« previous next »

Author Question: The financial manager is concerned with A) minimizing the chance of insolvency. B) maintaining ... (Read 17 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?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

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
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
Maintaining Physiological Balance Maintaining Physiological Balance
In this photo opportunity, Phillies manager Ben Chapman refused to shake Jackie Robinson’s hand. ... In this photo opportunity, Phillies manager Ben Chapman refused to shake Jackie Robinson’s hand. ...
Chinese officials have become concerned about the lopsided gender ratio that their “one couple, ... Chinese officials have become concerned about the lopsided gender ratio that their “one couple, ...
The Economics of Money, Banking and Financial Markets, Business School Edition The Economics of Money, Banking and Financial Markets, Business School Edition
Video: Stroke volume

For a complete list of videos, visit our video library