answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
eimsori [14]
2 years ago
15

For which of the following transactions would the use of the present value of an annuity due concept be appropriate in calculati

ng the present value of the asset obtained or liability owed at the date of incurrence? A. A capital lease is entered into with the initial lease payment due upon the signing of the lease agreement.
B. A capital lease is entered into with the initial lease payment due one month subse-quent to the signing of the lease agreement.
C. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 7%.
D. A ten-year 8% bond is issued on January 2 with interest payable semiannually on July 1 and January 1 yielding 9%.
Business
1 answer:
Drupady [299]2 years ago
3 0

Answer:

A capital lease is entered into with the initial lease payment due upon the <u><em>signing of the lease agreement.</em></u> The annuity begins with a payment

Explanation:

An annuity-due represnet an annuity were payment or deposits are perform at the beginning of the period.

B no. It doesn't start with a payment.

C no, there is no payment at issuance.

D same as C only the rates changes but this, do not change the essence of the annuity it is still a common annuity not annuity-due

You might be interested in
A firm has sales of $215,600, costs of $124,800, interest paid of $3,600, and depreciation of $11,400. the tax rate is 34 percen
Tju [1.3M]

Cash Coverage ratio indicates if a firm has enough cash to pay of its interest expenses. The ideal ratio to be maintained by a firm is 1:1. This can be given by the following formula:

Cash Coverage Ratio=\frac{Earnings before Interest and Tax+Depreciation }{Interest Expense}

Cash Coverage Ratio=\frac{215600-124800+11400}{3600}

Cash Coverage Ratio=28.38

Assumption: Cost includes Depreciation, thus depreciation is added back, To find Cash Profits before Interest and Taxes.


6 0
2 years ago
Sweet Treats common stock is currently priced as $36.72 a share. The company just paid $2.18 per share as its annual dividend. T
Agata [3.3K]

Answer:

8.27%

Explanation:

Data provided in the question:

Current price = $36.72

Annual dividend paid, D0 = $2.18

Dividend growth rate, g = 2.2% = 0.022

Now,

Cost of Equity = [ (Dividend For Next Year) ÷ Current Price ] + Growth rate

= [ ( D0 × ( 1 + g  ) ) ÷ $36.72 ] + 0.022

= [ ( $2.18 × ( 1 + 0.022  ) ) ÷ $36.72 ] + 0.022

= [ 2.22796  ÷ $36.72 ] + 0.022

= 0.06067 + 0.022

= 0.08267

or

= 0.08267 × 100% = 8.267% ≈ 8.27%

6 0
2 years ago
A firm must choose among three alternative ways to compensate its salaried employees. It can pay them at the end of each week, a
Murrr4er [49]
I believe the answer is B
6 0
1 year ago
Blair Housewares wants to add new products to its existing line of products. Managers are correct in believing that the purpose
Zinaida [17]

Answer:

False

Explanation:

The general purpose of idea generation is to come up with the largest amount of possible ideas, it doesn't matter how crazy they might seem.

The purpose of succeeding stages will be to funnel the ideas and only work and develop the most promising ones.

3 0
2 years ago
If it takes a fan 20 minutes to walk to her seat in the last section in the stadium and it takes 5 minutes to get to the lowest-
jenyasd209 [6]
The last section in the stadium
 t1 = 20min
 the lowest-level
 t2 = 5min
 The average between those two sections of the stadium to find a seat is:
 A = (t1 + t2) / (2)
 A = ((20) + (5)) / (2)
 A = (25) / (2)
 A = 12.5min
 Answer:
 The average time to find a seat in these two sections at the stadium is
 12.5min
5 0
1 year ago
Other questions:
  • Delvin Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
    7·1 answer
  • A bank manager wants to learn more about the relationship between the time a customer has to wait to be served and the overall s
    11·1 answer
  • Secret Prizes Inc. is planning to sell 200 buckets and produce 190 buckets during March. Each bucket requires 500 grams of plast
    6·1 answer
  • Kate is a busy student. She likes to run to stay healthy and fit. She doesn't shop all the brands because she knows what shoe is
    14·2 answers
  • Mary's 25th birthday is today, and she hopes to retire on her 65th birthday. She has determined that she will need to have $3,00
    14·1 answer
  • Which of the following is true of the relationship between the average product of labor and the marginal product of laborLOADING
    14·1 answer
  • Between projects A and B, project A will be considered a superior financial undertaking if it has:
    8·1 answer
  • Dianne Doolittle wants to download an itemized invoice for the QuickBooks Online subscriptions on her wholesale billing account
    14·1 answer
  • Xerox, the U.S. Postal​ Service, and​ McDonald's have enjoyed significant market power in the past. List and explain three major
    5·1 answer
  • find examples of how intelligent systems can facilitate activities such as empowerment, mass customization, and teamwork
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!