Why does the government plan its financial expenditure framework for a period of five years?

Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad

Paul [167]

Answer:

the answer for the first question is $166667.

the answer for the second question is $210526

the answer for the third question is An inverse.

Explanation:

given information that i will invest in a $10000 scholarship that will pay forever.

the interest rate charged is 6.00% per annum therefore this is a perpetuity present value problem where there is streams of income forever therefore we use the formula :

Pv of perpetuity= Cf/r

where Cr is the cash flows payed by the single investment forever in this case $10000 then r is the interest rate of the investment amount which is 6% in this case.

Pv of Perpetuity= $10000/6%

=$166667 therefore i must invest this amount to get the scholarship running with streams of $10000 forever.

in the second problem if now the interest rate is changed from 6% to 4.75% then the amount to be invested would be :

Pv of perpetuity = $10000/4.75%

=$210526 therefore this is the amount to be invested for a forever $10000 stream of incomes for a scholarship.

the relationship is indirect cause as the interest rate decreases the present value of the perpetuity that must be invested increases.

3 0

3 years ago

Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends fo

solong [7]

Answer:

The correct solution is "$42.94".

Explanation:

The given values are:

D0 = 4

Ks = 15%

As we know,

⇒ $g = (1-Div \ payout \ ratio)\times ROE$

$=(1-60 \ percent)\times 13 \ percent$

$=5.20 \ percent$

By using the Gordon Model, we get

⇒ $P0=Do\times \frac{(1+g)}{(Ks-g)}$

$=4\times \frac{ (1+5.20 \ percent)}{(15 \ percent-5.20 \ percent)}$

$=42.94$ ($)

6 0

2 years ago

The total overhead variance is the difference between actual overhead costs and budgeted overhead costs. True False

disa [49]

The difference between the realized overheads and the estimated overheads is the total overhead cost.

<h3>What are total overhead costs?</h3>

Total overhead costs are identified as the costs related to administration, sales, marketing, and production. Before the total overhead costs are realized, a budget regarding estimated costs is prepared.

The calculation of the total overhead costs is actual overhead costs less the budgeted overhead costs.

Hence, the aforementioned statement regarding total overhead costs holds true.

Learn more about total overhead costs here:

brainly.com/question/13018280

#SPJ1

6 0

2 years ago

NEED HELP ASAP

katovenus [111]

Pierre engaging in such actions is known as rationalizing.

When a person rationalizes a decision they:

Try to prove that what they did isn't bad
Come up with some sort of reasoning to support their decision

Pierre is clearly doing something wrong here by increasing expenses more than they are supposed to be. He however convinces himself that what he is doing is not bad because no one will notice.

He is therefore coming up with reasons to prove that what he is doing is not bad and we can conclude based on this fact that he is engaged in rationalizing his behavior.

Find out more at brainly.com/question/14453354.

7 0

2 years ago

Which of the following is NOT one of the responsibilities of the Federal Reserve? A) Supervising the Reserve banks B) Maintainin

alina1380 [7]

A as an apple is correct

8 0

3 years ago