A consol bond promises to pay $3000 each year, forever, starting next year. If the nominal interest rate is 2.5%, the present discounted value of this consol is

Answers

Answer 1

Answer:

$120,000

Explanation:

since consol bonds are bonds that pay perpetual coupons, therefore, we can use the perpetuity formula to determine their present value:

present value = annual coupon / interest rate = $3,000 / 2.5% = $3,000 / 0.025 = $120,000

consol bonds should not have maturity date, that means that they should yield a coupon payment forever


Related Questions

True or False. Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA).

Answers

Answer:

True

Explanation:

Plz mark brainliest thxxx :) hope it helps

Your employer is responsible to make contributions, on your behalf, to the Federal Insurance Contributions Act (FICA) is a true statement.

The employers is the one that is responsible for paying employees contributions on their behalf for FICA by the fact that Employers do withhold FICA taxes from employees' wages, and therefore pay employer FICA taxes and later on go and report both the employee and employer shares to the IRS.

Conclusively, the FICA taxes are payroll taxes that is used in handling social security and Medicare and as such, both employees and employers must contribute their fair share.

Learn more from

https://brainly.com/question/1160192

A firm that shuts down temporarily has to pay a. its fixed costs but not its variable costs. b. its variable costs but not its fixed costs. c. both its variable costs and its fixed costs. d. neither its variable costs nor its fixed costs.

Answers

Answer:

its fixed costs but not its variable costs.

Explanation:

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

When a firm that shuts down temporarily, the firm would still  have to pay expenses such as rent and electricity bills. These constitute fixed cost. But the firm would not have to pay variable costs e.g. the cost of buying raw materials used in variation.

On the other hand, if the firm shuts down permanently, it would not pay both its variable costs and its fixed costs

A provider of oil for home heating systems is offering $100 off its first delivery to new customers. This is an example of which sales promotion tactic?
a. Contest
b. Free gift with purchase
c. Bonuses
d. Push money

Answers

Answer:

b. Free gift with purchase

Explanation:

The promotion tactic that the provider is trying to use is a Free gift with purchase. This is because by making your first every purchase the company is basically gifting you a certain amount of money through a discount of your purchasing total. Companies tend to do this in order to attract customers through the enticement of free money or products/gifts. They are able to do this because a single purchase will make them more profit than they are wasting on the gift and can lead to recurring customers.

How much interest does a $407 investment earn at 6% over seven years?

Answers

$170.94 is the answer

If the sales revenue is $150,000 and the margin of safety is $30,000, then the break-even
sales will be:
$180,000
$120,000
$150,000
$250,000

Answers

A is the correct answer

Assume Marigold Corp. deposits $90000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Marigold have in the account after three years if interest is reinvested?
a) $101354
b) $100800.
c) $90000.
d) $101238

Answers

Answer:

a) $101354

Explanation:

To calculate the future balance of the interest-earning account use following formula

FV =  PV x ( 1 + r )^n

Where

FV = Future value = Balance of Interest-earning account after 3 years = ?

PV = present value = Amounr deposited in the account = $90,000

r = Periodic interest rate = 4% x 6/12 = 2%

n = Numbers of periods = Numbers of years x Compounding periods per year = 3 years  x 2 periods per year = 6 periods

Placing values in the formula

FV =  $90,000 x ( 1 + 2% )^6

FV = $101,354

One of the 200 business majors at a college is to be chosen for the student senate. If 77 of these students are enrolled in a course in accounting, 64 are enrolled in a course in business law, and 92 are not enrolled in either course, how many of the outcomes correspond to the choice of a business major that is enrolled in both?

Answers

Answer:

the number of outcomes that enrolled in both is 33

Explanation:

The computation of the number of outcomes that enrolled in both is as follows:

= Enrolled in accounting course + enrolled in business law + enrolled in either course - total business majors

= 77 + 64 + 92 - 200

= 33 outcomes

hence, the number of outcomes that enrolled in both is 33

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

And, the same is to be considered

The difference between Centralized and Decentralized system in Reverse Supply Chain was whether the recalled products initially being evaluated and collected at the retailers or centralized Evaluation & Test facility. True or False?

Answers

Answer:

The given statement is "True".

Explanation:

The reverse production process refers specifically to either the receipt of products from consumers through manufacturers.

In something like a decentralized operations management, most returning items go to a centralized assessment and testing facilities to have been re-stocked, refreshed as well as scarred. Throughout the organized production chain, returning goods pass directly to consumers for abolishing as well as reprocessing.

Payb- Based on the information below, calculate the payback period. (4 points) Show and label your work. Investment $700,000 Required rate of return 12% Depreciation method Straight Line Useful life 5 years Residual value $20,000 Estimated net cash inflows per year for five years $150,000 2. Based on your answer in part 1, would you accept or reject this project? Why?

Answers

Answer:

4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Explanation:

Payback period is the time it takes to recover the amount invested in a project from its cumulative cash flows

Payback period = amount invested / cash flows

$700,000 / $150,000 = 4.7 years

The project would be accepted because the amount invested in the project would be recovered within the useful life

Suppose your production costs increased. In 1 or 2 sentences, describe the effect of this increase on the quantity of goods you supply.

Answers

Answer:

In the product process, margins define much of the procedure. If production costs increase, the quantity of goods produced will almost always decrease given the price of raw materials stays consistent.

Explanation:

Smith Company sponsors a defined benefit pension plan. The beginning balance of plan assets is $5 million; the beginning balance of the PBO is $5.5 million; the expected rate of return is 8%, the discount rate is 6%, and the salary trend rate is 4%. The interest cost is equal to:___________.

Answers

Answer:

$330,000

Explanation:

Calculation for the interest cost

Using this is

Interest cost=Beginning balance of the PBO * discount rate

Let plug in the formula

Interest cost=$5.5 million * 6%

interest cost=$330,000

Therefore the interest cost is equal to:$330,000

James is an efficient sales professional. However, in the past few months, he hasn’t been performing to the best of his ability because of the change in modules. What should James’s manager do?
A.
change his team
B.
find out the cause of his behavior from his friends and relatives
C.
send him to another training session
D.
fire him because there’s no excuse for not performing well

Answers

B. In my opinion is b tell me if you got it correct

Answer:

C. send him to another training session

Explanation

plato

meaning of miscellaneous ​

Answers

Answer:

it means consisting of different items/member that are of different kinds

Explanation:

Company Earnings per Share Market Value per Share
Hilton $ 12.00 $ 176.40
SPG 10.00 96.00
Hyatt 7.50 93.75
Accor 50.00 250.00
Compute the price-earnings ratio for each of these four separate companies.
Price-Earnings Ratio
Company Choose Numerator: Divided by Choose Denominator: Price-Earnings Ratio Price-earnings ratio
Hilton
SPG
Hyatt
Accor

Answers

Answer:

Price-Earnings Ratio = Market Value Per Share / EPS

Hilton  Price-Earnings Ratio = 176.40 / 12

Hilton  Price-Earnings Ratio = $14.7

SPG  Price-Earnings Ratio = 96.00 / 10.00

SPG  Price-Earnings Ratio =  $9.6

Hyatt  Price-Earnings Ratio = 83.75 / 7.50

Hyatt  Price-Earnings Ratio = $12.5

Accor Price-Earnings Ratio = 250.00 / 50.00

Accor Price-Earnings Ratio = $5.0

The Nacho Division of the Tex-Mex Company has a return on investment (ROI) of 12%, sales of $217,000, and an asset turnover of 4. What was Nacho's operating income?
a. $1,628.
b. $6,510.
c. $104,160.
d. $26,040.

Answers

Answer:   Nacho's operating income= b. $6,510.

Explanation:

First, we calculate the Total Asset of the Divison.

Asset turnover = Sales/ Total Assets

Total Assets = Sales/ Asset turnover

= $217,000/ 4

Asset turnover=$54,250

Also Return on investment = Operating Income/ Total Assets

Therefore Operating Income=Return on investment x Total Assets

= 12% X 54,250

=$6,510

Basse Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31.
Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Answers

Answer and Explanation:

The journal entries are as follows:

1. cash dividend Dr (7,000 shares × $1) $7,000

            To Dividend payable $7,000

(Being the declaration of the dividend is recorded)

Here the cash dividend is debited as it increased the balance of the dividend and dividend payable is credited as it increased the liabilities

2. Dividend payable Dr $7,000

        To Cash $7,000

(being the payment is recorded)

Here the  dividend payable is debited as it decreased the liabilities and cash is credited as it also decreased the assets

Which type of pricing strategy has gained popularity due to the increased use of the Internet?
OA going-rate pricing
O B.
OC. value pricing
OD. perceived-value pricing
auction-type pricing

Answers

Answer:

B. Auction-Type Pricing

Explanation:

Auction-type pricing: With Internet commerce increasing in volume, the auction-type pricing strategy is growing popular in the online marketplace.

Answer:

Auction-type pricing

Explanation:

Suppose the spot rate of the pound today is $1.70and the three-month forward rate is $1.75. How can a U.S. importer who has to pay 20,000pounds in three months hedge the foreignexchange risk?

Answers

Answer: £35000

Explanation:

From the question, we are informed that the spot rate of the pound today is $1.70 and the three-month forward rate is $1.75.

Based on the above information, if

The importer buys £20,000 at $1.75/£ and therefore pays the amount in 90 days as:

£20,000 x $1.75/£

= £35,000

The area that consumes the majority of a family’s income is

Answers

The area that consumes the majority of a family’s income is Housing.

This is according to the Bureau of Labor Statistics' info for 2017.

In March, gross earnings of Perlman Company totaled $250,000. All earnings are subject to 7.65% FICA taxes, 5.4% state unemployment taxes, and 0.8% federal unemployment taxes.
A) Compute the employer's payroll tax expense.
B) Prepare the entry to record payroll taxes.

Answers

Answer:

A. Employer payroll tax expense includes FICA and State and Federal Unemployment tax.

= (250,000 * 7.65%) + (250,000 * 5.4%) + (250,000 * 0.8%)

= 19,125 + 13,500 + 2,000

= $‭34,625

B.

Date      Details                                                          Debit              Credit

March    Payroll Tax expense                                $34,625

              FICA Taxes                                                                          $19,125

              State Unemployment Taxes                                             $13,500

              Federal Unemployment Taxes                                         $2,000‬

Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow 0 $28100 1 10,300 2 13,000 3 14,900 4 12,000 5 — 8,500
The company uses an Interest rate of 8 percent on all of Its projects.
a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g., 32.16.)
b. Calculate the MIRR of the project using the reinvestment approach. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Discounting approach MIRR %
b. Reinvestment approach MIRR %
c. Combination approach MIRR €Y.

Answers

Answer and Explanation:

The computation of MIRR under the following methods are shown below:

a. Using the Discounting Approach:

Interest Rate = 8%

The Present Value of Cash Outflows os

= -$28,100 - $8,500 ÷ 1.08^5

= -$33,884.96

Now  

Let us assume the MIRR be i%

So,

0 = -$33,884.96 + $10,300 ÷ (1 + i) + $13,000 ÷ (1 + i)^2 + $14,900 ÷ (1 + i)^3 + $12,000 ÷ (1 + i)^4

Now use the financial calculator, after using it i is 17.18%

Thus, MIRR is 17.18%

b. Using the Reinvestment Approach:

Interest Rate = 8%

The Future Value of Cash Flows is

= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08 - $8,500

= $52,228.65  

Let us assume MIRR be i%

So,  

0 = -$28,100 + $52,228.65 ÷ (1 + i)^5

(1 + i)^5 = 1.85867

1 + i = 1.1320

i = 0.1320

= 13.20%

Thus, MIRR is 13.20%

c. Using the Combination Approach:

Interest Rate = 8%

Present Value of Cash Outflows is

= -$28,100 - $8,500 ÷ 1.08^5

= -$33,884.96

And,  

Future Value of Cash Inflows is

= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08

= $60,728.65

Let us assume MIRR be i%

So,  

0 = -$33,884.96 + $60,728.65 ÷ (1 + i)^5

(1 + i)^5 = 1.7922

1 + i = 1.1238

i = 0.1238

= 12.38%

Thus, MIRR is 12.38%

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,900 for March and $50,600 for April. What are the budgeted cash receipts from sales on account for April

Answers

Answer:

$26,075

Explanation:

Follow the  Receipt Cycle that has been stated but this time focusing on the month of April

Receipts :

Collection for April Sales ( $50,600 × 25%)  = $12,650

Collection for March Sales ( $17,900 × 75%) = $13,425

Total Collection in April                                  = $26,075

Therefore, Total cash receipts from sales on account for April  are  $26,075.

HELP PLEASEE
Type the correct answer in the box. Spell all words correctly.
What do inventory firms use when moving delicate products?
Inventory firms use_
belts when moving delicate products.

Answers

Answer:

Conveyor belts.

Explanation:

Conveyor belts are a never ending flexible belt which is moved by chain of rollers for carrying objects from one place to another. Conveyor belts is an important tool used in material industry for transporting materials in bulk from one place to another. The material handling industries use conveyor belts to move bulky products such as salt, grain, ore, etc from one place to another.

The inventory firms use conveyor belts to move delicate products from one place to another.

Therefore, conveyor belts is the correct answer.

Answer:

Conveyor belts

Explanation:

If a 3D printer increased in cost at exactly the inflation rate, what was the inflation rate if the printer costs exactly twice as much now as it did 10 years ago?

Answers

Answer:

7.18% per year

Explanation:

Calculation for the inflation rate

Using this formula

Inflation rate =1(1 + f)^10 =2

Inflation rate = (1 + f) =2^0.1

Inflation rate=( 1.0718f-1)*100

Inflation rate = 0.0718 *100

Inflation rate=7.18%

Therefore the inflation rate will be 7.18% per year

When a single broker represents both parties in a real estate transaction, a _______ agency may exist.

Answers

Answer:

Dual

Explanation:

real estate transaction,which is used to convey ownership of a particular property to the buyer whereby there is a mutual agreement on some terms. The contract may be long it in shirt time.the end process is usually reffered to as “closing,” and this is a term that explains that both parties need to fulfill all terms and conditions that is associated with the exchange.

It should be noted that When a single broker represents both parties in a real estate transaction, a dual agency may exist.

During self-construction of an asset by Richardson Company, the following were among the costs incurred: Fixed overhead for the year $1,000,000 Portion of $1,000,000 fixed overhead that would be allocated to asset if it were normal production 80,000 Variable overhead attributable to self-construction 100,000 What amount of overhead should be included in the cost of the self-constructed asset

Answers

Answer:

$180,000

Explanation:

Amount of overhead should be included in the cost of the self-constructed asset = Fixed overhead that would be allocated to asset + Variable overhead attributable to self-construction

= $80,000 + $100,000

= $180,000

Thus, $180,000 is the amount of overhead that should be included in the cost of the self-constructed asset.

What helps art directors ensure that ad vision works on the screen and allows cost effective critical changes to take place before production?
A.
Copywriting
B.
Storyboarding
C.
Animating
D.
Auditioning

Answers

Storyboard - hope that helps!

Answer:

Storyboarding B

Explanation:

Suppose that the Federal Reserve sells Treasury bills. We can expect this transaction to _____ the money supply, _____ Treasury bill prices, and _____ interest rates.

Answers

Answer:

increase; raise; lower

Explanation:

In the case when the treasury bills purchased that represents there is an money injection in the economy this results in rise in the money supply due to which the rate of interest would reduced. Also if the purchase of the treasury bills would rise this represents that the treasury demand would rise that results rise in the Treasury bills price

so the above is the answer  

2. A series of five constant dollar (or real-dollar) payments, beginning with $6,000 at the end of the first year, are increasing at the rate of 5% per year. Assume that the average general inflation rate is 4%, and the market interest rate is 11% during this inflationary period. What is the equivalent present worth of the series

Answers

Answer:

The equivalent present worth of the series is $27,211.16.

Explanation:

The first thing to do is to calculate the real interest using the following formula:

1 + i = (1 + r)(1 + inf) ..................... (1)

Where;

i = market interest rate = 11%, or 0.11

r = real interest rate = ?

inf = average general inflation rate = 4%, or 0.04

Substituting the values into equation (1) and solve for r, we have:

1 + 0.11 = (1 + r)(1 + 0.04)

1 + r = 1.11 / 1.04

1 + r = 1.06730769230769

r =  1.06730769230769 – 1

r = 0.06730769230769

The equivalent present worth of the series can now be calculated using the formula for calculating the present value (PV) of a growing annuity as follows:

PVga = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (2)

Where;

PVga = present value of a growing annuity or equivalent present worth of the series = ?

P = constant dollar (or real-dollar) payments = $6,000

r = real interest rate = 0.06730769230769

g = growth rate of payments = 5%, or 0.05

n = number of years = 5

Substituting the values into equation (2), we have:

PVga = (6000 / (0.06730769230769 - 0.05)) * (1 - ((1 + 0.05) / (1 + 0.06730769230769))^5)

PVga = 346,666.666666712 * 0.078493722845371

PVga = $27,211.16

Therefore, the equivalent present worth of the series is $27,211.16.

If the abnormal return for a stock during the first week is +5 percent and +3 percent during the second week, what is the abnormal return for the two-week period?
A) 5 percent
B) 3 percent
C) 8.15 percent
D) 8 percent

Answers

Answer:

C) 8.15 percent

Explanation:

The computation of the abnormal return for the two week period is as follows:

Abnormal return is

= (1 + first week abnormal return) × (1 + second week abnormal return) - 1

= (1 + 5%) × (1 + 3%) - 1

= 1.0815% - 1

= 8.15%

Hence, the correct option is c.

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

And, the same is to be considered

Other Questions
ASAPWhich river lies in the far southwest of the Fertile Crescent?the Nilethe Tigristhe Jordanthe Euphrates Explain the evidence Ramn uses to show how unfair the Brighton Recreation Center's decision is. Use details and information from the letter to support your answer. Trapezoid ABCD is congruent to trapezoid ABCD .Which sequence of transformations could have been used to transform trapezoid ABCD to produce trapezoid ABCD ? Trapezoid ABCD was translated 7 units up and then 12 units left. Trapezoid ABCD was reflected across the y-axis and then across the x-axis. Trapezoid ABCD was reflected across the y-axis and then translated 7 units up. Trapezoid ABCD was reflected across the x-axis and then across the y-axis. I will give brainliest to the best answer.A random two digit number (10-99) is drawn. Find each probability 1. p(32)2. p(odd number)3. p(a multiple of 5)My teacher gave an assignment on this and didn't even teach how to do it. PLEASE HELP ME ! (i will give brainliest) what are the 10 central themes of biology and can you explain them? I'd really appreciate your help, please no joke answersFind the distance from (7, -4) to y+3x - 5Procedure would be apreciatedImage attached and an explaination I don't fully understsand What is the name of the theory that states that the continents are moving around the Earth's surface both in the past and still today? atheory of plates btheory of continental drift ctheory of plate tectonics dtheory of earthquakes Complete the table.$80,20%what is the sale price y=-3x2 + 18x + 10?What is the axis of symmetry Good coordination means a person is able to perform tasks...A. slowy and methodically.B. quickly and effectively.OC.that are foreign and new. I need the answer please based on what you've learned, how does American culture compare to a salad bowl If 16g if a radioactive substance are present initially and 5yr later only 8g remain how much substance will be present after 9yr The picture shows an orange falling from an orange treeWhich forces are acting on the falling orange?A) The force of gravity is pulling down in the orange, while the force of friction is pushing up on the orange B) The tension force is pulling down on the orange, while the force of gravity is pushing up on the orange.C) The force of friction is pulling down on the orange, while the normal force is pushing up on the orange.D) The force of gravity is pulling down on the orange, while the tension force us pushing up on the orange. Fleas live on a cat and feed on the cats blood. The cat eats a bird outside in a rose garden. Which organism is a parasite in this scenario?birdcatfleasrose how many dots would a dot diagram for selenium, one of the group 16 elements, have? Which type of error occurred in the following lines of code? >>> print(9 / 0)Traceback (most recent call last): File " ", line 1, in 9/0ZeroDivisionError: division by zeroAnswer choices:reserved word errorlogical errorexceptionsyntax error Which of the following correctly identifies the parts of a historical narrative?Group of answer choicesAn introduction of the action and a lists of the events that occurred.An engaging beginning and an ending that includes historical facts and details.A well-developed story that is written as a list with no vivid language.An engaging beginning, well-developed middle, and satisfying ending. A _____________reaction mechanism involves loss of a leaving group, formation of a ________ followed by the removal of a proton (H ) from the adjacent Carbon. A. electrophile B. carbocation C. E1 D. E2 E. nucleophile