Sal Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.88 every year in perpetuity. If the required return is 4.69 percent, what is the current stock price? A) $93.65 B) $108.93 C) $104.05 D) $99.39 E) $97.11

Answers

Answer 1

The required current stock price of the preferred stock of Sal Co. is $104.05.

We can use the formula for the present value of perpetuity to calculate the current stock price, where PV is the present value of the preferred stock, D is the annual dividend, and r is the required return.

PV = D/r

Given:Annual dividend = $4.88Required return = 4.69% = 0.0469Using the above formula:PV = $4.88/0.0469PV = $104.05

Therefore, the current stock price of the preferred stock of Sal Co. is $104.05.Option (C) is correct.

Explanation:To calculate the current stock price of the preferred stock of Sal Co., we need to calculate the present value of perpetuity.

This is given by the formula:PV = D/r Where,PV = Present value of Perpetuity and D = Annual dividen

dr = Required rate of return

On substituting the given values, we get:PV = $4.88/0.0469PV = $104.05

Therefore, the current stock price of the preferred stock of Sal Co. is $104.05.

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Related Questions

If $81,000 is invested in an annuity that earns 5.1%, compounded quarterly, what payments will it provide at the end of each quarter for the next 4 1 2 years

Answers

Answer:

C = $ 5064.61

Explanation:

You are given the present value of an annuity   PV = 81 000

5.1 %   is .051 in decimal form  

    quarterly, this is  i =  .051/4  interest per period (3 months)

4 1/2 years is    n = 18 periods

The equation to use is  ( you just have to look these up.....there are many different situations)

PV = C * {  (1-(1+i)^-n) / i }

Plugging in the above numbers results in:

C = $ 5064.61

Suppose you are eating nachos. The total utility after the fourth, fifth, sixth, and seventh nachos are, respectively, 50, 86, 106, and 120. The marginal utility of the sixth nacho is

Answers

The overall utility after the fourth, fifth, sixth, and seventh nachos is 50, 86, 106, and 120, respectively. The marginal utility of the sixth nacho is 20.

The marginal utility of the sixth nacho is the additional utility or satisfaction gained by consuming the sixth nacho, compared to consuming the fifth nacho.

To calculate the marginal utility, we can use the formula:

Marginal Utility = Total Utility (n) - Total Utility (n-1)

where n is the nacho number in question.

So, the marginal utility of the sixth nacho is:

Marginal Utility = Total Utility (6) - Total Utility (5)

= 106 - 86

= 20

Marginal utility is a fundamental concept in economics that refers to the additional satisfaction or utility gained from consuming one additional unit of a good or service. It is based on the principle of diminishing marginal utility, which states that as more units of a good are consumed, the additional satisfaction gained from each additional unit will eventually decrease.

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If you are late paying your bill, what is the impact on your annual fee?

Answers

Answer:

It will most likely increase

Explanation:

The impact of late paying the bill is that the bill payment would likely to increase with the amount of interest.

What is bill?

A bill is defined as an invoice that is received from a supplier that specifies the amount due by the recipient. For trade payables, this is the primary source document.

If the recipient is not paid the amount of the bill or paid the bill after4 the expiration of due date of the bill, then the amount of bill increased from the date of bill up to the payment.

Therefore, the late payment of bill would increase the amount of interest.

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_______________ is not a benefit of promoting a work environment in which employees are encouraged to act ethically.

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The employees' tendency to act in a manner that seems ethical to them will be suppressed and instead they will act in a manner that will protect them from punishment is not a benefit of promoting a work environment in which employees are encouraged to act ethically.

What is an ethical behavior in the work place?

This is the term that is used to refer to all of the behaviors of the firm that is capable of helping the firm to grow if all of the people working there are able to act in ways that are considered as moral and responsible in a sociable way.

Hence we can say that the employees' tendency to act in a manner that seems ethical to them will be suppressed and instead they will act in a manner that will protect them from punishment is not a benefit of promoting a work environment in which employees are encouraged to act ethically.

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On January 2, 2020, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $10.00 per share, and represents a 30% ownership stake. Big Bad Company made $450,000 of net income in 2020, and paid dividends to All Good Company of $40,000 on December 15, 2020. Big Bad Company's stock was trading on the open market for $15.50 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole number (no cents).

Answers

Answer:

$155,000

Explanation:

Calculation to determine the book value of the investment that should be reported at year end by All Good Company

Initial investment (6,000* $10.00 per share) $60,000

Add: Net income ($450,000*30%) $135,000

Less: Dividend ($40,000)

Ending balance of investment $155,000

($60,000+$135,000-$40,000)

Therefore the book value of the investment that should be reported at year end by All Good Company is $155,000

The book value of the investment that should be reported at year-end would be $155,000 by All Good Company.

What is the calculation of the book value of the investment?

The initial investment is derived as;

\(6,000* 10.00\\=60,000\)

Now, net income would be;

\(450,000*0.30\\=135,000\)

The Dividend is given as $40,000, which would compute the ending balance of investment as;

\(60,000+135,000-40,000\\=155,000\)

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Any transaction in which a new life policy or annuity is to be purchased, and the producer knows, or should know, that existing contract(s) will be: lapsed, forfeited, surrendered, terminated, reduced in value, amended with a reduction in benefit or term, have a reduced cash value, or is subjected to borrowing, is best known as a __________.

Answers

Answer:

Replacement

Explanation:

The transaction that related to the new policy or annuity that to be buy and the producer aware that the last contract should be lapsed, terminated or there is a decrease in value that amends with the decrease in the benefit with respect to the borrowing so this we called as the replacement that means here we replace the policy with the new one

can someone help me with this please.

Answers

There’s no image I think u forgot to insert it

Answer:

sure

Explanation:

no image

Which of the following is an example of a worker who has work/life balance
conflicts?
O A. A woman refuses to answer emails from the office when she is
not working
B. A man has missed all his daughter's ball games because he works
too much.
C. A woman has her office emails forwarded to a coworker while on
vacation.
D. A man receives notifications when he gets a new email at the
office,

Answers

Answer:

A man has missed all his daughter's ball games because he works

too much.

Explanation:

seems like it

Answer:

A man has missed all his daughter’s ball games because he works too much

Explanation:

A p e x

How would a Keynesian Economist use Fiscal Policy to fight a Recession? Please do not write about Monetary Policy here, only Fiscal Policy.
How would a Keynesian Economist use Fiscal Policy to fight

Answers

Fiscal policy is the use of government spending and taxation to influence the economy. A Keynesian economist would use fiscal policy to fight a recession by increasing government spending and/or cutting taxes. This would help to stimulate demand and boost economic growth.

The Keynesian economist would increase government spending in order to stimulate demand and provide employment to those who lost their jobs in the recession. This would help to boost the economy and reduce the unemployment rate. The increased spending could take the form of public works projects, such as infrastructure improvements, or investments in education and training programs.

This would also help to encourage businesses to invest in new projects and create jobs, which would further boost economic growth. In conclusion, Keynesian economists would use fiscal policy to fight a recession by increasing government spending and/or cutting taxes.

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Which of the following strategies would a company most likely use to increase customer satisfaction?
A) decreasing the variety of offered services
B) demarketing
C) lowering prices
D) "firing" unprofitable customers
E) limiting customer experiences with a brand

Answers

Lowering prices is the most likely strategy to increase customer satisfaction.

Decreasing the variety of offered services, demarketing, firing unprofitable customers, and limiting customer experiences with a brand are all strategies that are more likely to decrease customer satisfaction.

Lowering prices, on the other hand, can make a product or service more affordable and accessible to more customers, which can lead to increased customer satisfaction.

Here are some reasons why lowering prices can increase customer satisfaction:

It can make a product or service more affordable for customers.

It can make a product or service more competitive in the marketplace.

It can signal to customers that the company is value-oriented.

It can encourage customers to try new products or services.

Of course, lowering prices is not always the best way to increase customer satisfaction. In some cases, it can lead to decreased profits or a loss of quality. However, when done correctly, lowering prices can be a very effective way to improve customer satisfaction.

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abc and xyz agree to maximize joint profits. However, while ABC produces the agreed upon amount, XYZ breaks the agreement and each produce 5 more than agreed upon, how much less profit does each make

Answers

Answer:

The answer is "$ 140".

Explanation:

The company produces the quantity MR = MC and if there is no quantity MR = MC, the amount throughout the case MR is just greater and closest to MC to maximize profit.

Here MR = marginal income and marginal cost =MC

MR =\(\frac{Overall \ sales \ change}{Quantity\ shift}\)

In the above table, we could see that the amount MR = MC = 8 isn't available. Thus it produces the amount where the MR

is only larger but nearest to MC.

25 unit MR =\(\frac{TR \ change}{Quality \ change}\)

\(= [TR (when \ Q = 25) -TR \frac{(when \ Q = 20)]}{(25 - 20)}\)

\(= \frac{(450 - 400)}{5}= 10\)

(Minimum and superior to MC)

MR of 30 units\(=\frac{(480 – 450)}{(30–25)}=6 <8 = MC\), similarly MR of 30 units.

Consequently, 25 units were produced and 12.5 units were produced.

Currently, XYZ breaks the agreement and produces three more so thus maximum quantity produced on a market = 25 + 5 = 30 and through the above table they see which if quantity = 30, price = 16.

XYZ produces 12.5 + 5 = 17.5 output from 30 units.

Cost Total = TVC + TFC

Total TVC = Total Cost for Variable TFC = Maximum Cost of TFC = 0.

If MC is stable, TVC = MC \(\times\) Q = 8 \(\times\) q, where Q = exposed to the real produced and XYZ produces 17.5 in this case.

Total expenditure (TC+) is TVC = TFC = 8 \(\times\) 17.5.

Take control = TR - TC = TC = 16 \(\times\) 17.5 - 8 \(\times\) 17.5 = 150.

So the business XYZ is profiting = 140

Personality traits that you might need to improve include:


disruptive

agreeable

empathetic

disrespectful
i think its b and c but im not sure

Answers

Answer:

b

Explanation:

being agreeable is positive trait, the others are not

Answer:

The only one that is a good one

Explanation:

Imagine that you performed a nail enhancement on a client and made a mistake—you cut living skin and injured them, you applied tips that were too wide or narrow, you soaked their hands too long in acetone, etc. How would you handle a situation like this that involved a disgruntled, injured, or very upset client? What would you do to try and appease the client, fix your mistake, and avoid losing future business from this client?

Answers

Answer: Personally I would offer a refund on the nails that they are currently getting, and or giving them a free nail appointment next time they come and make sure that all things are clean safe and ready to use for him/her next time him/she comes

Explanation:

A very large company would be most likely to have a(n)
Blank its accounting department.
at the head of

Answers

Answer:

manager or head of accounting that makes the most sense to me

Explanation:

1. Despite the expense, why might a business choose to mail a catalog?​

Answers

Answer:

Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.

A new business has total sales of $14,000, applied $1,350 in merchandise discounts, and had returns of $234. Calculate the business's total net sales.

Answers

Answer:

$12,416

Explanation:

Applied merchandise discounts mean discounts issued.

The net sales will be total sales minus merchandise discounts applied minus returns.

Net sales = total sales - ( discounts + returns)

Net sales = $14,000 - ( $1,350 + $234)

Net sales = $14,000 - $1,584

Net sales = $12,416

This is a case study adopted from the book of Crispina R. Corpuz. "Reyes Department Store" Based on the review of the store, Nicole, the general manager concluded that one of the first things she has to attend involves developing the job description of her store supervisor. During her first few weeks on the job, Nicole found herself asking one of her supervisors, Jet, why was he violating what she knew to be part of the company policies and procedures. Jet’s only response was that he was not aware of that policy and was not aware it was part of his job. Nicole knew that a job description, along with a set of standards and procedures that specify what was to be done and how to do it, will go a long way toward alleviating the problem. Discuss the process that Nicole should follow to solve this problem.

Answers

In order to Nicole to solve this problem, she must reevaluate the job description and company policies and procedures, and then include certain specifications that will make employees more aware of their roles within the company.

Nicole is the general manager of the Reyes Department Store, so she acted correctly when she noticed inconsistent conduct by one of her supervisors and identified the problem.

She then realized that she should carry out a job description along with standards and procedures that specify what should be done and how to do it.

A job description is a document that specifies the responsibilities and activities of each organizational role.

Its objective is to adapt professionals to their work position according to their profile and optimize people management, creating greater standardization of processes and agility in decisions.

Therefore, job descriptions must always be monitored and revised so that new needs are included and so that employees can carry out their role effectively.

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university researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. if there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced? group of answer choices they are equal. the equilibrium quantity is greater than the socially optimal quantity. the equilibrium quantity is less than the socially optimal quantity. there is not enough information to answer the question.

Answers

If there are no subsidies, the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced is that the equilibrium quantity is less than the socially optimal quantity. Option C is correct.

Based on the description given, the equilibrium quantity of university research is likely to be less than the socially optimal quantity. This is because university research creates a positive externality, meaning that the benefits of the research extend beyond the individual researcher or institution conducting it.

As a result, the market will tend to underproduce research because the private benefit to the researcher or institution is less than the social benefit to society as a whole.

In the absence of subsidies, the market equilibrium quantity will be determined by the intersection of the demand for research and the private cost of producing it. This equilibrium quantity is likely to be lower than the socially optimal quantity, which takes into account the full social benefit of the research.

Therefore, the correct answer is C. The equilibrium quantity is less than the socially optimal quantity.

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If a product costs £80 to manufacture and a 15% mark-up is added, the price at which the product will be sold is:​

Answers

Answer:

92£

Explanation:

80 * 1.15 = 92

What is the effect on present value when net income increases?a. conformityb. depreciationc. increasesd. decreases

Answers

When net income increases, the effect on present value can be significant. Present value is the value of an investment or asset today, and it is calculated by discounting future cash flows back to their current value. When net income increases, it can lead to an increase in future cash flows, which in turn can increase the present value of the investment or asset.



The increase in net income can also lead to an increase in the discount rate used to calculate the present value, as investors may perceive the investment as less risky or more valuable. This can further increase the present value of the investment.

On the other hand, if net income decreases, the present value of the investment or asset may decrease as well, as future cash flows may be lower, and the investment may be perceived as riskier.

In summary, when net income increases, the present value of an investment or asset is likely to increase, while a decrease in net income may lead to a decrease in present value. It is important to consider net income when calculating present value, as it can have a significant impact on the value of an investment or asset.

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A company that is organized by function will group its employees into teams based on what?

Answers

This organisational structure divides workers into functional areas according to their areas of competence. These functional categories frequently correspond to phases of the value chain like operations, R&D, and marketing and sales.

What is meant by organisational structure?The way tasks are assigned, coordinated, and managed in order to achieve organisational goals is determined by the organisational structure. The foundation upon which standard operating procedures and routines are built is provided by organisational structure, which influences organisational action. Functional, multi-divisional, flat, and matrix organisational structures are the four different types.An organisational structure is a framework for managing specific tasks in order to accomplish a strategic goal. All of these activities have guidelines, expectations, and roles.An organization's structure serves as a tool for its members to carry out their duties in an effective and timely manner as well as for the organisation as a whole to achieve its goals and objectives. In addition to assigning employees their specific work duties and responsibilities, an organisational structure aids management in coordinating and managing operations.

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Consider a country that at the start of 2016 has initial Money Supply of $18 Billion, 9 Billion total items available to bought and sold in a year, GDP of $108 Billion and an average Price Per item of $12. What is the Velocity of Money in 2016 for this country: 4 12 6 For Questions 25 and 26, Consider a country that at the start of 2016 has initial Money Supply of $18 Billion, 9 Billion total items available to bought and sold in a year, GDP of \$108 Billion and an average Price Per item of $12. If the Central Bank of this country raised the Money Supply to $24 Billion, the Average Price per Item will become: 18 16 24

Answers

The velocity of money in 2016 for the given country is 9. The average price per item in this scenario is still $12.

The velocity of money is a measure of the number of times the average dollar is spent on goods and services in a given time period. It is calculated by dividing the GDP (in this case, $108 billion) by the money supply (in this case, $18 billion). In 2016, the velocity of money is 6 (108/18), indicating that, on average, each dollar was spent 6 times throughout the year.

In the second scenario where the Central Bank raises the money supply to $24 billion, we can calculate the new average price per item. The average price per item is determined by dividing the GDP (still $108 billion) by the total number of items available to be bought and sold (still 9 billion). With the new money supply of $24 billion, the average price per item becomes $12 (108/9), remaining unchanged. Therefore, the average price per item in this scenario is still $12.

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Features of wealth definition

10

Answers

Features of wealth :-

The following are the characteristics of wealth: Increased stress on wealth: This definition presented considerable value to the nature of money in the economy. According to some economists, the economic success of any country depends on the accumulation of wealth. Examining the Nature of Money: According to this definition, economics is also divided with the investigation of the circumstances that led to the creation of wealth. Research on the Nature of Wealth: According to this definition the wealth of a nation consists only of physical products. Economic Man: This theory states that an economic man converges on his personal goal, that is to earn money Hope it helps.......STAY SAFE, STAY HEALTHY AND BLESSED.HAVE A GOOD DAYTHANK YOU#Jennifer

The following is true when considering writing a check or using a debit card:

a promissory note is more valuable than receiving payment via a debit card

it is always better to write a check or use a debit card than to send money via an electronic
funds transfer (EFT)

it is advisable to write a check after the grace period ends on your credit card bill

it is necessary to maintain a positive bank account balance for debit card transactions to
successfully go through

Answers

The statement that is true with regard to debit card is that it is necessary to maintain a positive bank account balance for debit card transactions to successfully go through. Thus, option fourth is correct.

What is debit card?

Debit cards are plastic cards issued by banks to enable electronic money transfers. They function as both an ATM card and a credit card. However, it varies from a credit card in that payment is made by the bank.

A debit card, unlike a credit card, is directly linked to your bank account, allowing you to pay for your purchase or make an ATM withdrawal online.

For debit card transactions to be successful, a positive bank account balance must be maintained. However, in the case of credit card it not essential to do so.

Therefore, it can be concluded that option fourth is correct.

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PA13-5 (Static) Interpreting Profitability, Liquidity, Solvency, and P/E Ratios (LO 13-4, LO 13-5) Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $34.5 billion each year while annual sales of PepsiCo products exceed $66 billion. Compare the two companies as a potential investment based on the following ratios as reported by csimarket.com for the twelve months ended September 27, 2019: Ratio Coca-Cola PepsiCo a. Gross profit percentage 61.304 55.00 b. Net profit margin 22.70 18.804 C. EPS $ 1.66 $ 8.82 d. Inventory turnover ratio 4.20 8.30 e. Current ratio 0.62 0.95 1. Debt-to-assets 0.76 0.82 9. P/E ratio 32.50 15.50 Required: 1. For each ratio listed, indicate whether it would be used to compare profitability, liquidity, or solvency, or whether it is not applicable (NA) to comparing companies.

Answers

The ratios listed can be categorized as follows: a, b, and c are applicable to comparing profitability; d and e are applicable to comparing liquidity; f is applicable to comparing solvency; and g is applicable to comparing profitability and market valuation.

Let's analyze each ratio and determine whether it would be used to compare profitability, liquidity, or solvency, or if it is not applicable (NA) to comparing companies:

a. Gross profit percentage: This ratio compares the gross profit generated by a company to its revenue. It is used to assess profitability. A higher gross profit percentage indicates better profitability, as it implies the company is able to generate more profit from its core operations. Therefore, it is applicable to comparing profitability.

b. Net profit margin: This ratio measures the net profit generated by a company as a percentage of its revenue. It is also used to assess profitability. A higher net profit margin indicates better profitability, as it signifies that the company is able to generate more profit after accounting for all expenses. Therefore, it is applicable to comparing profitability.

c. EPS (Earnings per Share): This ratio represents the portion of a company's profit allocated to each outstanding share of common stock. It is used to evaluate profitability. A higher EPS indicates higher profitability, as it reflects the amount of earnings attributable to each share. Therefore, it is applicable to comparing profitability.

d. Inventory turnover ratio: This ratio measures how efficiently a company manages its inventory. It is used to assess liquidity. A higher inventory turnover ratio suggests that inventory is sold quickly, indicating better liquidity. Therefore, it is applicable to comparing liquidity.

e. Current ratio: This ratio compares a company's current assets to its current liabilities. It is used to assess liquidity. A higher current ratio indicates better liquidity, as it suggests that the company has enough current assets to cover its short-term obligations. Therefore, it is applicable to comparing liquidity.

f. Debt-to-assets: This ratio compares a company's total debt to its total assets. It is used to assess solvency. A higher debt-to-assets ratio indicates higher leverage and potential financial risk, as it signifies that a larger portion of the company's assets is financed by debt. Therefore, it is applicable to comparing solvency.

g. P/E ratio: This ratio compares a company's stock price to its earnings per share. It is used to evaluate profitability and market valuation. A higher P/E ratio implies that investors have higher expectations for future earnings growth and are willing to pay a premium for the stock. Therefore, it is applicable to comparing profitability and market valuation.

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In order to summarize the categories for each ratio:

Profitability: Gross profit percentage, Net profit margin, EPS, P/E ratioLiquidity: Inventory turnover ratio, Current ratioSolvency: Debt-to-assets

How to explain the information

Gross profit percentage is the ratio measures the profitability of a company by comparing the gross profit to sales. It indicates how efficiently a company generates profit from its sales. Therefore, it falls under the profitability category.

bNet profit margin shows the profitability of a company by comparing the net profit to sales. It indicates the portion of each dollar in sales that results in profit. It is also a profitability ratio.

EPS (Earnings per Share) represents the amount of earnings available to each outstanding share of common stock. It is used to evaluate the profitability of a company on a per-share basis. It falls under the profitability category.

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Bernie works for quickwell lending and accesses several lenders to find a loan product that works best for his clients. what is bernie?

Answers

Bernie is a mortgage broker who accesses several lenders to find a loan product that works best for his clients.

A mortgage broker is a person who acts as an intermediary between the person who offers the loans and someone who wants to buy real estate. so they help their clients to obtain the best rate of interest on their loans. In this way, the client will be able to obtain the best terms and rates to meet their financial needs.

A mortgage broker can help us find the right mortgage. This helps the client in saving time, money, and effort. A mortgage broker may have better and more access to lenders than we have. The only factor to be kept in mind is the charges that these mortgage brokers may take from us.

So a mortgage broker is a link between financial institutions and individuals. The mortgage broker works with both to get the amount of loan sanctioned and at the best rates. They also verify all the paperwork necessary for obtaining the loan. So as Bernie works for finding a loan that is the best for the client he is a mortgage broker.

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Why is compound interest preferable to simple interest when investing?
оооо
Compound interest pays at least double the interest on the principal during each month.
Compound interest is paid by the week or by the month, not only once during a year.
Compound interest is based on the entire principal, not just a percentage of the principal.
O Compound interest pays interest both on the principal and the interest earned in each period.

Answers

Answer:

O Compound interest pays interest both on the principal and the interest earned in each period.

Explanation:

Compound interest is preferred as it measures the interest on the principal amount and the accrued interest. In the compounding interest, the interest i.e. earned should be added to the principal in order to create the new principal amount. The interest earned at the closing of every year should be more than the last period as the principal amount rises at the starting of the period

Also, the interest earned via the compound interest should be grown much faster as we compared to the fixed rate interest

Therefore the last option is correct

Answer:

d. Compound interest pays interest both on the principal and the interest earned in each period

Explanation:

_ of product line refers to the variety of different items a store carries, such as appliances and books. Multiple choice question. Variety Breadth Spread Depth

Answers

The term that refers to the variety of different items a store carries is "Variety".

Variety, also known as product assortment, refers to the number of different product lines that a store carries. It includes the range of products within each line, such as colors, sizes, and styles.

Variety can help a store appeal to a wider customer base, as it allows for more options and choices. For example, a store that sells appliances and books has a greater variety than a store that only sells appliances.

Offering a variety of products can also help a store differentiate itself from competitors and create a unique shopping experience for customers.

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If a country wants to decrease its national debt as quickly as possible, what
kind of budget will it most likely create?
A. One that decreases taxes and decreases spending
B. One that decreases taxes and increases spending
C. One that increases taxes and decreases spending
D. One that increases taxes and increases spending

Answers

Most definitely and without a doubt C

If a country wants to decrease its national debt, one that increases taxes and decreases spending.

What is the national debt?

The national debt is the debt of the country.

It is the money the country borrowed from the World Bank.

Manipulation in the interest rates and lower interest rates helps in lowering the national debt.

Thus, the correct option is C. One that increases taxes and decreases spending

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how companies collude in South Africa

Answers

Collusion among companies in South Africa is an illicit practice of working together, often in secret, to increase their profits at the expense of consumers. Collusion typically takes the form of price fixing, where businesses agree to set prices at an artificially high level, or bid rigging, where companies agree to submit inflated bids for contracts.

Companies can collude in various ways in South Africa. First, firms can engage in cartel agreements, where they agree on pricing and output. This results in reduced competition and higher prices. Second, firms can engage in bid rigging, where they collude to manipulate the tendering process. This results in inflated contract prices and reduced competition. Third, firms can engage in market sharing, where they agree to divide up the market among themselves. This results in reduced competition, increased prices, and less choice for consumers.
Collusion is illegal in South Africa under the Competition Act 89 of 1998. The Act aims to promote competition in the South African market and prevent anti-competitive behavior. Companies that are found guilty of collusion can face hefty fines and legal action. Additionally, individuals who are found guilty of collusion can be imprisoned for up to 10 years.
In conclusion, collusion among companies in South Africa is a serious problem that reduces competition and harms consumers. It is important for companies to compete fairly and abide by the Competition Act to ensure a level playing field for all businesses and a fair deal for consumers.

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