Suppose you will receive a payment of $300 one year from now. True or False: If during the year the interest rate rises, this increases the present value of your future payment. True False

Answers

Answer 1

Answer:

False

Explanation:

When value of money is evaluated over time, the interest rate is put into consideration.

Present value of future cash flows of a loan is an estimate of how much will be paid on a certain amount given a specific interest rate over a period of time.

So if there is a fall in interest rate it means that less of the original amount is being discounted, so present value increases.

On the other hand when interest rate increases more of original amount is discounted. So the present value reduces.

In the given scenario when you receive a payment of $300 one year from now and during the year the interest rate rises, this reduces the present value of your future payment


Related Questions

Unilever CEO Paul Pulman believes that business decisions at Unilever should favor those that have both good economic and good social consequences. This idea is referred to as:______

a. competitive advantage
b. corporate social responsibility
c. strategic leadership
d. stakeholder analysis
e. ethical dilemma

Answers

Answer:

b. corporate social responsibility

Explanation:

Corporate social responsibility occurs when companies engage in social activities to help others and maximize their profits, as well as against social and economic consequences and against environmental conditions. so correct answer is b. corporate social responsibility

What term is used to describe the process of developing the organization's objectives and translating those into courses of action

Answers

Answer:

Planning.

Explanation:

Planning is a term used to describe the process of developing the organization's objectives and translating those into courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

Hence, planning is an attempt to develop organizational objectives, goals, and forecasting of consumer demands within the criteria set by product, production process and distribution methods i.e within the intermediate range of its capacity.

What particular activities are involved in the enterprise's internal operational scope?

Answers

Answer:

A business internal operational scope is related to the dailya activities of the different business divisions that any company has:

Explanation:

The Marketing Department has operations like elaborating market studies, selling, and promoting products.

The Human Resources Department has operations like recruiting and training personnel.

The Operations department has operations related to the production process of the company (for a manufacturing firm)

And the Financial department has operations related with accounting and obtaining funds for the firm.

Chrissie and Mirinda want to form a corporation. Chrissie contributes property worth $750,000 and a basis of $500,000 in exchange for stock worth $750,000 and Mirinda contributes services in exchange for stock worth $250,000.

Does this qualify as a good Section 351 transaction?

What gain does Chrissie Recognize?

What gain does Mirinda recognize?

Answers

Answer:

a. Does this qualify as a good Section 351 transaction?

Answer: No. This is because service is not a qualified property contribution under the section 321. Moreover, fair value of stock received by Chrissie is just 75% of 100%.

b. What gain does Chrissie Recognize?

Answer: The Gain Chrissie recognizes = FMV of stock received - Adjusted basis of transferred property = $750,000 - $500,000 = $250,000.

c. What gain does Mirinda recognize?

Answer: The Gain Mirinda recognizes is $0 or Mirinda will recognizes compensation worth which will be taxed as an ordinary Income ($250,000).

Sheila and her team were able to successfully implement an IS in a hospitality organization. Match the success factors to their meanings.

increased visibility

increased efficiency

better quality

reduced cycle time

reduced process time in different areas



real-time status or availability of any process or product



faster execution of each process



high quality standards of products and processes

Answers

Answer:

Increased visibility- real-time status or availability of any process or product

increased efficiency - reduced process time in different areas

better quality- high-quality standards of products and processes

reduced cycle time-faster execution of each process

did get it right?

Suppose that the demand curve for chairs in Euroland is given by QD = 800,000 − 6,000P, and that the supply curve is given by QS = 14,500P - 225,000. The equilibrium price is €50.

The government is thinking about imposing a tax of €2.46 on chairs.

The price paid by buyers after the tax is

Answers

Answer:

The price paid by buyers after the tax is €51.74.

Explanation:

QD = 800,000 − 6,000P .................. (1)

QS = 14,500P - 225,000 ................... (2)

P* = equilibrium price = €50

Substituting P* into equation (1) to obtain equilibrium quantity, Q*, we have

Q* = 800,000 − 6,000(50)

Q* = 800,000 - 300,000

Q* = 500,0000

Rewrite equation (1), we have:

6,000P = 800,000 - QD

P = (800,000 / 6,000) - (1 / 6,000)QD

P = 133.333333333333 - 0.000166666666666667QD ............ (3)

Rewrite equation (2), we have:

14,500P = QS + 225,000

P = (1 / 14,500)QS + (225,000 / 14.500)

P = 0.0000689655172413793QS + 15.5172413793103 .......... (4)

With tax of €2.46, equation (4) becomes:

P = 0.0000689655172413793QS + 15.5172413793103 + 2.46

P = 0.0000689655172413793QS + 17.9772413793103

Equating equations (3) and (4), and solve for new equilibrium quantity after tax, QT, we have:

133.333333333333 - 0.000166666666666667QT = 0.0000689655172413793QT + 17.9772413793103

133.333333333333 - 17.9772413793103 = 0.000166666666666667QT + 0.0000689655172413793QT

115.356091954023 = 0.000235632183908046QT

QT = 115.356091954023 / 0.000235632183908046

QT = 489,560

To obtain the price paid by buyers after the tax, PT, we substitute QT = 489,560 for QD is equation (3) as follows

PT = 133.333333333333 - 0.000166666666666667(489,560)

PT = 133.333333333333 - 81.5933333333335

PT = 51.74

Therefore, the price paid by buyers after the tax is €51.74.

Guys Help me please :(
I:)) Give brainliest to those who help seriously

Provide your reflection on the statement below.

Mr. Greenspan did a very good job in early 1990s. But recently he's fallen prey to this crazy theory that prosperity causes inflation. So they're trying to slow the economy down by raising interest rates. It's like a doctor saying you're in great health, so we have to make you sick a little bit. It's bizarre theory. It's going to hurt our economy. ​

Answers

Answer:

g grfuuzuvgeddSduxfdydffbidneecc

You are analyzing the Statement of Cash flows for Coffey Corporation. You have the following information:

Beginning Cash: Ending Cash: $285
Net cash increase: $102

Calculate the Beginning Cash.

a. $102
b. $153
c. $183
d. $245
e. $387

Answers

Answer:

Therefore the correct option is c. $183

Explanation:

The computation of the beginning cash is shown below:

As we know that

Beginning cash is

= Ending cash - net cash increase

= $285 - $102

= $183

Hence, the beginning cash is $183

Therefore the correct option is c. $183

We simply applied the above formula so that the correct value could come

And, the same is to be considered

A bank quotes an interest rate of 5.5% per annum with quarterly (four times a year) compounding. What is the equivalent rate with (a) continuous compounding and (b) semi annual compounding

Answers

Answer:

continuous compounding rate  = 5.61 %

semi annual compounding rate =  5.34 %

Explanation:

The effective interest rate is also known as the continuous compounding rate. This is the interest amount that if compounded once a year, would give us the same results as interest per period compounded  a number of times a year.

continuous compounding rate :

5.5% Shift NOM %

4 P/YR

SHIFT EFF % =  5.61 %

semi annual compounding :

SHIFT EFF % =  5.61 %

2 P/YR

SHIFT NOM % =  5.34 %

what is the reward of entrepreneur​

Answers

Answer:

As an "entrepreneur" you can make money while doing things you like.

Explanation:

Company Y's bonds make semi-annual coupon payments of $55 each, have a par value of $1000, a current price of $1198.02, and a YTM of 7.5%. How many years until the bonds mature?

Answers

Answer:

7.5 years

Explanation:

Calculation for how many years until the bonds mature

First step is to find the Number of periods using financial calculator:

I/Y = 7.5/2 = 3.75

PV = -1198.02

PMT = 55

FV = 1,000

Press CPT, then N, which will gives us 15

Number of periods = 15

Second Step is to calculate the number of years to maturity

Using this formula

Number of years to maturity = Number of periods / Number of compounding periods in a year

Let plug in the formula

Number of years to maturity= 15/2

Number of years to maturity= 7.5 years

Therefore how many years until the bonds mature will be 7.5 years

Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?

Answers

Answer:

6.89 years

Explanation:

The discounted payback period can be calculated by using the following table

Year        Cash flows                PV(13%)             Cumulative Cash flows

0               (70000)                    (70000)                           (70000)

1           16000                    14159.29                       (55840.71)

2           16000                    12530.35                      (43310.36)

3           16000                       11088.80                      (32221.56)

4           16000                        9813.10                        (22408.46)

5           16000                        8684.16                        (13724.30)

6           16000                         7685.10                       (6039.20)

7           16000                          6800.97                         761.77

8           16000                          6018.56                       6780.33

Discounted Payback = 6 years + 6039/ 6801

Discounted Payback = 6.89 years

Hildagard, an architect, earns $415,000 from her practice. She also receives $32,000 in dividends and interest from various portfolio investments. During the year, she pays $100,000 to acquire a 30% interest in a partnership that produces a $560,000 loss for the year. She has $20,000 of passive income from other sources. Compute Hildagard's AGI, assuming that:
a. She does not participate in the operations of the partnership. In this case, Hildagard's AGI is $ _________
b. She is a material participant in the operations of the partnership. In this case, Hildagard's AGI IS $ _________

Answers

Answer:

a) Hildagard's AGI = $415,000 + $32,000 = $447,000

b) Hildagard's AGI = $415,000 + $32,000 - ($560,000 x 30%) + $20,000 = $299,000

Explanation:

The maximum deduction for passive losses is $25,000 if your MAGI is lower than $100,000 and then it phases out completely if your MAGI is $150,000 or more.

Since Hildagard's income is much higher than $150,000, then she will not be able to deduct any passive losses (at least not this year). Passive losses will still offset any passive gains though.

If Hildagard materially participated in the partnership, then the losses can be deducted from her AGI.

June Corp. sells one product and uses a perpetual inventory system. The beginning inventory consisted of 80 units that cost $20 per unit. During the current month, the company purchased 480 units at $20 each. Sales during the month totaled 360 units for $43 each. What is the number of units in the ending inventory

Answers

Answer: 200 units

Explanation:

Beginning inventory                                      80 units.

Company Purchases                                     480 units

Total                                                                560 units

Sales                                                               (360 units)

Ending Inventory                                            200 units

200 units remain in Ending inventory.

The GDP is one way to measure the size of a country's economy.


False

True

Answers

True because
GDP is just one way of measuring the total output of an economy. Gross National Product, or GNP, is another method. GDP, as said earlier, is the sum value of all goods and services produced within a country.

Answer:

It's true

Explanation:

on edge 2021

what is accountancy​

Answers

Accountancy is accountants have long coffee

Instant rewards reinforce desired behavior. Annual raises are ________ effective in reinforcing behavior because there is too much time between the behavior and the reward.
A. more
B. less
C. as
D. never

Answers

Answer:

B. less

Explanation:

As compared with the instant rewards the annual raises are becomes less effective when the behavior is reinforced also it is depend upon the time gap that lies between the behavior and the actual reward

Therefore as per the given situation, the option b is correct

hence, all other options are wrong

So, the same is to be considered

If you had a business that was growing but you needed a rather large infusion of cash to expand the business to meet demand (if you don't the demand will likely be met by competitors or open the door to new competitors) which type of financing would you choose and why? There is also the possibility of equity (stock) financing. The key is that if we finance a business by selling stock (equity financing) we give up some or a lot of control over the business.

Answers

Answer:

I would choose equity financing.

Explanation:

The reason is that in the first stages of a business, it is hard to obtain debt financing, even if the company is growing, because financial institutions assess risk, but also corporate perfomance in terms of liquidity, profitability, and efficiency, and these assessments may not be good enough in a young company for a financial institution to approve the loan.

For this reason, equity financing becomes a better alternative, even if some control of the company has to be given away. In order to reduce such control loss, a mix of common stock and preferred stock could be issued, with preferred stock holders having more entitlements to dividends, but no entitlements to corporate control.

George just got a huge promotion at his workplace and wanted to learn about the tax implications and investment opportunities related to the pay hike. He decides to hire a financial service provider. What would be the best way for George to decide on which financial service provider to choose?
A.
by checking the number of employees of the provider
B.
by doing in-depth research on the service provider
C.
by looking into their advertisements and claims
D.
by visiting their office

Answers

Answer:

its B

Explanation:

plato user

Answer:

George just got a huge promotion at his workplace and wanted to learn about the tax implications and investment opportunities related to the pay hike. He decides to hire a financial service provider. What would be the best way for George to decide on which financial service provider to choose?

A.

by checking the number of employees of the provider

B.

by doing in-depth research on the service provider

C.

by looking into their advertisements and claims

D.

by visiting their office

Explanation:

Plato

Explain the imortance of feedback in the communication process.(3marks)

Answers

Feedback gives somebody another point of view other than there own allowing them to improve themselves

ne
To help solve this problem, the expert in this passage
suggests that consumers

A.recycle their old cell phones.
B.stop purchasing cell phones.
C.refuse to buy cell phones made with coltan.
D.avoid using cell phones made in the Congo.

Answers

Answer:A. Recycle their old cell phones

Explanation:just took the test on edgeunity

Select all that apply.
Common writing formats include:
research papers
memos
e-mails
jokes

Answers

the answer is memos, emails, and research papers.

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:

Answers

Answer:

This question is incomplete, the options are missing. The options are the following:

a) Decrease.

b) Increase.

c) Remain constant.

d) Fluctuate randomly around its equilibrium value.

And the correct answer is the option B: Increase.

Explanation:

To begin with, in the microeconomics theory the supply curve is known for being the one who shows what quantity will be supplied by the offerents given a particular amount of price that is already establish by the interaction between the forces of the market given a perfect competitive market as an example. So in that graphic the supply curve will always have a positive slope and that is due to the law of supply that establishes that there is a direct relationship between the price a good and its supply, so that means that if the price a good increases its quantity supplied will increase as well with it.

What are accountants most likely involved in as part of their daily activities within an organization?
A.
Preparing profit and loss statements.
B.
Working on distribution-related logistics.
C.
Contacting potential new retailers.
D.
Working on production schedules and shifts.

Answers

Answer: A

Hope this helps!!!

Answer:

What are accountants most likely involved in as part of their daily activities within an organization?

A.

Preparing profit and loss statements.

B.

Working on distribution-related logistics.

C.

Contacting potential new retailers.

D.

Working on production schedules and shifts.

Explanation:

Plato

which item would be a high involvment purchase?
A an apple
B a pen
c. a computer
d a movie ticket

Answers

Answer:c

Explanation: you need to do more then just buy the computer

For years, Ferrari has been known as the manufacturer of expensive luxury automobiles. The company plans to attract the major segment of the car-buying market who purchase medium-priced automobiles. As Ferrari considers this trading-down strategy.

Required:
a. What branding strategy would you recommend?
b. What are the trade-offs to consider with your strategy?
c. In your opinion, should Ferrari pursue this trading-down strategy?

Answers

Answer:

Answer to each part of the question is given below separately under specific headings with detailed explanation.

Explanation:

a) Branding strategy recommendation

The branding strategy they should opt is a multi-branding strategy, in which a company's objective is to market more than one product and/or brand under the same hood in order to increase their overall market share. This strategy is somewhat used by other known car manufacturers such as Toyota (Lexus), Honda (Acura) etc.

b) Branding strategy trade-offs

The trade-off with this strategy is that the attention of Ferrari would be diverted from their main market segment and therefore, they will not be providing new products to the luxury market.

This will give the other companies in the same market segment the opportunity to increase their market share in the same segment.

c) Opinion on the trading-down strategy

It is fairly a risk for Ferrari to opt for the trading down strategy. This is due to the fact that their main market and objective is the luxury market to buy their expensive cars. Focusing on the new strategy could hurt their brand equity and this may impact their loyal buyers.

However, such could be avoided if they market this strategy with a foreign brand name and promote the name under the Ferrari hood by saying that the foreign brand has been designed by the Ferrari. Keeping the original Ferrari name and objective separate from this brand.

Suppose a campus restaurant increases the number of workers it hires from 2 workers per day to 12 workers per day. As a result, it
total revenue increases from $90 per day to $600 per day.

Assuming that each worker is equally productive, whats the marginal revenue product per day of each additional worker?

Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, whats is the current weekly wage rate in the labor market?

Answers

Answer:

It will increase 12 workers per day and increase exponentially with 2 workers. It will also increase by $510 every day.  The restaurant will gain more profit if each worker continues to keep their current weekly wage rate.

Explanation:

a. The marginal revenue product per day of each additional worker is $51 per day.

b. The current weekly wage rate in the labor market is $255.

a. Marginal revenue product per day

Using this formula

Marginal revenue product=Incremental revenue/Incremental workers

Let plug in the formula

Marginal revenue product=($600-$90)/(12-2)

Marginal revenue product=$510/10

Marginal revenue product=$51 per day

b. Current weekly wage rate

Weekly wage rate=$51×5 days

Weekly wage rate=$255

Inconclusion the marginal revenue product per day of each additional worker is $51 per day and the current weekly wage rate in the labor market is $255.

Learn more here:

https://brainly.com/question/19756259

The income statement of Trixle Motors Inc. is given to you. What is the net profit for the given period? A.
$1,600,000
B.
$ 43,500
C.
$1,665,600
D.
$1,556,500

Answers

Answer:

D.$1,556,500

Explanation:

Net profit is calculated by subtracting total expenses from total revenue.

In the case, total revenue is equal to sales revenue + interest revenue

=1,580,000 + 20,000

=1,600,000

Total expenses will be salaries + Rent + advertisement + repair

=26,000 + 6,000 + 7,000 +4500

=43,500

net profit = 1,600,000 - 43,500

net profit =1,556,500

Answer:

D.  

$1,556,500

Explanation:

In year 2008, Janet's firm is using a two stage dividend discount model (DDM) to find the intrinsic value of Smile White Co. Let the risk free interest rate is 4.5% and expected return of market is 14.5% and beta of the Smile White Co. is 1.15. In 2008, dividend per share is $1.72 for the company. Dividends are expected to grow at a rate of 12% per year for the next three years till 2011. After 2011 dividend growth rate will be at constant rate 9% per year indefinitely.
A. Calculate the required return by the market for Smile White Co. stock.
B. What was the intrinsic value of Smile White Co. stock when the analyst was evaluating the stock (that is in year 2008)?
Problem 2 (continued)
C. If the price of Smile White Co. was $35.00 at the time of this evaluation process in year 2008, was the stock overpriced or underpriced security considering the intrinsic value obtained by the two-stage DDM. What should be the trading strategy based on the evaluation.

Answers

Answer:

janet

Explanation:

its janet i think so

Shiny Industries producers of crab meat can issue perpetual preferred stock at a price of $31.86 per share. The stock would pay a constant annual dividend of $4.85 per share. What is the company's return on preferred stock (r)

Answers

Answer:

the return on the  preferred stock is 15.22%

Explanation:

The computation of the return on the preferred stock is shown below:

Return on Preferred Stock is

= Constant annual Dividend ÷  Price × 100

= $4.85 ÷ $31.86 × 100

= 15.22%

Hence, the return on the  preferred stock is 15.22%

We simply applied the above formula so that the correct value could come

And, the same is to be considered

                                     

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