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2 years ago

Planning practices are different from organization to organization. do you agree? explain

Business

1 answer:

Snowcat [4.5K]2 years ago

5 0

Answer:

yes I agree

Explanation:

because different organizations manufacture or provide different goods and services so it's not possible for them to have the same planning practices take for instance an organization that deals with the provision of food to refugees and an organization that deals with the manufacturing of goods these two organizations will plan differently on how to go about with there businesses.

I hope this helps

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A decrease in the interest rate due to an increase in the supply of loanable funds is referred to as the __________ effect.

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3 years ago

You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for you

kati45 [8]

Answer:

The answer is 16 years.

Explanation:

The formula for calculating the value of an investment that is compounded annually is given by:

$V(n)=(1+R)^nP$

Where:

$n$ is the number of years the investment is compounded,

$R$ is the annual interest rate,

$P$ is the principal investment.

We know the following:

$25000=(1+0.06)^n \times 10000$

And we want to clear the value n from the equation.

The problem can be resolved as follows.

First step: divide each member of the equation by $10,000$ :

$\frac{ 25000}{10000}=(1+0.06)^n \times \frac{ 10000}{10000}$

$2.5=(1.06)^n$

Second step: apply logarithms to both members of the equation:

$log(2.5)=log (1.06)^n$

Third step: apply the logarithmic property $logA^n=n.logA$ in the second member of the equation:

$log(2.5)=n.log (1.06)$

Fourth step: divide both members of the equation by $log1.06$

$\frac{log(2.50)}{log (1.06)} =n$

$n= 15.7252$

We can round up the number and conclude that it will take 16 years for $10,000 invested today in bonds that pay 6% interest compounded annually, to grow to $25,000.

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2 years ago

Sultan Services has million shares outstanding. It expects earnings at the end of the year of million. Sultan pays out 60% of i

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Answer: $73.33

Explanation:

Dividend discount model can be used to calculate the value of the shares:

= Earnings paid out / (Cost of equity - growth rate)

Earnings to be paid out:

= 60% * 5,500,000

= $3,300,000

Value of shares:

= 3,300,000 / ( 9% - 6%)

= $110,000,000

Share price:

= Value of shares / Number of shares outstanding

= 110,000,000 / 1,500,000

= $73.33

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