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3 years ago

9

You will pay $7,000 now to purchase a perpetuity which will pay you and your heirs $340 at the end of each year, forever. What i

s the rate of return on this perpetuity?

2 answers:

Katen [24]3 years ago

5 0

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

I hope my answer helps you

Naddika [18.5K]3 years ago

4 0

Answer:

4.86%

Explanation:

Interest rate of a perpetuity = amount / present value

$340 / $7,000 = 0.048571 = 4.86%

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"Gamboa, Inc. sold 100 selfie sticks for $25 each. If the selfie sticks had an average cost of $1 to produce, how much profit di

IRISSAK [1]

Answer:

$2400

Explanation:

Average cost is the ratio of total cost of production to the total number of units produced, it is the sum of both the average fixed cost and the average variable cost. The average cost is given by the formula:

Average cost = Total cost / number of units.

Given that:

The total number of units produced = 100 selfie sticks, Average cost = $1 and Price of each selfie stick = $25

From Average cost = Total cost / number of units.

Substituting gibes:

$1 = Total cost / 100 selfie stick

Total cost = $1 × 100 = $100

Total cost = $100

Revenue = Price per item × Number of items

Revenue = $25 × 100 = $2500

Profit = Revenue - Total cost

Profit = $2500 - $100 = $2400

Total cost = $2400

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3 years ago

Affiliate marketing is _____.

statuscvo [17]

Answer:

the practice of advertising the products and services of several companies on Web pages, blogs, and streaming music services, among other outlets and paying compensation for either the referral or the sale

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3 years ago

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Evan Company reports net income of $140,000 each year and declares an annual cash dividend of $50,000. The company holds net ass

Taya2010 [7]

Answer:

$708,000

Explanation:

The computation of Investment in Evan Company balance is shown below:-

Purchase of Evan stock = $600,000

Book Value of Evan Stock = Net assets - Given percentage

= $1,200,000 x 40%

= $480,000

Goodwill = Purchase of Evan stock - Book Value of Evan Stock

= $600,000 - $480,000

= $120,000

Life of Goodwill is Indefinite

Annual Amortization is Zero

Cost = $600,000

Income Accrued 2017 = Net income × Given percentage

= $140,000 x 40%

= $56,000

Dividend 2017 = Cash dividend × Given percentage

= $50,000 x 40%

= $20,000

Income Accrued 2018

= $140,000 x 40%

= $56,000

Dividend 2018

$50,000 x 40%

= $20,000

Income Accrued 2019

= $140,000 x 40%

= $56,000

Dividend 2019

$50,000 x 40%

= $20,000

Equals Investment in Evan, 31/12/2019 = Purchase of Evan stock + Income Accrued 2017 - Dividend 2017 + Income Accrued 2018 - Dividend 2018 + Income Accrued 2019 - Dividend 2019

= $600,000 + $56,000 - 20,000 + 56,000 - 20,000 + 56,000 - 20,000

= $708,000

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3 years ago

Place each of the following transactions in one of the four components of expenditure: consumption, investment, government purch

slega [8]

Answer:

a. Boeing sells an airplane to the U.S. Air Force. - government purchases.

The U.S. Air Force is a branch of the government, and is buying the airplane from Boeing. Therefore, this is a government purchase.

b. Boeing sells an airplane to American Airlines. - investment.

America Airlines, a private company, is buying the airplane to make profit from it. Therefore, it is an investment.

c. Boeing sells an airplane to Air France. - net exports.

Boeing, an American manufacturer, is selling an airplane to a foreign company: Air France, this is an import, and imports are part of net exports.

d. Boeing sells an airplane to Amelia Earhart. - consumption.

Amelia Earhart, a person, is buying an airplane. This is private consumption.

e. Boeing builds an airplane to be sold next year. - investment.

This airplane is finished inventory ready to be sold, and this type of inventory is considered an investment in the GDP calculation.

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4 years ago

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Norma-Jean [14]

Answer:

HAZARD INSURANCE is included as part of a fixed expense in the calculation of net operating income(also ppty taxes).

Explanation:

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Hazard insurance is coverage that protects a property owner against damage caused by fires, severe storms, earthquakes, or other natural events. As long as the specific weather event is covered within the policy, the property owner will receive compensation to cover the cost of any damage incurred. Typically, the property owner will be required to pay for a year's worth of premiums at the time of closing, but this will depend on the exact details of the policy.

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