Spell all words correctly.

. Imagine that you are buying a new computer and comparing different brands and prices. List and describe two nonprice competiti

Luba_88 [7]

Popularity and warranty

5 0

3 years ago

CSU Co. just paid a dividend of $1.4 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent

boyakko [2]

Answer:

$16.93

Explanation:

Current stock price = dividend ( 1 + growth rate) / required return - growth rate

$1.4(1.04) / 0.126 - 0.04 = $16.93

8 0

3 years ago

Paula inherits a home on July 1, 2019 that had a basis in the hands of the decedent at death of $290,000 and a fair market value

Airida [17]

Answer:

her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

Explanation:

Recognized gain on sale of old house

= ($600,000 - $125000) - $30,000 - $2000

= $443,000

Paula's recognized gain = $443,000 - $250,000

= $193,000

Her basis in the inherited home = $500,000 + $100,000

= $600,000

Therefore, her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

4 0

3 years ago

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com

oksano4ka [1.4K]

Answer:

initial outlay $40,000

savings per year = $5,200

additional contribution margin = 2,000 x $2.40 = $4,800

machines useful life = 6 years

1) total annual cash flows (assuming no residual value)

Year₀ = -$40,000

Year₁ = $5,200 + $4,800 = $10,000

Year₂ = $10,000

Year₃ = $10,000

Year₄ = $10,000

Year₅ = $10,000

Year₆ = $10,000

2) to determine IRR we can use a financial calculator or the present value of an annuity formula:

PV = annual payment x annuity factor

PV = $40,000

annual payment = $10,000

annuity factor = $40,000 / $10,000 = 4

3) using present value of an annuity table:

we have 6 periods, and we must look for an interest rate that results in an annuity factor of 4 = 13% (the exact annuity factor is 3.998)

using a financial calculator, the IRR = 12.98%, which we can round to 13%

4) the cash flows will be:

Year₀ = -$40,000

Year₁ = $10,000

Year₂ = $10,000

Year₃ = $10,000

Year₄ = $10,000

Year₅ = $10,000

Year₆ = $20,515

We cannot use the annuity formula now because our annuities are not equal. Using a financial calculator, IRR = 16.99%

6 0

3 years ago

Please answer the following questions to describe an instance in which you, an acquaintance, or family member has experienced an

AlexFokin [52]

Answer:

The externality that affected me was the U.S. recession of 2018.

Explanation:

The externality is the term that refers to a variation in a outside factor that end up affecting persons involve in a business that is not related directly to the outside factor that changed.

1. The 2008 recession made harder for me to get a job in the restaurant sector even though the prices of the restaurants and hotels continued to be the same, many person have to cut their expenditure in tourism as the recession significantly impacted the financial institutions and many persons were laid off from their jobs which decreased consumption.

2. The effects of the recession were: increase in the unemployment, decrease in the consumption, increase in foreclosures.

3. I experienced decrease in my quality of life as it was harder for me to keep a job for a long time. Most of jobs were part time therefore it was a time where I have to live on my savings.

4. Pollution is best reduced if companies take conscience of the fact that they have a greater impact on the environment than individuals. This will lead to better business practices in the manage of residuals and raw materials.

5. A positive externality can create a bubble in the prices and overestimate the actual value of an asset e.g. cryptocurrencies bubble was a positive effect for some investor that really knew the value of this securities but in the long run it created a bubble and people that did not know about cryptocurrencies invested and lost most of their money.

3 0

3 years ago