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Anton [14]
3 years ago
9

Property taxes in a particular district are 4% of the purchase price of a home every year. If you just purchased a $250,000 home

, what is the present value of all the future property tax payments.
Business
1 answer:
avanturin [10]3 years ago
5 0

Answer:

Assume the interest rate used for discounting is 5%.

Then, the present value of all the future property tax payments is $200,000.

Explanation:

We have the annual property tax payment is calculated as: Purchased price * tax rate = 250,000 * 4% = $10,000.

The tax payment will form a perpetuity of $10,000 each ( that is: C = 10,000). We apply the formula for calculating present value of perpetuity with assumption that discount rate is 5% to come up with the answer as below:

PV = C/i = 10,000/5% = $200,000.

So, the answer is $200,000.

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One of the disadvantages of issuing stock is that
n200080 [17]

One of the disadvantages of issuing stock is the fact that it dilutes the earnings for shareholders.

The more shares there are, the less earnings.  

8 0
3 years ago
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Jean often accompanies her friends on shopping trips. While shopping, she cannot resist the temptation to buy products on sale a
djverab [1.8K]

Answer:

State orientation

Explanation:

The state orientation is the term which is defined as the inability of the person to regulate the behavior, emotions and thoughts. In short, it means that the individuals or the person unable to modify their state of mind, their uncertainty, dejection, anxiety and confusion.

Under this scenario, Jean who whenever accompany their friends on shopping, she could not able to resist herself from buying the products on sales and spend a lot more than budget, so, it could be concluded that she is state orientated.

7 0
3 years ago
Talks-A-Lot, Inc. sells cell phones to customers and expects that 5% of phones sold will be returned for repair under its warran
ivann1987 [24]

Answer:

Warranty liability $2,128

Explanation:

680 phones sold x 5% x $76 per repaired phone = $2,584 total warranty liability

6 phones were repaired during the year x $76 =  $456

remaining warranty liability = total estimated liability - money spent repairing phones during the year = $2,584 - $456 = $2,128

total outstanding warranty liability = $2,128

Since phone warranties last less than a year, the full amount should be recorded under current liabilities.

5 0
3 years ago
Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.
lyudmila [28]

Answer:

1.29375

Explanation:

Data provided in the question:

Total investment = $10,000

Number of different common stock = 8

Portfolio's beta = 1.25

Beta of a stock sold = 1.00

Beta of the replacement stock = 1.35

Now,

Change in portfolio beta = weight × (change in security beta)

also,

change in security beta

= Beta of the replacement stock - Beta of a stock sold

= 1.35 - 1

= 0.35

and,

Weight = Beta ÷ Number of different common stock

= 1 ÷ 8 = 0.125

Therefore,

Change in portfolio beta = 0.125 × 0.35

= 0.04375

thus,

New portfolio beta = Portfolio's beta + Change in portfolio beta

= 1.25 + 0.04375

= 1.29375

3 0
3 years ago
Do all markets function the same way around the world?
Alika [10]
Well honestly, markets are how people function; markets don’t function, people do.

We speak of the “functioning of markets” as a shorthand, a figure of speech because abstracting human behavior to the behavior of a system is useful, as long as we don’t forget that it is an abstraction and not a real thing.

This is the same when we speak of “the roar of the crowd” even though people roar, not crowds. It just takes too long to write “the noise of the people in the crowd roaring at the same time”.

It is easier to write “the functioning of the market” than “what happens as people interact with each other.” Markets are the interactions of people .

So, do people behave and interact the same way around the world? Obviously not. Are the results the same? Yes they are: people serve each other and, in the process, create wealth. But both wealth and service vary by culture.

If that makes sense... anyway, have a nice night!
~Brooke❤️
7 0
3 years ago
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