1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
n200080 [17]
3 years ago
11

Everything else equal, an asset's value is:

Business
1 answer:
Harrizon [31]3 years ago
7 0

Answer:

The correct option is A, an asset's value is inversely related to the rate of return investors require to purchase it

Explanation:

The asset value is the initial purchase price determined by discounting the future cash flows from the asset to present values using a the required rate of return.

Ultimately, the higher the required return, the lower the present value of the investment whose price is being determined and the lower the discount the rate of return used in discounting relevant cash flows to present values the higher the present values.

You might be interested in
What is the best sequence for creating business organization?
Mariana [72]

Answer:

Know and be able to differentiate among the four types of organizational structure.

Understand why a change in structure may be needed.

4 0
3 years ago
Read 2 more answers
Ridge Company issues $10,000,000 10-year, 9% bonds on 3/1/17 at 97 plus accrued interest. The bonds are dated January 1, 2010, a
lilavasa [31]

Answer:

$9,850,000

Explanation:

Calculation for What is the total cash received on 3/1/17

Total cash received on 3/1/17=$10,000,000 × .97) + ([9%*$10,000,000) × 2/12]

Total cash received on 3/1/17=$10,000,000 × .97) + ($900,000 × 2/12)

Total cash received on 3/1/17=$9,700,000+$150,000

Total cash received on 3/1/17 = $9,850,000

Therefore the total cash received on 3/1/17 is $9,850,000

8 0
3 years ago
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi
jonny [76]

Answer:

14 Months

Explanation:

Last year’s sales = $163,508,343

As per the given data next year sales is increased by 3.0%.  

= 0.03 * $163,508,343 = $4,905,250.29 ~= $4,905,250  

Revenue added to the bottom line = 34.1% of increased demand

= 0.341 * $4,905,250 = $1,672,690.25~= $1,672,690

TQM investment = $2,000,000

Payback = (Investment in TQM / Revenue added to the bottom line) * 12

= ($2,000,000 / $1,672,690) * 12 = 14.34 ~= 14 Months

Hope this helps!

8 0
2 years ago
Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $100,000, and FCF is expected to grow at a constan
Molodets [167]

Answer:

Value of firm today = $2,000,000

Explanation:

Provided details are,

Future Cash Flow = $100,000

Expected growth rate = 6.5%

Weighted average cost of capital = 11.5%

Firm's total corporate value = \frac{Future\ Cash\ Flow}{Cost\ of\ capital - growth\ rate}

= \frac{100,000}{0.115 - 0.065}

= \frac{100,000}{0.05}

= $2,000,000

Thus, value of firm today with the details provided = $2,000,000

5 0
3 years ago
Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two-acre yards. The oth
goldenfox [79]

Answer: estimation

Explanation:

3 0
2 years ago
Other questions:
  • Select the correct answer.
    9·1 answer
  • Researchers have discovered that "cyber-ostracism" by strangers elicits increased activity in the
    14·1 answer
  • The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi
    11·1 answer
  • Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of
    9·1 answer
  • Although there are numerous stages in the new-product process, firms develop a strategy, then start ________ and continue the pr
    15·1 answer
  • At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
    15·1 answer
  • Joey moved from NY to NV because he was transferred by his employer, Big Casinos Inc. His employer reimbursed his moving expense
    12·1 answer
  • Explain the effect of a lack of shortage of entrepreneurs in the economy ​
    8·1 answer
  • Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by chan
    10·1 answer
  • Ferguson corp. purchased inventory on account for $20,000. the entry to record this transaction would include?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!