1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OlgaM077 [116]
3 years ago
11

You are the star of a blockbuster movie. You can get paid $10,000,000 today or you can get 5.00% of the gross ticket sales for t

he next 10 years. You expect ticket sales to be $50,000,000 per year for the next 5 years, starting next year. If your investments earn 3% APR compounded annually, how much do you gain in PV terms by taking a percentage of gross
Business
1 answer:
Gnoma [55]3 years ago
6 0

Answer:

Gain in PV = $1,449,268

Explanation:

Annual % of gross ticket sales = 5%  * $50,000,000

Annual % of gross ticket sales =$2,500,000

Present value of annuity = Annuity[1-(1+interest rate)^-time period]/rate

Present value of annuity = $2,500,000[1-(1.03)^-5]/0.03

PV = $2,500,000*4.579707187

PV = $11,449,268

Gain in PV terms= =$11,449,268-$10,000,000

Gain in PV = $1,449,268

You might be interested in
Kirby subscribed to purchase 100 shares of stock to be issued by Globule, Inc., an already existing corporation. Globule accepte
creativ13 [48]

Answer: C. No, but he is liable for another $2 per share.

Explanation:

A stock is not to be issued below its par value as this is the lowest price that it is to be issued at. If a par value is $4 for instance, the stock cannot be issued for anything less than this $4.

In this scenario, the par value is $8 per share which means that Globule Inc. cannot issue this share for less than $8. Kirby in paying only $6, is still liable for $2 so that he can at least pay for the stock at its par value.

8 0
3 years ago
Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions involve transaction
Stolb23 [73]

Answer: B2B transactions involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.

Explanation:

Business-to-business transactions are simply regarded as the transactions that takes place between one business and another business. This can occur when the business is looking for inputs for its production process.

Business-to-consumer transactions simply regarded as the transactions that takes place between a business and the customers. This occurs when a business sells its goods or services to the customers directly without the goods passing through the middlemen.

8 0
3 years ago
if i am trying to collect on a debt, can i post requests on social media for information on how to contact the debtor?
Makovka662 [10]

Answer:

i guess you can but don't post any valid information which might expose credit cards or so forth

8 0
2 years ago
Listed here are product costs for the production of soccer balls. Identify each cost (a) as either fixed or variable and (b) as
geniusboy [140]

Answer:

Product Cost Variable Or fixed Direct or indirect

1. Rubber core for soccer ball Variable Direct

2. Thread to hold leather together Variable Indirect

3. Taxes on factory Fixed Indirect

4. Wages on Assembly workers Variable Direct

5. Machinery depreciation Fixed Indirect

6. Annual flat fees paid for office security Fixed Indirect

7. Leather cover for soccer balls Variable

3 0
3 years ago
Find the difference in height between the top of a hill 973 feet high and a crack caused by an earthquake 79 feet below sea leve
s2008m [1.1K]
The difference in height between the hill 973 feet above sea level and the crack 79 feet below sea level is:

 

Difference in height = 973 - (-79)

 

Which is equal to 1052 feet.

4 0
3 years ago
Other questions:
  • Using the information below, compute the raw materials inventory turnover:
    15·1 answer
  • Robert hitchcock is 40 years old today and he wishes to accumulate $500,000 by his 65th birthday so he can retire to his summer
    15·1 answer
  • Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales b
    9·1 answer
  • The return on common stockholders’ equity is computed by dividing a) net income less preferred dividends by ending common stockh
    9·1 answer
  • What is the main difference between the equity and exchange philosophies of compensation?
    5·1 answer
  • Pat Smith is personnel director for a large bank. Her major goal is to find a person who can adapt his or her leadership to diff
    14·1 answer
  • Which of the following auditing procedures will provide evidence to support management’s assertions regarding the allocation and
    12·1 answer
  • Sweet Sue Foods has bonds outstanding with a coupon rate of 5.50 percent paid semiannually and sell for $1,917.12. The bonds hav
    7·1 answer
  • Most people lose their jobs not because they could not do the work, but because they failed to get along and fit in with others
    12·1 answer
  • The CM ____ is responsible for overseeing the actions of the crisis management team and coordinating all crisis management effor
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!