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WITCHER [35]
4 years ago
12

You are comparing two annuities. Annuity A pays $100 at the end of each month for 10 years. Annuity B pays $100 at the beginning

of each month for 10 years. The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information
A) The future value of Annuity A is greater than the future value of Annuity B.B) Annuity B will pay one more payment than Annuity A will.C) Annuity A has a higher future value but a lower present value than Annuity B.D) Annuity B has both a higher present value and a higher future value than Annuity A.E) The present value of Annuity A is equal to the present value of Annuity B.
Business
1 answer:
Liono4ka [1.6K]4 years ago
3 0

Answer:

d. a union representative urging management to avoid a strike by raising wages

Explanation:

The persuasive speaking includes some important elements, its principal objective is to convince the listener about an specific point of view. It may include three principal methods: pathos, ethos and logos.

In this case the Union representative is trying to persuade the management to rise salaries, he can be appealing to Logos strategy. Logos is to use logical arguments to convince the audience, they will be evaluating if the argument of the speaker makes sense.

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Burnett Corp. pays a constant $9.80 dividend on its stock. The company will maintain this dividend for the next 14 years and wil
lys-0071 [83]

Answer:

The current price of the stock is $68.42

Explanation:

The dividends on a stock that pays a constant dividend and will cease paying dividend after a defined period can be treated as an annuity. The dividends are constant and are paid after equal interval of time and for a defined period of time. To calculate the price of the share today, we will use the formula for the present value of ordinary annuity. The formula is,

Present value = 9.8 * [ 1 - (1+0.11)^-14 / 0.11 ]

Present value or current price of the stock = $68.42

6 0
4 years ago
When the interest rate in the economy was 10 percent, the price of a bond with no expiration date that paid a fixed annual inter
Nina [5.8K]

Answer:

Option D $8333

Explanation:

The value of the irredeemable bond can calculated using the Dividend Valuation Model.

The formula for the computation is:

Value of the Bond = Interest paid / rate of return on a similar bond

Value of the Bond = $500 / 6% = $8333.33

Note that initially the bond was worth $5000 which can be calculated with the same formula:

Value of the Bond = $500 / 10% = $5000

The net increase is $3333

So the correct answer is option D.

7 0
3 years ago
Sunny Day Manufacturing Company has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2
seropon [69]

Answer:

Alpha Moose Transporters's retained earnings breakpoint is B. $1,655,556

Explanation:

Addition to retained earnings = $745,000

Weight of equity = 45%

Retained earnings breakeven = $745,000 / 45%

= $1,655,556.

Retained earnings breakeven is $1,655,556.

7 0
3 years ago
Read 2 more answers
A rightward shift in aggragate Demand (for US) can be caused by which of the following Increase in consumer waelth, increase in
Rudiy27

Answer:

Option A Increase in consumer wealth

Explanation:

The reason is that when the consumer wealth increases his purchasing power increases which enables him to opt to items which greater in value and also that the person starts satisfying his personal needs and wants which means that the person is spending more and if the person is spending more then the aggregate demand of the product and services will increase. Furthermore the increase in taxes, costs and value of US dollar decreases the demand because it increases the prices of the product and increase in price of the product or services decreases the demand of the product both in the domestic and international market. So the right option is A.

5 0
3 years ago
Assuming purchase costs are declining and a periodic inventory system is used, determine the statements below which correctly de
choli [55]

Answer:

Explanation:

 The first statement is Incorrect that Companies using LIFO will report the smallest cost of goods sold. Rest all the three statements that have been provided are correct.

Statement A - Incorrect

Statement B – Correct

Statement C – Correct

Statement D – correct the goods sold. companies using FIFO will report the smallest cost of goods sold.

8 0
3 years ago
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