 and $11,060,000

b. $31,242,500

Explanation:

The computation of the fixed cost and the variable cost per unit by using high low method is shown below:

Variable cost per units = (High total cost - low total cost) ÷ (High units produced - low units produced)

= ($32,120,000- $25,100,000) ÷ (120,000 units - 80,000 units)

= $7,020,000 ÷ 40,000 units

= $175.50

Now the fixed cost equal to

= High total cost - (High units produced × Variable cost per unit)

= $32,120,000 - (120,000 units × $175.50)

= $32,120,000 - $21,060,000

= $11,060,000

Now the estimated total cost is would be

= Fixed cost + expected units of production × variable cost per unit

= $11,060,000 + 115,000 units × $175.50

= $11,060,000 + $20,182,500

= $31,242,500

5 0

3 years ago

Read 2 more answers

Sultan Services has 1.2 million shares outstanding. It expects earnings at the end of the year of $6.0 million. Sultan pays out

Kisachek [45]

Answer:

A) $60.00

Explanation:

to calculate the value of Sultan's stocks, we need to use the growing perpetuity formula:

stock price = dividend / (required return rate - growth rate)

dividend = ($6,000,000 x 60%) / 1.2 million shares = $3,600,000 / 1.2 million shares = $3 per share
required return rate = 10%
growth rate = 5%

stock price = $3 / (10% - 5%) = $3 / 5% = $60 per share

5 0

3 years ago

A municipal bond carries a coupon of 6.75% and is trading at par. What is the equivalent taxable yield to a taxpayer in a combin

Bingel [31]

Answer:

10.23%

Explanation:

Formula for computation of equivalent taxable yield is r = rm/1-t. Where the tax rate is t, rm is Yield on municipal bond and r is Tax equivalent yield

r = rm/1-t

r = 6.75% / 1 - 34%

r = 6.75% / 0.66%

r = 10.22727272727273%

r = 10.23%

So, the equivalent taxable yield to a taxpayer in a combined federal plus state 34% tax bracket is 10.23%.

8 0

2 years ago

Using a single plantwide rate from question 25, the factory overhead allocated per unit of Product A in the Painting Department

fiasKO [112]

Answer:

a. $236.32 per unit

Explanation:

The Full question is "Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. Overhead Total Direct Labor Hours DLH per Product A B Painting Dept. $250,000 10,000 16 4 Finishing Dept. 75,000 12,000 4 16 Totals $325,000 22,000 20 20"

A single plant wide factory overhead rate is been used. Thus, Overhead rate per hour = $325000 / 22000 hrs = $14.77

The total hours required to produce a product = 20 hours in painting + 20 hours in finishing

The total hours required to produce a product = 40 hours

Overhead per product = Overhead rate per hour * The total hours required to produce a product

Overhead per product = $590.8

The DLH required for a product A in painting department = 16 DLH

. Overhead rate per unit for product A in painting department = ($590.8/40 DLH) *16 DLH = $236.32 Per Unit

8 0

3 years ago