Answer:
A real account is a publicly generalized account that does not close at the end of the considered year. Apparently, the balances in real accounts are carried over to become the start of balances of the next period. Real accounts are also permanent accounts.
Answer:
C) $41.45
Explanation:
Valorous Corporation
Using a financial calculator
CF0 = 0
CF1 = 1.8
CF2 = (44 + 2.4) = 46.4
Hence calculate NPV at I = 8%,
=$41.45.
Therefore the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today will be
$41.45
Answer:
d. A perpetuity is a stream of regularly timed, equal cash flows that continues forever.
Explanation:
A perpetuity refers to a future stream of cash flows, paying a constant amount regularly till forever. Such stream is never ending.
The present value of a perpetuity is computed by dividing the constant amount receivable till forever, by required rate of return/cost of capital.
Present value of a growing perpetuity is given by
=
wherein cash flows represent cash flows receivable growing at g% rate till forever
r = required rate of return or cost of capital
g= growth rate of cash flows
Where the cash flows are of constant amount i.e non growing nature, the present value of such a perpetuity is given by,
=
Answer:All of the choices describe intermediate error events.
Explanation:Intermediate error events are triggered when a token causes a fault name to be raised in a normal flow, going through to an Error End Event. Intermediate error event shows changes in the normal sequence caused by an exception in the process. There are basically 2ways in which intermediate error event can be used, it includes when used as a sequence flow of a process or as boundary events related to certain activity or activities, it indicates alternative sequence flow,it is noted with a leaning flash or z sign.
Answer:
B) to the extent of her capital contribution to the firm.
Explanation:
The characteristics of a limited partnerships are:
- limited partnerships, unlike general partnerships, must be filed with a state government
- the partners of a limited partnership have limited personal liability which equals the amount of their participation in the partnership, e.g. Darin is only liable to a maximum amount that equals her participation in the partnership
- limited partnerships are controlled by the partners
- limited partnerships are taxed like general partnerships