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ddd [48]
2 years ago
14

3) Tobi owns a perpetuity that will pay $1,500 a year, starting one year from now. He offers to sell you all of the remaining pa

yments after the next 25 payments have been paid. (A) What price should you offer him for payments 26 onward if you desire a rate of return of 8 percent
Business
1 answer:
Lesechka [4]2 years ago
5 0

Answer:

you should pay up to $2,737.84 to Tobi

Explanation:

first, the terminal price of the perpetuity must be determined = annual payment / r = $1,500 / .08 = $18,750

now, the present day value of the future terminal value

present value = future value / (1 + r)ⁿ = $18,750 / (1 + 8%)²⁵ = $2,737.84

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7 0
2 years ago
An angry customer approaches a supermarket associate to complain. After hearing the complaint, what is the first thing the assoc
BaLLatris [955]

Answer: The associate should say something like " I understand why you feel that way. How can I improve or fix this situation for you?" and try to diffuse the situation. After the customer leaves, the supermarket associate should report this to the manager.

Hope this helps!  :)

Explanation:

8 0
3 years ago
Andrea and Phillip have been married for two years when they walk into the local State Farm agent's office. They see a banner (w
Amanda [17]

Answer:

$343

Explanation:

Andrea and Phillip's annual premium cost can be calculated using the cost per thousand formula:

cost per thousand = annual premium / thousands of coverage

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$0.98 = annual premium / 350

annual premium = $0.98 x 350 = $343

5 0
3 years ago
A Co. showed the following values for its inventory as of the end of its fiscal year: Historical cost $100,000 Current replaceme
Levart [38]

Answer:

$90,000

Explanation:

The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:

Cost &

Net realizable value

Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.

4 0
3 years ago
Read 2 more answers
More companies are posting job advertisements on industry specific sites, because the applicants are usually more qualified.
aleksley [76]

Answer: True

Explanation: Industry specific sites are usually used by candidates that have  of expertise in specific industry sectors, For example- any candidate having higher skill set in IT sector might visit such a sight.

These sights brings the win win situation in the market as the candidate gets the job in which he or she is best at and the industry gets the experts for every job it has.

Thus, the above statement is true.

8 0
3 years ago
Read 2 more answers
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