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Rus_ich [418]
4 years ago
14

Which statement is true? a. All else equal, an ordinary annuity is more valuable than an annuity due. b. All else equal, a decre

ase in the number of payments increases the future value of an annuity due. c. An annuity with payments at the beginning of each period is called an ordinary annuity.d. All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity. e. All else equal, an increase in the number of annuity payments decreases the present value and increases the future value of an annuity.
Business
1 answer:
jenyasd209 [6]4 years ago
7 0

Answer:<u><em> All else equal, an increase in the discount rate decreases the present value and increases the future value of an annuity. </em></u>

Explanation:

This is so, as increasing the interest rate will increase factors affecting the future value.

∴ With an increase in the discount rate , there will be a decreases in factors affecting the present value. This is because a higher interest rate denotes that in present terms we would have to keep the reduction aside to earn a specified amount in the future.

In an ordinary annuity, payments are received at the end of the time period stated. Payments are either received or made at the beginning of the time period.

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The difference between zero profit and zero economic profit is that:
Marianna [84]

Answer:

The correct answer is letter "A": economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero profit.

Explanation:

Normal profit is an economic term that means zero economic profits. To an economist, this is normal since total revenue equals total cost which includes both explicit and implicit costs. It differs from the accounting profit or zero profits since the latter does not take into consideration implicit cost.

8 0
3 years ago
Compute the stock turnover for a product that has sales of 350 units and an average of 70 units in inventory.
Harrizon [31]

B. 5

To compute stock turnover divide Sales/Average inventory

350/70= 5

Stock turnover is the amount of times inventory is sold in a given time period.

4 0
3 years ago
Suppose a firm has a retention ratio of 40 percent and net income of $5.5 million. how much does it pay out in dividends? (enter
poizon [28]

Total sales = $200,000. Net income = $20,000. Dividend payout ratio = 30%. Operating cash flow = $40,000. Price per share = $100. Shares outstanding = 1,000.

<h3>What is Dividend payout ratio?</h3>

Investors can get a sense of a company's dividend payout ratio by comparing it to the amount of money it maintains on hand for growth, debt repayment, and cash reserves.

Using the data available at the bottom of a company's income statement, this ratio can be determined quickly. The dividend yield, on the other hand, contrasts the dividend payment with the stock price of the company at the time of the comparison.

How much is paid out in dividends can be determined using the dividend payout ratio.

This computation enables businesses to determine how much cash is available (after dividends are paid) for debt repayment or reinvested.

The income statement of a corporation is used to compute this ratio.

To learn more about Dividend payout ratio from the given link:

brainly.com/question/16102531

#SPJ4

5 0
2 years ago
The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, spec
Elza [17]

Answer:

True

Explanation:

Storage warehouses are used to store items for short periods of time while distribution warehouses are much bigger facilities that are used to gather and redistribute products.

Distribution warehouses are usually very big and can store a lot of products, while storage warehouses are usually a big facility that is divided into smaller units, each smaller unit serves as a storage warehouse. Storage warehouses are used to store more specific items while distribution warehouses can handle different types of goods.

4 0
4 years ago
Give a concrete example of how the type of college you choose can impact your total costs.
Zanzabum

Answer:

Because you chose to go to college instead of working, your opportunity cost is actually the sum of your college expenses plus the money you could have earned had you chosen not to work.

Explanation:

There are five main categories of expenses to think about when figuring out how much your college education is really going to cost: tuition and fees, room and board, books and supplies, personal expenses, and transportation. You can control some of these costs to some extent.

7 0
3 years ago
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