Answer:
Credit terms is not a typical discounting method for manufacturers.
Explanation: Manufacturers usually offers Seasonal Sales, and Volume Discounts. It is advantageous or beneficial to the manufacturer if you will buy in volume because they can manage or avoid over production. Another example is that there are specific product that is only good for a specific season. Let us say you are manufacturing winter jackets and it is almost summer. To dispose the items easily they will offer discounts for faster sales.
Answer:
5.5%
Explanation:
This is an Annuity Due question. In an annuity due, recurring payments occur at the beginning of the yearIt is asking for the RATE. Using a financial calculator(on BEG mode), input the following;
Duration; N = 25
Recurring payment; PMT = 23.6
Present value ; PV = -334
One-time future cashflow; FV = 0
Then compute the interest rate; CPT I/Y = 5.499%
Therefore, the lottery commission is using about 5.5% interest rate.
Answer:
B). The further in the future you receive a dollar, the less it is worth today.
Explanation:
The second option asserts a true claim that 'the later we receive a dollar in future, the less it is worth today' as the market value of dollar can be seen significantly rising and therefore, it's value is much higher in relation to the value of other currencies across the globe. If a person receives a dollar today, it's worth can be much higher in the upcoming time and therefore, a lower amount today can become a huge amount tomorrow, if invested properly today. Thus, <u>option B</u> offers a true statement while the others state incorrect claims.
Answer:
$30,000
$6,000
Explanation:
Carlos risk = $30,000
Carlos risk of $30,000 is the amount of funds which he had invested in the course of his business which is why Carlos is not considered at-risk for the nonrecourse loan reason been that carlos is not found liable because the loan was not used in the business which makes him to have a risk of $30,000.
$24,000 loss that occured will reduces Carlos’ amount at-risk to $6,000
($30,000 - $24,000)
=$6,000
Answer:
The price of the stock today is $15.63
Explanation:
The three stage Dividend Discount model will be used to calculate the price of this stock as the dividends are growing at three different growth rates. These dividends will be discounted back to calculate the price of the stock today.
The price per share today under this model will be:
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+gC) / (r - gC)] / (1+r)^n
Where,
- D1 is the dividend expected for the next period of Year 1.
- gC is the constant growth rate or third stage growth rate that will last forever.
P0 = 1.25 / (1+0.2) + 1.25 * (1+0.4) / (1+0.2)^2 + 1.25 * (1+0.4) * (1+0.2) / (1+0.2)^3 + 1.25 * (1+0.4) * (1+0.2)^2 / (1+0.2)^4 +
[1.25 * (1+0.4) * (1+0.2)^2 * (1+0.08) / (0.2 - 0.08)] / (1+0.2)^4
The P0 = $15.625 rounded off to $15.63