Answer:
A) A high interest rate & long time period
Explanation:
A high interest rate means that your principal amount is earning a higher return when deposited in a savings account. The interest amount when compounded frequently like every month, it also earns interest on it as well as the original amount invested. This effect is called compounding. On the other hand, a long time period of investment means that you have a longer time horizon over which your principal earns interest. For example if you start saving when you are 18 years old and wants to retire at 68 years old, you will have 50 years worth of interest earned which is longer investment horizon than when you start saving at 40 years of age.
False, forgot the payment or goods exchange part.
Answer:
Net cash from investing activities (40,000)
Explanation:
<em>The investing activities are those that pertain to the purchase and sales of non-current assets and marketable securities.</em>
<em>Example of such includes the sales and purchase of property plant an equipment. Therefore, the only item to be considered here is the purchase of equipment.</em>
$
Investing activities
Equipment purchase <u>(40,000)</u>
Net cash from investing activities (40,000)
Answer:
Explanation:
A. Take a loan from Bank One at 5.5% and save the money in Bank Enn at 6%.
B. Bank One would experience a surge in the demand for loans, while Bank Enn would receive a
surge in deposits.
C. Bank One would increase the interest rate, and/or Bank Enn would decrease its rate.
Answer:
B.37.50
Explanation:
Calculation for what should be the value of the stock
First step is to calculate g
g = .25 × .20
g= .05
Second step is to calculate D1
D1 = $3(1 - .25)
D1= $2.25
Last step is to calculate what should be the value of the stock
P0 = $2.25/(.11 - .05)
P0 = $37.50
Therefore what should be the value of the stock is $37.50