At a certain interest rate the present value of the following two payment patterns areequal: (i)$200 at the end of 5 years plus$500 at the end of 10 years. (ii)$400.94 atthe end of 5 years. At the same interest rate$100 invested now plus$120 invested atthe end of 5 years will accumulate to P at the end of 10 years. Calculate P.

Answers

Answer 1

Answer:

P = $917.77

Explanation:

The computation of the P is shown below:

Let us assume i% be the annual interest rate

Now  

Present value of 1st Payment Pattern is

= $200 ÷ (1+i)^5 + $500/(1+i)^10

Present value of 2nd Payment Pattern is

= $400.94 ÷ (1+i)^5

Now equate these two above equations

PV of 1st Payment Pattern = PV of 2nd Payment Pattern

$200 ÷ (1+i)^5 + $500 ÷ (1+i)^10 = $400.94 ÷ (1+i)^5

$500 ÷ (1+i)^10 = $200.94 ÷ (1+i)^5

2.4883 = (1+i)^5

1+i = 1.20

i = 0.20

= 20.00%

Now  

P =  $100 × 1.20^10 + $120 × 1.20^5

P = $917.77


Related Questions

Which of the following statement is not true about the Project stakeholders?
A. Stakeholders responsibilities may overlap.
B. Stakeholders may have different agenda.
C. Project Managers must understand how stakeholders can affect the project.
D. All stakeholders must be independent of each other.

Answers

I think d is the answer

Explanation:

all stakeholders must not be independent all must work together

Which of the following is not true about production possibilities frontiers?a. moving from one point to another on a PPF incurs a tradeoffb. economic growth is shown by shifting the PPF outwardc. unemployment of resources is shown by shifting the PPF inwardd. a PPF can shift inward or outward

Answers

Answer:

c. unemployment of resources is shown by shifting the PPF inwards

Explanation:

The production possibilities frontiers (PPF) would be moved from one point to another that represents the trade off between the two goods. In case of the expansion in an economy the PPF would be shift outwards and when there is a loss than the same is to be shifted inward

And, the movement of the shift could be based on the economy condition

Therefore in the given case, the option C should be selected

. Discuss and Implement the Price Adjustment Strategies in current market. Apply each strategy with 3 examples along with picture.

Answers

Answer:

There are many different price adjustment strategies which can be implemented in the current market.

Explanation:

Psychological pricing:

Psychological pricing is a strategy in which the price of a product is displayed with mostly one cent difference so the whole number shown is less by $1 and this difference can get higher if the price of the product is more.

Example 1: The price for a toy in a toy shop is $4.99, if rounded this will be $5 but the whole number visible is $4.

Example 2: The price of a laptop is $193, this again is nearly $200 but the price is reduced by $7 in order to influence their customers into buying the product.

Example 3: The price of a car is $35,995, this again is about $36,000 but the buyer may be influenced by this technique and result in purchasing the product with such price.

Geographical Pricing:

Geographical pricing is a strategy where different prices are charged in different outlets, this strategy is made keeping in mind the purchasing power of the locality, if the local people can pay higher price for a product then the price is high there but same product may have a lower price in an area where people can not pay high price.

Example 1: Price of a T-shirt is $15 in a posh area while the price of the same T-shirt is $5 in an area with poor locality.

Example 2: Price of a hair brush is $10 in a poor area while the same brush is available in a posh area at a rate of $35.

Example 3: Price for a food item is $6 in a restaurant in posh area while the same burger is available for $3 in a restaurant in a poor area.

Unhealthy company cultures typically have such characteristics as:__________.A) tight budget controls,overly strict enforcement of longstanding policies and procedures,and low ethical standards.B) a preference for conservative strategies,an aversion to incentive compensation,and excessive emphasis on profitability.C) a politicized internal environment,hostility to change and an aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.D) overemphasis on employee empowerment,a complacent approach to building competencies and capabilities,no coherent business philosophy,and excessively bureaucratic policies and procedures.E) too little emphasis on innovation,a strong preference for hiring managers from outside the company,very few core values and traditions,and a weakly enforced code of ethics.

Answers

Answer:

C) a politicized internal environment,hostility to change and an aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.

Explanation:

Unhealthy company cultures typically have such characteristics as a politicized internal environment,hostility to change and an aversion to looking outside the company for best practices,new managerial approaches,and innovative ideas.

why is it important to understand the competition your business faces?

Answers

Answer:

It can help you to make your products, services and marketing stand out. You can use this knowledge to create marketing strategies that take advantage of your competitors' weaknesses, and improve your own business performance.

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.15. The dividends are expected to grow at 10 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 19. The required return is 11 percent. a. What is the target stock price in five years? b. What is the stock price today?

Answers

Answer and Explanation:

The computation is shown below:

a. The Target stock price in five years is

As we know that

Target stock price in five years = Earnings per share in Year 5 × Benchmark P/E Ratio

where,

Earnings per share in Year 5 is

= D5 ÷ Pay-out Ratio

Now

D0 = $1.15 per share

D1 = $1.15 × 1.10 = $1.265per share

D2 = $1.265 × 1.10 = $ 1.3915

D3 = $1.3915 × 1.10 = $1.53065

D4 = $1.53065 × 1.10 = $1.683715

D5 = $1.683715 x 1.10 = $1.85209

Now

Earnings per share in Year 5 is

= D5 ÷ Pay-out Ratio

= $1.85209 ÷ 0.40

= $4.630225

Now

The Target stock price in five years is

= Earnings per share  in Year 5 × Benchmark P/E Ratio

= $4.630225 × 19 Times

= $87.97;

b. Now the stock price today is to be shown in the spreadsheet below

Which of the following is NOT a role of the closure facilitator?a. Use several questionnaires as a starting point to conduct the post-project retrospectiveb. Get delivery acceptance from the customerc. Elicit a 360-degree view and input from all stakeholders to create a more complete picture of project issuesd. Lead the team in exploring new ways for solving problemse. Create an environment in which stakeholders feel safe to provide input

Answers

Question options:

A. Create an environment in which stakeholders feel safe to provide input.b)Get delivery acceptance from the customer.c)Elicit a 360-degree view and input from all stakeholders to create a more complete picture of project issues.d)Use several questionnaires as a starting point to conduct the post-project retrospective.e)Lead the team in exploring new ways for solving problems

Answer:

b)Get delivery acceptance from the customer

Explanation:

The closure facilitator can be the project manager and does not get delivery acceptance from customer in project management. The closure facilitator is the one in charge of ensuring project objectives are met by drafting the agendas and looking for ways to achieve meeting objectives in project facilitation. The project facilitator creates an environment that makes it possible for the group and everyone involved in the project to put heads together to solve problems in the project

Security A has an expected rate of return of 6%, a standard deviation of returns of 30%, a correlation coefficient with the market of -0.25, and a beta coefficient of -0.5. Security B has an expected return of 11%, a standard deviation of returns of 10%, a correlation with the market of 0.75, and a beta coefficient of 0.5. Which security is riskier

Answers

Answer:

Security B

Explanation:

The risk of an asset is measured by beta

Market beta is measured by 1. Securities that move more than the market have a beta greater than 1 .

Securities that moves less than the market have a beta less than 1

The beta of security A is less than that of security B. Thus, security B is more risky

Sampson Corp. had 500,000 shares of common stock outstanding at the beginning of the year. The average market price was $20. On April 1, Sampson issued 100,000 shares of $1000 par value 10 percent preferred stock. On July 1, Sampson issued 200,000 warrants to purchase 10 shares of common stock each at $22 per share. On October 1, Sampson repurchased 60,000 of common stock as treasury stock for $15 per share (EPS) was:

a. 515,000.
b. 600,000.
c. 485,000.

Answers

Answer:

c. 485,000

Explanation:

[(500,000 × 12) − (60,000 × 3)] / 12 = 485,000

what is the role of a manager

Answers

Answer:

Entrusted with a leadership role, a manager is responsible for overseeing a department or group of employees within a specific organisation or company. Managers are utilised in every sector, and the business model relies on their leadership and ability to operationalise the management structure.

Explanation:

In a management position, one can expect to have the following ten day-to-day responsibilities:

Daily Operations: The primary role of a manager is to ensure the daily functioning of a department or group of employees.

Staffing: Most employers expect their managers to interview, hire, and train new employees.

Set Goals: A manager articulates both short and long-term goals to ensure a company’s longevity.

Liaising: Although a manager typically oversees a group of employees, managers also effectively communicate with their bosses and convey the necessary information to the various company parties.

Administration: Managers complete administrative work and correspond with other departments.

Delegation: Effective managers have confidence in their employees and delegate tasks according to the department’s needs.

Motivate: As a leader, a manager motivates staff and creates an environment where employees thrive.

Enforcing Policy: Managers enforce company policy to cultivate an environment that makes employees hold one another accountable for their actions.

Training: If new technologies or systems are introduced to business, employers turn to managers to train employees.

Evaluation: To encourage satisfactory work, managers evaluate data and employee performance.

Answer:

Enstrusted with a leadership role a manager is responsible for overseeing a department or group of employees within a specific organisation or company.

The following is a partial list of accounts from Pearl Jam Company: Accounts receivable $3,600 Accounts payable 2,950 Building 79,800 Cash 7,800 Common stock 25,000 Dividends 2,400 Insurance expense 900 Retained earnings 17,500 Salary expense 28,000 Salary payable 1,800 Service revenue 113,200 For the trial balance, what is the DEBIT column total

Answers

Answer:

The debit column total is $122,500.

Explanation:

A trial balance is a list of balances (debit and credits) extracted from the Ledger Accounts. It is used to prepare Financial Statements.

Pearl Jam Company trial balance is prepared as follows :

Trial Balance

                                                       Debit $           Credit $

Accounts receivable                       3,600

Accounts payable                                                 2,950

Building                                          79,800

Cash                                                 7,800

Common stock                                                    25,000

Dividends                                         2,400

Insurance expense                             900

Retained earnings                                               17,500

Salary expense                             28,000

Salary payable                                                       1,800

Service revenue                                                 113,200

Totals                                           122,500         160,450

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