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FrozenT [24]
3 years ago
13

Jude wants to receive $1,100 at the beginning of each of the next eight years. If his opportunity cost rate is 9 percent compoun

ded annually, how much must he deposit in an account today? Use a financial calculator to make the calculation.
Business
1 answer:
alukav5142 [94]3 years ago
3 0

Answer:

$6,636.25

Explanation:

The amount which will be deposited by the Jude today in order to receive the $1,100 in the beginning of each of next eight years shall be determined through present value of annuity formula, which is given as follow:

Amount to be deposited today=R+R[(1-(1+i)^n-1)/i]

Where

R=amount to be received at start of year=$1,100

i=interest rate compounded annually=9%

n=number of years involved=8

Amount to be deposited today=1,100+1,100[(1-(1+9%)^7/9%]

                                                   =$6,636.25

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7 0
3 years ago
Glavine Company issues 6,000 shares of its $5 par value common stock having a fair value of $25 per share and 9,000 shares of it
almond37 [142]

Answer:

                                                                                        $

Market value of common stocks   (6,000 x $25)  = 150,000

Market value of preferred stocks (9,000 x   $20) = 180,000

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Proceeds allocated to common stocks

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= $141,818

The correct answer is B

Explanation:

The market value of the company is the aggregate of market value of common stocks and market value of preferred stocks.The market value of each stock is equal to number of each stock outstanding multiplied by market price per share. Thus, the proceeds allocated to common stock equals the market value of equity divided by market value of the company multiplied by the lump sum.

4 0
3 years ago
​Currency markets operate under a system of _____ in which the prices of different currencies move up or down based on the deman
neonofarm [45]

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Floating currency regimes mean that lengthy-term currency price movements represent relative economic power and country-to-country rate of interest differences.

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4 0
3 years ago
You are planning a store on a large lot. Your budget only allows for 800 linear feet of walls. What is the maximum square
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Answer:

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Explanation:

The given value is:

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= 800 ft

Sides,

= 4

Now,

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= \frac{800}{4}

= 400 \ ft

The max footage of square will be:

= 400\times 100

= 40,000 \ sq/ft

8 0
3 years ago
Question help what is the definition of​ monopoly?
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8 0
3 years ago
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