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Akimi4 [234]
3 years ago
7

A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) of th

is perpetuity on the date that it is purchased, given that the interest rate is 11%
Business
1 answer:
Oksana_A [137]3 years ago
8 0
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Alex withdrew $500,000 from an account that paid 5 percent annual interest and used the funds to purchase real estate. After one
oksano4ka [1.4K]

Answer:

a) 25,000

Explanation:

The computation of the economic profit is shown below;

Economic profit is

= Revenue - Explicit cost - Implicit cost

= $550,000 - $500,000 - $500,000 × 5%

= $550,000 - $500,000 - $25000

= $25,000

Hence, the economic profit on this deal was $25,000

Therefore the correct option is a.

We simply applied the above formula so that the correct value could come

And, the same is to be considered  

7 0
3 years ago
Three stocks have share prices of $37, $115, and $85 with total market values of $540 million, $490 million, and $290 million, r
BaLLatris [955]

Answer:

Index Value= 39

Explanation:

Index Value=(37+115+85)/3=39

5 0
3 years ago
Read 2 more answers
Powell Company had the following errors over the last two years: 2019: Ending inventory was overstated by $58,500 while deprecia
erastovalidia [21]

Answer:

-$27,800

Explanation:

When the inventory closing balance is overstated, the cost of goods sold is understated and as such the net income which is posted to the retained earnings will be overstated . When an expense is overstated, the net income is understated and so is the retained earnings.

The net overstatement of inventory across the two periods

= $58,500 - $10,500

= $48,000

The net overstatement of depreciation across the two periods

= $24,800 - $4,600

= $20,200

Adjustments to retained earnings

= - $48,000 + $20,200

= -$27,800

7 0
3 years ago
O
tino4ka555 [31]
What is the question? Lol
7 0
3 years ago
Stock market prices plunged tremendously in 1929, contributing to the Great Depression as the AD curve shifted greatly to the le
Talja [164]

Answer:

b. expectations that stock prices would fall further could shift the AD curve further to the left.

Explanation:

The AS/ AD model stated the aggregate supply and aggregate demand model which stated level of prices and its output by maintaining the relation between the supply and demand

As in the given situation, it is mentioned that the aggregate supply of short run decline and that brings deflation and it moves the economy back to the output i.e potential. It impacts the expectation of stock prices would result in declines and further it shifted the AD curve to the left side

Hence, the correct option is B.

6 0
3 years ago
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