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Evgesh-ka [11]
3 years ago
12

Which of the following statements is FALSE?A. The effect of compounding is great over short time periods, but then it begins to

decline as the horizon grows.B. Moving cash flows to the left on a time line is called discounting, and values are additive at any one point in time.C. Future value refers to the amount of money an investment will grow to over some period of time at some given interest rate.D. To estimate the present value of future cash flows, the discount rate should be adjusted for both the timing or maturity of that cash flow and the inherent risk of that cash flow.
Business
1 answer:
Ede4ka [16]3 years ago
6 0

Answer:

The false statement is letter "A": The effect of compounding is great over short time periods, but then it begins to decline as the horizon grows.

Explanation:

Interest on interest or Compound Interest is the money accrued out of an interest rate plus all the interest earned accumulated on a certain period of time. The compound interest can be calculated on a daily, monthly or yearly basis. If the frequency of the compound interest is set in shorter periods of time, it will be more beneficial for the investor.

In that sense, option letter "A" is false since interest on interest does not decline over time but increases.

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What is the most likely effect of the development of XBOX with DVD capabilities on the DVD player industry? a. ​decreased price
Shkiper50 [21]

Answer:

The correct answer is letter "B": ​Increased price elasticity of demand for the DVD player industry because XBOX are substitutes.

Explanation:

Price elasticity of demand reflects the changes in quantity demanded for a good or service as a result of changes in price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1) the demand is elastic.<em> It means a minimum change in price has a major impact on the quantity demanded volume. </em>

Thus, <em>if XBOX implements DVD features, DVD players will face an increase in their price elasticity of demand because changing DVD players' prices could change their quantity demanded by far because consumers will prefer purchasing an XBOX which is a substitute.</em>

7 0
3 years ago
Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecti
Anika [276]

Answer:

With respect to the employment-at-will doctrine, this is "An exception based on public policy"

Explanation:

Under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination violates an explicit, well-established public policy of the state. For example, in most states, an employer can't terminate an employee for filing a workers' compensation claim after being injured on the job, or for refusing to engage in illegal activity at the request of an employer.

Public policy may be found in a state constitution, statute, administrative rule, or other state policy. The public-policy exception is the most commonly accepted exception, recognized in the vast majority of states.

4 0
3 years ago
The Nixon Corporation’s common stock has a beta of 1.3. If the risk-free rate is 4.4 percent and the expected return on the mark
Xelga [282]

Answer:

11.68%

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 4.4% + 1.3 × (10% - 4.4%)

= 4.4% + 1.3 × 5.6%

= 4.4% + 7.28%

= 11.68%

The (Market rate of return - Risk-free rate of return)  is also called market risk premium

8 0
2 years ago
Other things the same, which bond would you expect to pay the lowest interest rate?
Elis [28]

Answer:

d) a bond issued by the U.S. government

Explanation:

A bond issued by the US government will be expected to pay the lowest interest rate because the default risk is almost 0 with the US government which means that it is a risk free investment for the lender. The investor will be willing to lend money to US government at the lowest interest rate out of all the options because it is the safest investment therefore the investor's required rate of return is the lowest for US government.

3 0
3 years ago
To determine a product selling price based on the total cost method, management should include: Multiple Choice Total product an
Free_Kalibri [48]

If one wants to determine the selling price of a product using the total cost method, the management should use Total product costs plus a markup.

<h3>What is total cost method?</h3>

When using the total cost method, the company takes into account the full cost of producing the good in question. This includes total product cost only.

A markup is then added to the total cost to find a suitable selling price that allows for a projected level of profit.

Find out more on the total cost method at brainly.com/question/6480601.

4 0
2 years ago
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