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3 years ago

What is an advantage of government bonds?

1 answer:

6 0

Government bonds<span> provide a means for investors to lend money to </span>governments<span>in exchange for interest payments, it fixes payments and coupons holders for every 6 months.</span>

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. Alternative A has a first cost of $20,000, an operating cost of $9,000 per year, and a $5,000 salvage value after 5 years. Alt

JulsSmile [24]

Answer and Explanation:

The computation is shown below:

NPW of X is

= -$20,000 - $9,000 × (P/A,12%,5) + $5,000 × (P/F,12%,5)

= -$20,000 - $9,000 × 3.604776 + $5,000 × 0.567427

= -$49,605.85

And,

NPW of Y is

= -$35,000 - $4,000 × (P/A,12%,5) + $7,000 × (P/F,12%,5)

= -$35,000 - $4,000 × 3.604776 + $7,000 × 0.567427

= -$45,447.11

Based on the above calculations as we can see that net present cost of Y is lower than the net present cost of X so Y should be selected

7 0

3 years ago

Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends fo

maks197457 [2]

Answer:

The price of the stock today is $42.94

Explanation:

The price of a stock whose dividends are expected to grow at a constant rate is calculated using the constant growth model of Dividend Discount model approach. It bases the price of the stock on the present value of the expected future dividends. The price today under this model is calculated as follows,

P0 = D0 * (1+g) / r - g

Where,

D0 * (1+g) is the D1 or the dividend for the next year
r is the required rate of return
g is the growth rate in dividends

P0 = 4 * (1+0.052) / (0.15 - 0.052)

P0 = $42.938 rounded off to $42.94

6 0

3 years ago

You have $19,750 you want to invest for the next 22 years. You are offered an investment plan that will pay you 9 percent per ye

zheka24 [161]

Answer:

$195,488.6

Explanation:

The computation of the amount at the end of the 22 years is shown below

The Amount at the end of 1st 11 years is

= Principal × (1 + interest rate)^number of years

= $19,750 × (1 + 0.09)^11

= $50,963.42

Now the amount at the end of the last 11 years is

= $50,963.42 × (1 + 0.13)^11

= $195,488.6

hence, the value at the end of the 22 years is $195,488.60

6 0

3 years ago

Fill the blank ("__")

klemol [59]

The free market economy is the one where the buyers & sellers should freely select to buy or make.

The following information related to the free market economy is:

It should depend upon the supply & demand having no government interference.
In this, the buyers & sellers have the right to select for making or buying whatever they want.

Therefore we can conclude that the free market economy is the one where the buyers & sellers should freely select to buy or make.

Learn more about the economy here: brainly.com/question/11905095

3 0

3 years ago

The real estate financing instrument which transfers equitable title to real property, but retains legal title in the seller, is

natita [175]

Answer:

Operating Leasing

Explanation:

Legal title is retained by the seller, buyer enjoys equitable title (during the lease contract duration) of the property (e. g. using land, leased buildings or machinery for the business needs),

7 0

3 years ago