« previous next »

Author Question: The financial manager is concerned with A) minimizing the chance of insolvency. B) maintaining ... (Read 76 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
on: Jul 10, 2018
The financial manager is concerned with
 
  A) minimizing the chance of insolvency.
  B) maintaining high levels of profitability.
  C) striking a balance between holding too much and too little cash.
  D) all of the above

Question 2

Josephine is seeking to expand her rare stamp collection. Each year, rare stamps increase in price at a three percent rate. She believes that if she invests her money for one year, she should be able to buy 16 stamps for what 15 stamps would cost today.
 
  What is her real interest rate (or reward for waiting)?
  A) Her real interest rate is about 4.23.
  B) Her real interest rate is about 5.33.
  C) Her real interest rate is about 6.33.
  D) Her real interest rate is about 6.67.


Jossy

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

Answer: D
Explanation: D) The real interest rate or reward is given by - 1 where FV = 16, PV = 15 and
n = 1. We have: real interest rate or reward = - 1 = 0.0667 or 6.67.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Ethnic Differences in Financial Support for College Based on a sample of 304 emerging adults aged 2 Ethnic Differences in Financial Support for College Based on a sample of 304 emerging adults aged 2
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
Manager's Responsibilities to Employee and Physician-Employer Manager's Responsibilities to Employee and Physician-Employer
Medical assistant extern clarifying externship issues with the office manager. Medical assistant extern clarifying externship issues with the office manager.
Financial Management 4th Edition (Cengage) Financial Management 4th Edition (Cengage)
Video: Requirements for nervous signals

For a complete list of videos, visit our video library