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sineoko [7]
3 years ago
7

In March 2018, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF p

romised to repay the owner of one of these securities $5,000 in March 2043, but investors would receive nothing until then. Investors paid DMF $880 for each of these securities; so they gave up $880 in March 2018, for the promise of a $5,000 payment 25 years later. a. Assuming you purchased the bond for $880, what rate of return would you earn if you held the bond for 25 years until it matured with a value $5,000
Business
1 answer:
kiruha [24]3 years ago
5 0

Answer:

The rate of return is 7.20%

Explanation:

a)  Assuming you purchased the bond for $880, in order to calculate the rate of return you earn if you held the bond for 25 years until it matured with a value $5,000 we would have to calculate the following formula:

Rate of Return = [FV/PV]1/n - 1

Rate of Return= [$5,000 / $880]1/25 - 1 = [5.6818]0.04 - 1 = 1.0720 - 1 = 0.0720, or 7.20%

Rate of Return= [5.6818]0.04 - 1

Rate of Return= 1.0720 - 1

Rate of Return=0.0720, or 7.20%

The rate of return is 7.20%

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Fundamental analysis shows that stock in Cedar Valley Furniture Corporation has a price that exceeds its present value. Group of
barxatty [35]

Answer:

The correct option is :

This stock is overvalued; you shouldn't consider adding it to your portfolio.

Explanation:

The stocks that are in cedar valley corporation has a price that exceedes its present value from this statement the first given option doesn't justify as the stocks rates are not undervalued.

Now, in the second option its again given that the stock will be overvalued which is true but it should be added to the portfolio is not correct. so, this option is not considered.

In the third option it mentions that stock is overvalued which is the correct option and also that it shouldn't be added in portfolio.

And the last one states that its undervalued which restricts the option at this point only.

So, third option is correct.

5 0
3 years ago
Florence Inc. lost an entire plant due to an earthquake on May 1, 2018. In preparing its insurance claim on the inventory loss,
Dima020 [189]

Answer:

$483,000

Explanation:

The computation of the estimated inventory on May 1, 2018, is shown below:

= Inventory as on Jan 1, 2018 + purchase of inventory + sales on inventory × gross profit rate - sales on inventory

= $470,000 + $895,000 + $1,260,000 × 30% - $1,260,000

= $470,000 + $895,000 + $378,000 - $1,260,000

= $483,000

By applying the above formula we can get the ending estimated inventory

7 0
3 years ago
In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that
rjkz [21]

Answer:

1) disagree with the protesters because these practices will help make both rich and poor countries richer.

Explanation:

Free trade and foreign direct investments should make increase the wealth of both poor countries and rich countries. This rarely happens due to one main problem, corruption in poor countries. A lot of people are angry at foreign multinational corporations that have excessive powers on poor countries and they also earn extremely high profits, but it is not only the fault of the multinationals, it is also the fault of the poor countries' leaders.

No corporation can simply go to another country and claim everything for themselves, ti doesn't work like that. Generally corporations have very deep pockets and they simply bribe a president, a secretary of something, a few more people including congressmen and magically they purchase the purchase assets at below market prices. This repeats again and again everywhere around the world, with a very few exceptions.

For example, Ireland was extremely poor and when it joined the European Union it decided to host several multinationals and it has turned into a developed country since then. Chile is another successful story, and it was a dictator that opened Chilean economy to foreign investment.

The problem with most poor countries is that their corrupt leaders benefit themselves and not the country.

6 0
3 years ago
True or false: if you wanted to create a poster that displayed exactly the same information, and could be reproduced in thousand
e-lub [12.9K]
The above statement is false.
<span>if you wanted to create a poster that displayed exactly the same information, and could be reproduced in thousands of copies, mono-printing would not be a good process to use because in mono-printing, there is a print of a unique image and printed only once.
</span>There are many printing methods used for printing posters.
4 0
3 years ago
The Gomez Trust is required to distribute $80,000 annually, split equally between its two income beneficiaries, Lara and Byron.
Maru [420]

Answer:

A.$30,000

B.$30,000

C.First-tier of $30,000 to both beneficiarie

Explanation:

Gomez Trust

a. (1/2×DNI $60,000)

=$30,000

b.$30,000

c.First-tier of $30,000 to both beneficiarie in which First-tier distributions can be said to be those distributions which are often composed of trust accounting income that is required to be distributed currently.

Hence there are no second-tier distributions because the tier system only accounts for the annual DNI amounts, and all of the $60,000 DNI are been distributed on the first tier.

6 0
3 years ago
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