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Troyanec [42]
3 years ago
8

A perpetuity has a PV of $ 29 comma 000. If the interest rate is 7​%, how much will the perpetuity paid every​ year

Business
1 answer:
Lady bird [3.3K]3 years ago
7 0

Answer:

The perpetuity payment per year was $2030

Explanation:

A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,

PV of Perpetuity = Cash Flow  /  r

Where,

  • r is the required rate of return

As we already know the present value of perpetuity and the required rate of return, we can input these values in the formula to calculate the annual perpetuity payment or cash flow.

29000 = Cash Flow / 0.07

29000 * 0.07  =  Cash Flow

Cash Flow = $2030

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2. In order to expedite basic performance improvement team functioning, the team should: A. Establish ground rules. B. Perform f
olya-2409 [2.1K]

Answer:

2-  A. Establish ground rules

3-  D. Top management’s requirements.

Explanation:

2- An effective team is a well-integrated team, where the flow of information occurs effectively and where each member feels equally respected and an important part of the team, being able to contribute with ideas and feedback.

Therefore, for there to be cohesion and improvement of the team's performance, it is necessary to establish basic rules, to guide the behavior and actions of members and for there to be equality among all, in order to avoid conflicts and organize work.

3- to guide the process of the performance improvement team, the most important alternative is the requirements of senior management.

It is the managers who will coordinate, monitor and guide the action plans and develop the fundamental requirements for the execution of the business actions that will lead to the fulfillment of the objectives and goals.

8 0
3 years ago
Gold Peak is a brand of iced tea introduced by Coca-Cola North American and intended to taste like the tea ""Mom used to brew.""
Lostsunrise [7]

Answer:

The correct answer is introductory.

Explanation:

In short, it is the stage where the conception, definition and experimental period of the product is fixed, studies say that more than 70% fail to launch to the market. It is characterized by:

  1. Low sales volume
  2. Great technical, commercial and communication investment.
  3. Great effort to fine-tune the manufacturing means.
  4. Difficulties to introduce the product in the market.
  5. Low saturation of your potential market.
  6. Few bidders.
  7. Special dedication of the sales team.

In summary, this phase is characterized by a negative profitability due to the great resources that are necessary to manufacture, launch and refine the product, compared to the sales volume achieved.

7 0
3 years ago
Which program provides lump-sum compensation and health benefits for eligible Department of Energy nuclear weapons workers injur
pickupchik [31]

Answer: Energy Employees Occupational Illness Compensation Program (EECICP)

Explanation:

Much like private companies, the Federal government is also required to insure its workers and this is regulated under the Office of Workers' Compensation Programs (OWCP). There are several compensation programs but the relevant one here is the EECICP.

The EECICP is for federal employees in the Department of Energy as well as agencies related to them. This also includes contractors and subcontractors. Under this program, eligible workers who got injured are entitled to a lump-sum compensation as well as health benefits. If the worker dies as a result of the injuries however, a lump-sum might go to their survivors instead.

8 0
3 years ago
What are two advantages and two disadvantages of the informal economy
AnnyKZ [126]

Answer:

Advantages of Informal Sector employment:

Some employers pay well because company owners do not have many tax obligations. Employee effort is directed towards achieving profit rather than satisfying irrelevant routines.

There can be a close and direct relationship with the employer, therefore making it easy to get permission when in need of time off.

You are saved the hassle of paying Pay As You Earn tax.

There’s no red tape when it comes to dealing with personnel issues which are expressly handled either by the employer him/herself, or a senior manager.

Sometimes employment is done on the spot with little emphasis on attending lengthy job interviews and countless aptitude tests.

Sometimes one is employed because of one’s personal relationship with the employer rather than on merit.

Disadvantages of Informal Sector employment:

Little or no job security.

Unprotected by labour laws.

Odd working hours.

No pension, insurance or health insurance scheme.

Summary dismissals.

Difficult to make any savings due to low wages.

A brief illness or injury or injury can mean no financial means to survive.

Explanation:

4 0
3 years ago
The ABC Company expects stock prices to decrease. The current stock price is $96. The company purchases a put option, with exerc
Talja [164]

Answer:

Payoff = $2 per share.

Explanation:

In a put option, the long (the party that buy the put) will have gain on the option when the underlying asset price is lower than the excercise price of that asset <em>(imagine the advantage that you can sell a chicken at $12 when it market price of is is only 10)</em>.

Because the stock price is $91, lower than exercise price of 93, so the company should exercise the put. Total payoff per share is 93 - 91 = $2.

<em>Note: We dont include premium to buy the put here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>

6 0
3 years ago
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