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mote1985 [20]
3 years ago
9

g If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth:1)A)nothing today)less than $

500,000 today, but a positive amount.C)$500,000 today.D)more than $500,000 today.E)some amount, but whether it is more, less or the same as $500,000 cannot be determined.
Business
1 answer:
galben [10]3 years ago
5 0

Answer:

b)less than $500,000 today, but a positive amount.

Explanation:

By the virtue of the concepts of compounding and discounting, we understand that $1 today is worth more that $1 in the future.

Where Pv = Present value

Fv = Future value

r = discount rate

t = time

Fv = Pv ( 1 + r)^t

As such If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth less than $500,000 today, but a positive amount.

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That seems true if its a true or false question
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Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

=  Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

or

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

or

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

or

0.04825 = 0.07125 × weight

or

weight = 0.6772

also,

weight = \frac{\textup{Equity}}{\textup{Debt + Equity}}

or

\frac{\textup{1}}{\textup{weight}}  = \frac{\textup{Debt+equity}}{\textup{Equity}}

or

\frac{1}{0.6772} = \frac{\textup{Debt}}{\textup{Equity}}  + 1

or

1.4766 = \frac{\textup{Debt}}{\textup{Equity}}  + 1

or

\frac{\textup{Debt}}{\textup{Equity}}  = 0.4766

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3 years ago
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Gwar [14]
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Montano1993 [528]

Answer:

a) true

Explanation:

The Enterprise resource planning system is a single database that helps to collect data and feed into applications with a motive to support the various business activities like - purchases, production, distribution, sales, marketing, finance, human resource, information technology, etc

The aim of this system is to conduct each and every business activity in an effective and efficient manner so that each one can share the database so that tracking could be done that helps to reduce the time and cost.

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Marketing benefits the organization, its stakeholders, and society at large by <u>creating, communicating, delivering, and exchanging</u> offerings that have value for customers.

<h3>What is marketing?</h3>

Marketing is a process filled with many activities to ensure customer value and organizational profitability.

Marketing involves the following marketing mix:

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Marketing does not start with advertising or creating awareness of a product or service in the mind of customers.  It begins with product design, production, and delivery, and ends with customer service.

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