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lord [1]
3 years ago
13

Joseph has just accepted a job as a stockbroker. He estimates his gross pay each year for the next three years is $35,000 in yea

r 1, $21,000 in year 2, and $32,000 in year 3. The present value of these cash flows, if they are discounted at 4%, is closest to ______.
A. $79,452.30
B. $80,294.50
C. $81,517.10
D. $88,000
Business
1 answer:
Kamila [148]3 years ago
5 0

Answer:

The present value of the cash flows is closest to $81517.10. Thus, option C is the correct answer.

Explanation:

The present value of the cash flows is the value of future cash flows in today's terms. The cash flows are discounted back to today's value using an appropriate discount rate. The formula to calculate the present value of such cash flows is,

PV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  CF3 / (1+r)^3

Thus, the PV = 35000 / (1+0.04)  +  21000 / (1+0.04)^2  +  32000 * (1+0.04)^3

PV = $81517.4101

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In calculating earnings per share, companies deduct preferred dividends from net income if:
Savatey [412]

Answer: Option B

Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.

Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.

7 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B
Orlov [11]

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million    

Current liabiltiy = 15 Million/3

                          = 5 Million    

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement    

(15 + x)/5+x = 2.5    

       15 + x  = 12.5 + 2.5x    

            2.5 = 1.5x    

               x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

7 0
4 years ago
What is the definition of corporate social responsibility?a. the rules by which social rewards are attainedb. the coordination o
Klio2033 [76]

Answer:

The correct answer is option c.

Explanation:

Corporate social responsibility is a modern concept regarding a companies' sense of responsibility towards the community and the ecological environment.

It means that the businesses have the responsibility to act for the benefit of the society and the environment along with profit maximization.

It is also termed as sustainable business, corporate citizenship etc.

3 0
3 years ago
If Lorenzo stands up at a concert he can see the performance better. He therefore concludes if everyone stood up, everyone could
Lemur [1.5K]

Answer:

The correct answer is letter "B": The statement presents the fallacy of composition.

Explanation:

The Fallacy of composition refers to a fallacy by which an individual believes that something is true just because part of the whole is true. Typically, this type of belief leads to mistaken conclusions because what might be right for one person does not necessarily is right for others.

6 0
3 years ago
You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company.
Mice21 [21]

Answer:

<u>You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best.</u>

Explanation:

This alternative does not represent a form of marketing adaptation, as seen in the following strategies adopted for some countries. This can be explained because the main concept of the marketing strategy developed to sell delicate and old-fashioned jewelry in all international markets, contains a central message, which is "Looking for the best for women". The other messages are adapted to attract women from other countries with different values ​​and culture, so there was an adaptation in the developed slogan, but this still encompasses the central message proposed by the company, all messages reflect the search for the best for women.

7 0
3 years ago
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