1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GuDViN [60]
3 years ago
9

What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 4.3%. Inve

stments with similar risk are offering an 8% annual return.
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
6 0

Answer:

PV= $2,702.70

Explanation:

Giving the following information:

Cash flow= $100

Growth rate (g)= 4.3%

Discount rate (i)= 8%

<u>To calculate the present value of the perpetuity, we need to use the following formula:</u>

PV= Cf / (i - g)

PV= 100 / (0.08 - 0.043)

PV= 100 / 0.037

PV= $2,702.70

You might be interested in
Which of the following best summarizes the critical skills in real estate brokerage?A. Communications, market knowledge, mathema
skad [1K]

Answer:

D. Listing, marketing, facilitating transactions, and managing information

Explanation:

The real estate brokers helps in facilitating the following activities:

Listing - They help in listing out the best options for the buyers

Marketing - The brokers representing the developer ( i.e the seller ) markets their product which is the real estate property

Facilitating transactions - They help the buyers and sellers for the ease in transaction  by being a mediator between the seller and the buyer.

Managing information - They manage the information related to the products and the information of the buyer so as to have an hassle free transaction.

4 0
3 years ago
GAWAIN 3
Ivahew [28]

Explanation:

<h2><em><u>Heto na ang magkapatid, nag-uunahang pumanhik.</u></em></h2><h2 /><h2><em><u>Heto na ang magkapatid, nag-uunahang pumanhik.Sagot: Mga paa</u></em></h2>
8 0
3 years ago
Jason's Outdoors manufactures two products: snow skis and water skis. Jason's managerial accountant suspects that product cost d
Ainat [17]

Answer:

Jason's accountant should consider a single plantwide rate to correct the problem.

Explanation:

If a company manufactures products that consume factory overhead costs in different ways, a single plantwide rate may not accurately allocate factory overhead costs to the products and cause cost distortions. Cost distortions can cause companies to lose sales and make incorrect decisions on expanding production.

4 0
3 years ago
Assume that the company that John and Tina work for wants to give the $50 million to the political campaigns. Which of the follo
sdas [7]

Answer:

The correct answer is (d)

Explanation:

The first amendment has given political parties the right to speak and do political campaigns, and it had restricted government to stop them. Overall, the first amendment right is protecting political speeches and political campaigns. So, yes the first amendment right has demoted all the limits which restricted political parties to get funds from corporations.

4 0
3 years ago
GDP is the market value of: A. Resources (land, labor, capita, and entrepreneurship) in an economy in a given year B. All final
frutty [35]

Answer:

B) All final goods and services produced in an economy in a given year

Explanation:

That's the definition of GDP, gross domestic product. By virtue of the name, it's the total product (output) of a given economy. It's measured through the values of all final goods and services, so as to not count the same good or service twice.

3 0
3 years ago
Other questions:
  • Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The
    13·1 answer
  • "what creates the basis for a simpler compensation system that de-emphasizes structure and places greater importance on flexible
    11·1 answer
  • Scenario
    5·1 answer
  • Ceteris paribus, based on the aggregate demand curve, if the price level _______ the quantity of real output _______ increases.
    12·1 answer
  • 3. If the interest rate at the bank for a savings account is 0.03%, how much money would you need to leave in the account for on
    6·1 answer
  • The more management relies on formal, collective, sequential, fixed, and serial socialization programs and emphasize divestiture
    9·1 answer
  • : Identify your top four work values. Work values are the elements of
    10·1 answer
  • Will award brainliest for correct answer
    6·1 answer
  • Lolita’s team meets every Tuesday morning. Lolita always brings doughnuts to these meetings, and she always starts the meeting b
    14·2 answers
  • A customs union is put in place to Blank______.Multiple choice question.create a separate external trade policy for each member
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!