Answer:
A. the present value of the future dividends the company pays.
Explanation:
The net present value (NPV) of a project can be defined as the difference between present value of cash-inflow into a project and that of cash-outflow over a specific period of time. Thus, it is simply the value of all cash-flows for a project with respect to its life span.
The underlying assumption of the dividend discount model is that a stock is worth the present value of the future dividends the company pays.
Generally, all financial assets or securities can be securitized i.e turned into a tradable item that can be used to generate money for a potential investor or the owner of the financial asset.
For example, a mortgage backed security can be used as securitization.
Answer:
B. Cash 58,800 Accounts Receivable 58,800
Explanation:
Sale of 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days
Is Recorded as
Trade Receivable $ 58,000 (debit)
Revenue $58,000 (credit)
Being Recognition of an Asset - Trade Receivable and Recognition of Revenue less sales discount
On payment of full payment transaction is recorded as
Cash $ 58,000 (debit)
Trade Receivable $58,000 (credit)
Being De-recognition of Asset - Trade Receivable and Recognition of Revenue
Answer:
Neither I nor II are correct
Explanation:
I. The nominal interest rate is also referred to as the APR or the stated rate.
This statement is not true because nominal interest rate is different from the annual percentage rate (APR).
A nominal interest rate is basically the interest rate is charged by banks or other financial institutions on a loan, and other expenses on the loan are not added to the interest when interest rate is being determined.
On the other hand, APR is nominal interest rate plus other expenses incurred in other to get the loan.
Therefore, nominal interest rate is usually lower than the APR. This makes them to be different.
II. You should use the nominal interest rate to compare two alternative investments/loans with different compounding periods.
This statement is not correct.
The interest rate is used to to compare two alternative investments/loans with different compounding periods is the effective interest rate.
The effective interest rate is the actual amount of interest rate that a lender or an investor earned on his loan, investment because of compounding that is done during a specific period of time. The effective annual interest rate is the interest rate that is employed to compare different investment products because, unlike other interest rate, compounded interest are estimated differently by it.
Therefore, Neither I nor II are correct.
I wish you the best.
Answer:
economics a situation in which the market demand for a commodity is greater than its market supply, thus causing its market price to rise.
Explanation:
this is the definition. hope this helps.
