« previous next »

Author Question: Managing a firm's cash outflows through use of a zero balance account system offers all but which ... (Read 86 times)

lbcchick

  • Hero Member
  • *****
  • Posts: 550
on: Jul 10, 2018
Managing a firm's cash outflows through use of a zero balance account system offers all but
  which of the following benefits?
 
  A) reduction of excess balances in outlying accounts
  B) higher rate of return on invested funds
  C) centralized control over disbursements
  D) reduction of management time spent on superficial cash management activities

Question 2

Consider trying to value a company called Etail.com on January 1. It pays dividends annually on Dec. 31. Yesterday's dividend was 1.
 
  Dividends are expected to grow for the next 2 years at 10 and then settle down to a long-run growth rate of 5 in perpetuity. Because of the initial riskiness of the company, investors required a 20 rate of return over the first 2 years, but only a 12 rate of return thereafter. What is the fair price for the stock today, January 1?
  A) 13.76
  B) 36.77
  C) 14.36
  D) 12.75
  E) 14.96

Question 3

What is the EAR if the APR is 10.52 and compounding is daily?
 
  A) Slightly above 10.09
  B) Slightly below 11.09
  C) Slightly above 11.09
  D) Over 11.25


ApricotDream

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

B

Answer to Question 2

Saved me massive time.

Answer to Question 3

Answer: C
Explanation: C) Using the EAR formula, we get 11.0916 or slightly above 11.09.
EAR = (1 + APR/m)m -1 = (1 + 0.1052/365)365 -1 = 11.0916.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

The male reproductive system. The male reproductive system.
The acetic acid–acetate pair as a buffer system The acetic acid–acetate pair as a buffer system
Comparison of Principles of Abstinence-Only and Comprehensive Sex Education in the Public School Sys Comparison of Principles of Abstinence-Only and Comprehensive Sex Education in the Public School Sys
Write-It-Once System Write-It-Once System
Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact. Basic two-handed kneading. Tissues are lifted with the whole hand in firm contact.
Action of the DNA uracil repair system Action of the DNA uracil repair system
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library