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kirill115 [55]
3 years ago
12

What is the present value of a perpetuity that pays you annual, end-of-year payments of $950.00? Use a nominal rate (monthly com

pounding) of 7.75%. (Hint: use EAR).
Business
1 answer:
BARSIC [14]3 years ago
6 0

Answer:

Present value of perpetuity is $12,242.27

Explanation:

Nominal rate is compounded monthly so the effected rate will be different due to monthly compounding effect.

Effective annual rate is calculated as follows

EAR = [ ( 1 + r )^n ] - 1

EAR = [ ( 1 + 0.0775/12 )^12 ] - 1

EAR = [ ( 1.0775 )^12 ] - 1

EAR = 7.76%

Present value of perpetuity = Cash flow / discount rate

Present value of perpetuity = $950 / 7.76%

Present value of perpetuity = $950 / 0.0776

Present value of perpetuity = 12,242.27

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You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on t
FromTheMoon [43]

Answer:

The correct answer is letter "E": A secondary market transaction.

Explanation:

The secondary market refers to all transactions of securities that happen after the stock's initial offering. It can also refer to the exchanges themselves where these transactions take place. The New York Stock Exchange (<em>NYSE</em>) and the National Association of Securities Dealers Automated Quotation (<em>NASDAQ</em>) are examples of secondary market exchanges.

3 0
3 years ago
Is there a danger of vendors overstocking walmart shelves by virtue of using retail link and empowering vendors?
xxTIMURxx [149]

Probably. But Walmart's own managers oversee the inventory system and can quickly spot those vendors who would take advantage of their access to Retail Link.

Walmart, Inc. (/ˈwɔːlmɑːrt/; formerly Walmart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also known as supercenters), discount department stores, and grocery stores in the United States and is headquartered in Bentonville. is. , Arkansas[10] The company was founded by Sam Walton in nearby Rogers, Arkansas in 1962 and incorporated on October 31, 1969, under the Delaware General Corporation Law. It also owns and operates Sam's Club retail warehouse.

As of July 31, 2022, Walmart has 10,585 stores and clubs in 24 countries, operating under 46 different names. [2][3][4] The company operates under the Walmart name in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, and as Flipkart Wholesale in India.

Learn more about Walmart here

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7 0
2 years ago
_________ is a class of analytics tools that helps an organization align its strategy with what is happening within the operatio
prohojiy [21]

Answer: Business intelligence

Explanation:

Business intelligence is a class of analytics tools that helps an organization align its strategy with what is happening within the operation.

Business intelligence (BI) combines data tools, mining, visualization, business analytics, and infrastructure, in order to assist businesses to make more decisions that are data-driven.

6 0
3 years ago
A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,00
stepladder [879]

Answer:

the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.

Explanation:

The costs of producing the 2000 units per day will be lower due to the following reason:

<em>Economies of scale.</em> The company will enjoy the benefits associated with large scale productions. When purchasing raw materials, the company will be a position to bargain for better discounts. The production cost is spread among finished products. A large production keeps the cost per item low.

<em>Some fixed costs may not change</em>. By adding a new plant, the company will increase production activities. Variable costs will increase, but some fixed costs are likely to remain the same. Administrative cost, top management salaries will not be affected. It means a larger number of finished used will absorb the fixed cost.

<em>Efficient machines</em>: The company has invested in new and more efficient machines. Efficiency implies the use of less labor, less power, and faster production. The result is a lower cost of production.

5 0
3 years ago
Candela Company has retained earnings of $500,000, common stock of $400,000, and total common stockholders’ equity of $1,200,000
nexus9112 [7]

Answer: A stock split will not have any effect on the total common stockholders' equity of $1,200,000.

Explanation:

A stock split is the issue of shares to the stockholders of a company. In this case, a stockholder will have 2 shares for a 1 share held earlier. Because the total equity does not change, the value of each share falls, reducing the market price. The total number of common stock however will increase.

The calculation is done in the following way.

Candela has common stock outstanding of 200,000

2x : 1 ( 2 x 200,000: 200,000)

=400,000 common stock

7 0
3 years ago
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