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Likurg_2 [28]
3 years ago
6

Clarissa wants to fund a growing perpetuity that will pay $ 4 comma 000 per year to a local​ museum, starting next year. She wan

ts the annual amount paid to the museum to grow by 5​% per year. Given that the interest rate is 8​%, how much does she need to fund this​ perpetuity?
Business
1 answer:
musickatia [10]3 years ago
6 0

Answer:

To fund this perpetuity, she needs $133,333.33 today.

Explanation:

The growing perpetuity that is growing at a constant rate is just like a constant dividend growth stock. The amount paid to the museum will grow at a constant rate of 5%. Using the same approach as the constant growth model of DDM, the amount of fund needed to be invested for this perpetuity can be calculated as,

PV = Cash flow 1 / i - g

Where,

  • Cash flow 1 is the amount that will be paid to the museum next year.
  • i is the interest rate
  • g is the growth rate in funds

PV = 4000 / (0.08 - 0.05)

PV = $133,333.33

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Y_Kistochka [10]

Answer:

1. 1.5 Times

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3.0.775 Times

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5.$100,000

Explanation:

Liquidity ratios can be found by just simply putting the given values in their appropriate formulas. All you have to memorize is the simple formulas

1.Current Ratio  

CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES

CURRENT RATIO = $300,000/$200,000

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2. Working Capital

WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES

WORKING CAPITAL= $300,000 - $200,000

WORKING CAPITAL= $100,000

3. Acid ratio

ACID RATIO = CURRENT ASSETS - INVENTORY - PREPAID EXPENSES/CURRENT LIABILITIES

ACID RATIO = ($300,000 - $110,000 - $35,000)/$200,000

ACID RATIO = 0.775 Times

4. Receivable turnover

RECEIVABLE TURNOVER = CREDIT SALES/AVERAGE RECEIVABLE

RECEIVABLE TURNOVER = $750,000/$75,000

RECEIVABLE TURNOVER = 10 Times

<u>Working</u>

AVERAGE RECEIVABLE = (Opening receivables+Closing receivables)/2

AVERAGE RECEIVABLE = ($55,000 + $95,000) / 2 = $75,000

5. Inventory Turnover

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INVENTORY TURNOVER = $400,000 / $100,000

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AVERAGE INVENTORY = (Opening inventories+Closing inventories)/2

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3 0
3 years ago
The period between March 9 and June 16, 1933, when Congress passed 15 major acts to meet an economic crisis, was called________.
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The period between March 9 and June 16, 1933, when Congress passed 15 major acts to meet the economic crisis of the Depression was called <u>the hundred Days</u>. As we know that the First New Deal began in a whirlwind of legislative action called “The First Hundred Days.” From March through June 1933, at Roosevelt’s behest, Congress passed legislation aimed at addressing the banking crisis, unemployment, and weak industrial performance, among other problems, through an “alphabet soup” of new laws and agencies.

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Statistics are used in place of parameters for making decisions since they are simpler to collect.

<h3>What are the guidelines?</h3>

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To describe the entire population under study, a parameter is utilized. For instance, we are interested in learning the typical length of a butterfly. This information about the total butterfly population makes it a parameter.

Three different parameter kinds,

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To learn more about parameters, refer to:

brainly.com/question/13794992

#SPJ4

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