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
Anastasy [175]
3 years ago
12

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i

s: A stock with no maturity is an example of a perpetuity. Quantitative Problem: You own a security that provides an annual dividend of $170 forever. The security’s annual return is 9%. What is the present value of this security? Round your answer to the nearest cent. $
Business
1 answer:
Alborosie3 years ago
4 0

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

PresentValue=\frac{Coupon}{r}

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = \frac{170}{0.09} = $1,888.89

You might be interested in
Which is not a typical job responsibility for a marketing communications manager? A. Creating marketing presentations
Karo-lina-s [1.5K]
D. adding up purchases and accepting payments has nothing to do with marketing managing.
5 0
3 years ago
Paloma Company establishes a $200 petty cash fund on Jan 1. On January 8, the fund shows $107 in cash along with receipts for th
Tanya [424]

Answer:

(1) establish the fund on January 1,

  • Dr Petty cash fund 200
  •     Cr Cash 200

(2) reimburse it on January 8

  • Dr Postage expenses 39
  • Dr Transportation expenses 12
  • Dr Delivery expenses 14
  • Dr Miscellaneous expenses 28
  •     Cr Cash 93

(3) both reimburse the fund and increase it to $350 on January 8, assuming no entry in part 2.

  • Dr Petty cash fund 150
  • Dr Postage expenses 39
  • Dr Transportation expenses 12
  • Dr Delivery expenses 14
  • Dr Miscellaneous expenses 28
  •     Cr Cash 243

The only difference between part 2 and 3 is that the Petty cash fund is increased by $150, and cash decreases by $243 instead of $93.

6 0
3 years ago
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as
Serga [27]

Answer:

d. Cash 27,000

Floyd, Capital 5,250

Merriam, Capital 1,750

Ramelow, Capital 20,000

Explanation:

First of all we need to calculate the total capital after admission

Total Capital after admission = $50,000 + $23,000 + $27,000 = $100,000

Share of Ramelow = Total Capital x Partnership share = $100,000 x 1/5 = $20,000

Actual Payment made by Ramelow = $27,000

Amount of goodwill paid by Ramelow = $27,000 - $20,000 = $7,000

This goodwill will be distributed between Floyd and Merriam as per their partnership ratio

Share of Goodwill ro Flyod = $7,000 x 3/4 = $5,250

Share of Goodwill ro Merriam = $7,000 x 1/4 = $1,750

3 0
3 years ago
Managing economic exposure is generally perceived to be ____ managing transaction exposure. a. more difficult than b. less diffi
Anit [1.1K]

Answer:

the correct answer is a. more difficult than

Explanation:

Unlike Transaction exposure, economic exposure is difficult to predict and difficult to mitigate in an event of occurence, thus making it harder to manage than transaction exposure.

This is mainly because economic exposure can happen due to various macro economic factors and international political incidents.

6 0
3 years ago
Read 2 more answers
As little as _______ percent of privately owned businesses ever move from the start-up stage to the success stage.
melomori [17]
The answer is D: 6% of these businesses
8 0
3 years ago
Read 2 more answers
Other questions:
  • Raul is a saver. He sets aside $200 per month during his career of 40 years to prepare for a comfortable retirement. He does not
    11·1 answer
  • You just heard that a​ well-known manufacturer in a different industry segment is going to enter your market with a product that
    5·1 answer
  • When will the Social Security fund dry up at its current level?
    11·1 answer
  • Abbott Company purchased $6,500 of merchandise inventory on account. Advent uses the perpetual inventory method. Which of the fo
    6·1 answer
  • A company is going to be performing an initial offering. The offering will be limited to one state. The company has no intention
    5·1 answer
  • Cheese Mart LLC sells cheese to Pizza Palace for $1,500. Pizza Palace uses the cheese to make pizzas, selling them to consumers
    6·1 answer
  • A purchase of supplies on account is recorded in the a.revenue journal b.general journal c.cash payments journal d.purchases jou
    12·1 answer
  • What is the difference between position management and job management.
    14·1 answer
  • Like other corporations, market sales corporation can extend its operations through:_______
    14·1 answer
  • Some economists observe that higher profit rates in large oligopolies stem from the greater efficiency arising from _____ in the
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!