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PilotLPTM [1.2K]
3 years ago
7

ou have just purchased a four-month, $630,000 negotiable CD, which will pay a 4.5 percent annual interest rate. a. If the market

rate on the CD rises to 5 percent, what is its current market value? b. If the market rate on the CD falls to 4.25 percent, what is its current market value?
Business
1 answer:
Serjik [45]3 years ago
8 0

Answer:

Explanation:

first will need to calculate the Fv future value of this CD

Fv = Pv ( 1 + R )^n n = 4 /12 = 0.333333,  r, rate = 4.5/100 = 0.045

Fv = $ 630000 ( 1+ 0.045)^0.33333 = $ 639311.69

a) the current value at 5 % Pv = Fv / ( 1+r)ⁿ

Pv = $ 639311.69  / ( 1.05)^0.3333 = $ 628998.41

b) the current price at 4.25% = $ 639311.69  / ( 1.0425)^0.3333 = $ 630503.20

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Marigold Corp. has the following inventory data: July 1 Beginning Inventory 31 units at $16 $496 7 Purchases 109 units at $16 17
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Answer:

The correct answer is A.

Explanation:

Giving the following information:

July 1: Beginning Inventory 31 units at $16 $496

July 7: Purchases 109 units at $16 $1744

July 22: Purchases 16 units at $17 $272

A physical count of merchandise inventory on July 30 reveals that there are 39 units on hand.

FIFO (first-in, first-out)

Units sold= (31 + 109 + 16) - 39= 117

COGS= 31*16 + 86*16= $1,872

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3 years ago
A corporation's legal capital:
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Answer: d. Is established to protect the corporation's creditors.

Explanation:

A corporation's legal capital is the part of a company's equity that absolutely cannot be allowed to leave the company. It is illegal to distribute them as dividends or any other means.

The purpose of this is to ensure that the creditor's rights to assets in the company are protected in the event that some mishap should befall the company.

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Katen [24]

Business opportunity........

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Dan sells newspapers. Dan says that a 8 percent increase in the price of a newspaper will decrease the quantity of newspapers de
ivann1987 [24]

Answer:

For Dan, the demand is price inelastic

Explanation:

One of the factors tat affect the quantity demand for a product is the price of the product. According to the law of demand, at lower price more quantity of a product would be purchased than at a higer price, all other this being being equal.

Price elasticity of Demand (PED)

The extent to which a change in price will cause a change in the quantity demand for a product is called the price elasticity of demand. It measures the degree of responsiveness of quantity demand to a change in price.

It is calculated as

PED =% change in quantity demand / % change in price.

For Dan Newspaper , the price elasticity of demand

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If the PED is greater than 1, the demand is price elastic

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For Dan, the demand is price inelastic

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3 years ago
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scoray [572]

Answer:

monitoring and controlling

Explanation:

The five stages in the project management process are:

  1. Project initiation
  2. Project planning
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