Answer:
the annual payment for the second annuity is $2,130 paid at end of every year
Explanation:
We have following information for 1st annuity:
Rate: 6.5%
Payment (PMT): -$2,000, paid at beginning of every year
Tenor (Nper): 20 years
We use excel to calculate the present value of annuity = PV(rate,Nper,PMT,,1)
=PV(6.5%,20,-2000,,1) = $23,469
Then we calculate the payment for 2nd annuity = PMT(rate,Nper,PV,,0)
=PMT(6.5%,20,23469,,0) = -$2,130
Answer:
The correct option is c. $95.40.
Explanation:
To calculate, we have to first calculate the dividend payable 2 years from now as follows:
g = constant dividend growth rate = 6%, or 0.06
D0 = Dividend just paid = $5.09
D1 = Dividend payable 1 year from now = D0 * (1 + g) = $5.09 * (1 + 0.06) = $5.40
D2 = Dividend payable 2 years from now = D1 * (1 + g) = $5.40 * (1 + 0.06) = $5.724
The price at which the stock will sell one year from now can now be calculated as follows:
P = D2 / (r - g) ................... (1)
Where;
P = The price at which the stock will sell one year from now = ?
D2 = Dividend payable 2 years from now = $5.724
r = required rate of return = 12%
g = constant dividend growth rate = 6%
Substituting the values into equation (1), we have:
P = $5.724 / (12% - 6%)
P = $5.724 / 6%
P = $95.40
Therefore, the correct option is c. $95.40.
Answer:
Matching Statements to Appropriate Terms:
Price-earnings ratio = Profitability Ratio
Return on Assets = Profitability Ratio
Accounts Receivable Turnover = Liquidity Ratio
Earnings per share = Profitability Ratio
Payout ratio = Profitability Ratio
Working capital = Liquidity Ratio
Current ratio = Liquidity Ratio
Debt to Assets = Solvency Ratio
Free Cash Flow = Solvency Ratio
Explanation:
Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.
Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets. They include the working capital, the current ratio, and the acid-test ratio.
Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.
Total output of an economy can be divided into its alternative uses by considering who bought the output. when other countries purchase part of an economy's output, this is called Gross Domestic Product [GDP],
<h3>Gross Domestic Product</h3>
The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.
Although it is often calculated on a yearly basis, GDP can also be computed on a quarterly basis. For instance, the US government estimates the annualized GDP for the entire year as well as each fiscal quarter.
To know more about 'GDP', visit :brainly.com/question/1383956
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Answer:
Crowdfunding
Explanation:
Loans means you borrowed with an expected amount of interest while investors also means they gave you the money expecting you to double it or perhaps even triple so they get their gain in many instance it could also means they want a part of your company so it's not the answer, selling products also isn't the answer since you're making an exchange of a product for money, now if you listen to the question well it mentioned Donations which means giving out money or charity so crowdfunding is the answer because by it's name alone Crowd-Funding
