« previous next »

Author Question: Managing a firm's cash outflows through use of a zero balance account system offers all but which ... (Read 82 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?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Endocrine system. Endocrine system.
Ivanpah Solar Electric Generating System Ivanpah Solar Electric Generating System
Endomembrane system Endomembrane system
Receptors in the autonomic nervous system: (a) sympathetic division; (b) parasympathetic division Receptors in the autonomic nervous system: (a) sympathetic division; (b) parasympathetic division
The Digestive System The Digestive System
A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ... A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ...
Video: Attention Deficit Disorder (ADD)

For a complete list of videos, visit our video library