SSUM(B2:B6) Profit 1 Year 2 2010 $100,000.000 3 2011 $105,000.000 4 2012 $100,00

Question

SSUM(B2:B6) Profit 1 Year 2 2010 $100,000.000 3 2011 $105,000.000 4 2012 $100,000.000 5 2013 $110,000.000 6 Total 49. For which of the following reasons is cell B6 blank? (A) Nothing has been entered into cell B6. (B) Manual calculation has been turned on, and the cell has not been recalculated (C) The function contains a circular reference (D) The function is still being edited, and Enter has not been pressed 50. A preferred stock pays an annual dividend of $2 per share in perpetuity. Assume the discount rate is always 5% per year. What is the present value of this perpetuity? (A) $10 (B) $20 (C) $40 D) Infinity

Explanation / Answer

49.C.The function contains a circular reference.

the formula has reference to B6, so it can be said the function has circular reference.

50.C.$40.

present value of perpetuity = amount received in perpetuity / discount rate

here,

discount rate = 5% =>0.05.

=>$2 / 0.05

=>$40.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.