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
ddd [48]
1 year ago
15

Annuities are a series of constant cash flows that have been received over a certain period of time. However, not all annuities

are created equal. Some annuities adjust the payments based on certain macroeconomic factors. Growing annuities are a series of payments that grow at a rate. You invested in an aggressive growth fund and expect to earn 19.08% annually over the next five years. However, due to strong growth, inflation is expected to be 9.45%. What should be your expected real rate of return
Business
1 answer:
Mademuasel [1]1 year ago
6 0

Answer:

Constant

8.80%

Explanation:

The growing annuities refers to the series of payments that grow at a constant rate

And, the expected real rate of return is

As we know that

Real rate of return = {( 1 + nominal rate of return) ÷ ( 1+ inflation rate)} - 1

= {( 1 + 19.08%) ÷ ( 1 + 9.45%)} - 1

= (1.1908 ÷ 1.0945) - 1

= 8.80%

Simply we applied the above formula to determine the expected real rate of return

You might be interested in
A pharmacist wants to establish an optimal inventory policy for a new antiobiotic that requires refrigeration in storage. The ph
Akimi4 [234]

Answer:

EOQ: 80

order per year: 10

Explanation:

We need to solve for the Economic Order Quantity:

Q_{opt} = \sqrt{\frac{2DS}{H}}

Where:

D = annual demand = 800

S= setup cost = ordering cost = 16

H= Holding Cost = 4

Q_{opt} = \sqrt{\frac{2 \times 800 \times 16}{4}}

EOQ = 80

Orders per year = 800 demand/ 80 order size= 10

5 0
2 years ago
Online aggregators are more comprehensive than the home listing service that real estate agents use. True or False
damaskus [11]

Answer:

The given statement is True. Online Aggregators are more comprehensive than the home listing service that real estate agents use.

Explanation:

Online aggregators are the programs or sites in the digital space which collects related items of content and link them and show them through their sites or programs.

Online aggregators puts the most relevant information that people are looking for. They link different aspects with each other to help people take decisions, like in this question, regarding the real estate.

Real Estate agents don't tell certain information to the client due to some laws or some insecurities of loosing the clients, but online aggregators make each and everything clear and even finds links between the choices of homes and display them on their sites. For example, an online aggregator may list the houses that are near to schools, hospitals, community service centers and also put the ranking of those schools and other services in that area, they tell the crime rate in that area, security, etc. But all such things are usually kept hidden by the real estate agents due to some overly restricted codes in their agreement of the licence from the government.

7 0
2 years ago
Read 2 more answers
Each of two stocks, C and D, are expected to pay a dividend of $3 in the upcoming year. The expected growth rate of dividends is
Stels [109]

Answer:

Intrinsic value of Stock C is 300

Explanation:

given data

expected pay dividend = $3

growth rate of dividends = 9%

stock C require a rate of return = 10%

stock D require a rate of return = 13%

solution

we get here intrinsic value by the DDM method

intrinsic value = Upcoming Dividend ÷ ( Required rate of return - Growth rate of stock )  .................1

intrinsic value = \frac{3}{(0.10-0.09)}    

intrinsic value = \frac{3}{0.01}  

intrinsic value = 300

so intrinsic value of Stock C is 300

8 0
2 years ago
If inventory increases under the retail method, which of the following is true: a. Under the Average Cost retail method, a new l
NeTakaya

Answer:

d. Under the LIFO retail method, a new layer would be added.

Explanation:

The retail method is used to estimate ending inventory/cost of goods sold and is  widely used for financial reporting purposes, especially for quarterly financial statements. Retail methods are usually used with the weighted average cost flow assumption, FIFO or LIFO.

Now when the inventory increases under the retail method, LIFO retail method is the best to use because it gives you the highest cost of goods sold and the lowest taxable income. LIFO layer refers to a tranche of cost in an inventory costing system that follows the last-in, first-out (LIFO) cost flow assumption. Therefore when inventory increases under the LIFO retail method, a new layer would be added.

3 0
1 year ago
A political pundit argues that the government should impose a tariff on tires because they are a necessary input into the produc
valentina_108 [34]

Answer:

The correct answer is letter "A": National-security argument.

Explanation:

The National-security argument is a point of view that promotes the imposition of quotas and tariffs on imports related to national security in an attempt to boost domestic production on the same items. This situation will cause that in front of war the country will produce its own supplies to meet effectively its demand instead of relying on other countries to provide them with those goods. Most protectionist countries tend to support this idea.

7 0
1 year ago
Other questions:
  • PoolPak produces climate-control systems for large swimming pools. The company's customers are more concerned about service supp
    7·1 answer
  • Human Resources Manager Claire Siu must inform Anthony that company job changes will require him to seek retraining or lose his
    10·2 answers
  • A new tax business, Taxes Done Right, will purchase a copying machine. After speaking with their financial advisor, they find th
    8·1 answer
  • Flax purchased $5,000 in equipment during 20X4. Flax allocated one-third of its depreciation expense to selling expenses and the
    15·1 answer
  • A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries
    12·1 answer
  • Consider two nations, Spendia and Savia. The MPC for Spendia is 0.8, and the MPC for Savia is 0.5. Assume that both nations expe
    5·1 answer
  • Suppose you have $1,000,000 today and starting a year from now you intend to spend this money over the next 30 years. Assume the
    7·1 answer
  • Eaton Tires manufactures tires for dune buggies and has two different products, nubby tires and smooth tires. The company produc
    13·1 answer
  • You bought a stock six months ago for $80.82 per share. The stock paid no dividends. The current share price is $86.59. Required
    11·1 answer
  • Chrzan, Inc., manufactures and sells two products: Product E0 and Product N0. Data concerning the expected production of each pr
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!