Which one of the following statements is correct concerning annual percentages rates (APRs)? Answer: The APR is equal to the monthly interest rate multiplied by 12 Give an interest rate of zero percent‚ the future value of a lump sum invested today will always: Answer: remain constant Answer: II and IV A firm created as a separate and distinct legal entity that may be owned by one or more individuals or entities is called a: corporation The capital structure of a firm refers to the
Premium Net present value Rate of return Investment
Accounting rate of return Accounting rate of return (also known as simple rate of return) is the ratio of estimated accounting profit of a project to the average investment made in the project. ARR is used in investment appraisal. Formula Accounting Rate of Return is calculated using the following formula: ARR = Average Accounting Profit Average Investment Average accounting profit is the arithmetic mean of accounting income expected to be earned during each year of the project’s life time
Premium Net present value Depreciation Rate of return
provided. Problem 1 . Regency Integrated Chips (RIC)‚ a large Nashville-based technology company is evaluating a new project to manufacture a new chip. a. b. The project’s estimated economic life is 5 years. RIC’s marketing vice-president believes that annual sales would be 30‚000 units if the units were priced at $3‚000 each. RIC expects no growth in unit sales‚ and it believes that the unit price will rise by 2 percent each year. c. The engineering department has reported that the project will require
Premium Depreciation Variable cost
a difference between the interest rates on AAA corporate bonds and U.S. Treasury notes? 3. Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50‚000 in ten years or an annuity of $8‚000 for ten years. Which is worth more now‚ if the discount rate is (a) 6% (b) 19%? 4. Suppose you open a saving account with $1‚800 earned in a summer job. The account’s stated interest rate is 11%. Calculate effective annual rate (EAR) if interest is paid (a) semiannually
Premium Investment Interest rate Compound interest
examination room. Bags must be left at the front of the room. 1 Part A (15 marks) Select the one best answer choice for each question. Question 1: A stock just paid its annual dividend of $9. The share price is $60. The required return of the stock is 10% pa as an effective annual rate. What is the implied growth rate of the dividend? (a) -0.8565 (b) -0.0500 (c) -0.0435 (d) 0.0000 (e) 0.1500 Question 2: A stock is expected to pay a dividend of $15 in one year (t=1)‚ then $25 for 9 years
Premium Bond Bonds
1) A $100 deposit today that earns an annual interest rate of 10% is worth how much at the end of two years? Assume all interest received at the end of the first year is reinvested the second year. 2) An investment of $100 today is worth $116.64 at the end of two years if it earns an annual interest rate of 8%. How much interest is earned in the first year and how much in the second year of this investment? 3) Which of the following investments has a larger future value? A $100 investment
Premium Money Investment Bond
20% of the purchase price in each of the next 4 years. If you pay the entire bill immediately‚ you can take a 5% discount from the purchase price. | a. | Calculate the present value of the payments‚ if you can borrow or lend funds at a 7% interest rate. Assume the product sells for $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) | Present value | $ | b. | Calculate the payment net of discount. | Payment net of discount | $ | c. | Which is
Premium Money Time value of money Debt
Column Chromatography of Plant Pigments Paul Ibarbia‚ Gene Paolo Jasmin‚ Gianpaolo Jimenez and Lorenzo Labicane* Department of Biology‚ University of Santo Tomas‚ Manila‚ Philippines Abstract Column chromatography of plant pigments is the separation of plant pigments extracted from Capsicum frutescens (siling labuyo). No slurry is prepared of the eluent; eluent with the stationary phase is set and then carefully poured into the column. The eluent are the solvents which are responsible for the
Premium Chromatography Gas chromatography
Aro Volturi: Anthony Hopkins You were watching The Silence Of The Lambs‚ with Aro. "He is amazing‚" you murmured to Aro. "Who?" "Anthony Hopkins of course‚" you replied. He raised his eyebrow. "How so?" You thought for a minute. "He is elegant‚ charming‚ handsome and such a gentleman." Upon seeing Aro’s hurt and slightly jealous face‚ you quickly said‚ "A lot like you actually." He asked‚ "But you still love me right?" You smiled. "Of course." Marcus Volturi: Alan Rickman (R.I.P.) You were watching
Premium Love Marriage William Shakespeare
“An Occurrence at Owl Creek Bridge” is short story written by Ambrose Bierce. The short story takes place during the Civil War. Peyton Farquhar a civilian of the south is caught violating with the bridge and is sentenced to be hanged. Ambrose Bierce’s short story became a suspenseful phenomenon. He maintain suspenses throughout the short story by enhancing the mind of Peyton into a deep fantasy. Bierce’s use of flashbacks‚ setting‚ illusion‚ and symbolism to create suspense. In the second paragraph
Premium An Occurrence at Owl Creek Bridge