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
zubka84 [21]
3 years ago
10

Why is there a time value of money (cash received today is valued more than cash received a year fromnow)?a. Interest rates are

greater than zero.b. Inflation.c. Consumption needs.d. risk.e. a and b are correct.f. c and d are correct.
Business
1 answer:
Simora [160]3 years ago
7 0

Answer:

<u>A and B are correct</u>

Explanation :

  • The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
  • Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
  • It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
  • FV = PV x [ 1 + (i / n) ] (n x t)
You might be interested in
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the f
IrinaK [193]

Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20

Explanation:

Using the Gordon growth model, you can calculate the expected dividend. The formula is:

Price = Expected dividend/ (expected return - expected growth)

Stock A expected dividend

25 = D/ (10% - 7%)

D = 25 * 3%

= $0.75

Stock B expected divided

40 = D / (12% - 9%)

D = 40 * 3%

= $1.20

Option A, C and B are therefore wrong.

Option E is correct.

5 0
3 years ago
Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
2 years ago
Processing clerks work in what?
AveGali [126]
Processing clerks work in Warehouses
Your answer is D.

They usually regulate incoming and outgoing packages <span />
6 0
3 years ago
Read 2 more answers
Over the last ten years productivity grew faster in Oceania than in Freedonia and the population and total hours worked remained
Anvisha [2.4K]

Answer:

it's d. All are correctamundo

8 0
3 years ago
Dividend Company is a are company that as been profitable and growing for a long time. In the most recent shareholders report, t
Vlad1618 [11]
Dividends= $ that people who bought stock in a company receive. Generally, these increase when the company is doing well.
Stock= becomes more expensive the better a company is doing and has been doing for a while because it is in higher demand.

I predict that the company's stock will rise because it is in higher demand based upon it's consistently doing well. Make sense?
4 0
3 years ago
Other questions:
  • According to the leadership grid developed by Blake and Mouton, which management style reflects moderate concern for production
    11·1 answer
  • In figuring out all the ways that you can come up with the money you need to buy the used car you saw advertised in the newspape
    15·1 answer
  • What recently happened in the automobile industry that exemplifies the idea that "we need to value more the creation of ideas in
    5·1 answer
  • French and german managers tend to use work-centered and _____ approach to leadership.
    8·1 answer
  • Birk Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31.
    15·1 answer
  • Which statement about stakeholders is BEST?
    13·1 answer
  • Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
    14·2 answers
  • How do my educational choices connect with my long-term goals and vision for life?
    5·1 answer
  • MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $90,000
    9·1 answer
  • A new study discovers the health benefits of eating fish regularly. At the same time, some consumers decide to become vegetarian
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!