What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,250?

A. $77.19
B. $81.25
C. $85.31
D. $89.58
E. $94.06


Answer: B

Business

You might also like to view...

If Tommy's Subs Company has a current ratio of 2.5 and current assets of $195,000, the amount of working capital is:

a. $117,000 b. $330,000 c. $380,000 d. $78,000

Business

The respondents' ability to remember an event is influenced by all of the following except________

A) the event itself B) the time elapsed since the event C) the presence or absence of events that would aid memory D) where you were when the event occurred

Business

In an ABC analysis, class ________ SKUs, which typically make up about ________ % of the SKUs, account for only about 15% of the dollar usage

Fill in the blanks with correct word

Business

A firm with a low return on total assets can improve its return on equity, all else remaining the same, by ________

A) increasing its debt ratio B) increasing its total asset turnover C) decreasing its debt ratio D) decreasing its total asset turnover

Business