Answer:
- Compound Interest ⇒ FV = PV x (1 + I ) ^N
- Simple Interest ⇒ FV = PV x I x N
Explanation:
With compound interest the rate of growth needs to be compounded which is why the time period is used to exponentially adjust it.
With simple interest there is no compounding so the value is simply the interest that will be earned every period (which is a constant value) multiplied by the number of periods and the amount to be invested.
Answer: False.
Explanation:
False.
This indicates that the two goods are substitute goods, not the complementary goods.
In case of complementary goods, the price of one good is inversely related with the demand for other related good. For example, car and petrol; if the price of petrol increases as a result demand for cars decreases.
In case of substitute goods, the price of one good is directly related with the demand for other related good. For example, tea and coffee; if the price of coffee increases as a result demand for tea increases. So, there is a positive relationship between the price of one good and demand for the other good.
Answer:
Stockholder theory
Explanation:
Stockholder theory
This theory was introduced in 1960's by Milton Friedman ,
According to this theory , The managers of the corporation have a duty to maximize the returns of the shareholder .
Therefore , due to the cyclic nature of the business hierarchy , the corporation is mainly responsible to its stockholders .
Answer:
18.24
Explanation:
Sustainable growth rate is the rate of growth a company can afford in the long term
sustainable growth rate = retention rate x ROE
b = retention rate. It is the portion of earnings that is not paid out as dividends
Retention rate = 1 - payout ratio =
payout ratio = dividend / net income
retention rate = 1 - $44,640 / 72,000 = 0.38
Return on equity = net income / average total equity
= 72,000 / 150,000 = 0.48
g = 0.48 x 0.38 = 18.24%
Answer:
<u>Reffeal</u>
Explanation:
A letter of reference is an effective method for establishing clear communication with information needed to clarify possible doubts and bring credibility. It should be written in a formal manner, highlighting the strengths of the message to be conveyed beyond clear, accurate and honest language.
