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klio [65]
3 years ago
12

An investment pays $400 in one year, X amount of dollars in two years, and $500 in three years. The total present value of all t

he cash flows (including X) is equal to $1,500. If i is 6 percent, what is X?
Business
1 answer:
k0ka [10]3 years ago
6 0

Answer:

X = 789.70

Explanation:

we solve for X considerign each deposit is discounted at the given rate using the lump sum formula:

\frac{Maturity}{(1 + rate)^{time} } = PV

\frac{400}{1.06}+\frac{X}{1.06^2}  +\frac{500}{1.06^3} = 1,500\\X= (1,500 - \frac{400}{1.06} - \frac{500}{1.06^3}) \times 1.06^2

X = 789.7018868

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You are considering purchasing a stock that currently sells for $50. The expected price of the stock in a year is $45, and durin
Verizon [17]

Answer:

The holding period return of the stock is - 6 %  or - 6.0%

Explanation:

Solution

Given that:

You are thinking of purchasing a stock that currently sells for= $50

The expected price of the stock =$45

Dividend expected to be paid =$2

Risk free rate = 5%

Market return = 10%

Stock (beta) = 0.85

We will now find the holding period return of the stock which is given below:

The formula for calculating the holding period return of a stock is  given as,

= The Expected price in a year + Dividend earned during the year – Purchase Price  / Purchase Price

We recall that:

The Purchase Price = $ 50  

Expected price in a year = $ 45

Dividend earned during the year = $ 2

Now,

By Applying the above values in the formula we have the holding period return of the stock as :

=  [45 + 2 – 50] / 50

= - 3 / 50

= - 0.0600 = - 6.00 %

= - 6.0 % ( when rounded off to one decimal place )

Therefore, the Holding period return of the stock is - 6 %  or - 6.0%

8 0
3 years ago
Broker Bill has several agents in his employ. Agent Smith, an "S-Corporation" himself, has his commission checks written out to
algol [13]

Answer:

C. managing broker over Agent Smith

Explanation:

a managing broker is someone is  held liable over the actions of another broker office or agency that act on the managing broker's behalf. Thse office or agnecy are allowed to act without direct order from the managing broker, but managing broker will be the one that receive all the consequences.

All the profit that is made by managed entity (in this context agent smith) will have to goes to managing broker first and the managing broker will share the profit on a private term with Agent Smith.

In return, the managing broker will have to ensure that all of the agents that he/she has under disposal have to follow the compliance rule that is made by the government. He will manage the licence and annual tests of the agents in order to ensure consumer safety.

3 0
3 years ago
A clothing company is planning an event in which it will provide clothes to homeless children in countries where the company has
inn [45]

Public relations advertising

8 0
2 years ago
What is a typical first transaction for a business?
sammy [17]

Answer:

In summary, that first business transaction involved the exchange of goods and/or services between buyers and sellers. Initially it probably took place in the context of kin altruism and later expanded to reciprocal altruism.

Explanation:

3 0
3 years ago
Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Sinc
zzz [600]

Answer:

Your professor hands you a piece of paper with the number 75 on it and tells you this is your current average in the class. Since this is your fourth year as a college student, you know you could work hard to bring that average up to a B by the end of the semester. This is data.

D. data

Explanation:

To understand what data is, consider the explanation below;

1. Data: data is a piece of raw information that can be converted to useful information. They are facts and statistics usually derived from observations and study that once processed and analysed, useful information can be extracted from it. Data can be analysed in different ways depending on the expected results. In the modern age, data is very important since they provided a factual basis for theories. Data can be processed manually or through the use of software applications.

An example of data is the score that the professor gave you which is 75, this score implies a specific grade ranking. This data was useful to you, since you analysed it and came to the conclusion that by working hard you can average this score up to a B by the end of the semester. The process through which you took the data which is 75, analysed it by comparing it to the grading system and coming to a conclusion is an example of data processing.

3 0
3 years ago
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