Write the Word or Phrase That Best Completes Each Statement

question 35

Multiple Choice

Write the word or phrase that best completes each statement or answers the question.
-An airline with two types of airplanes, and has contracted with a tour group to providetransportation for a minimum of 400 first class, 750 tourist class, and 1500 economy class passengers. For acertain trip, airplane costs $10,000 to operate and can accommodate 20 first class, 50 tourist class, and110 economy class passengers. Airplane costs $8500 to operate and can accommodate 18 first class, 30tourist class, and 44 economy class passengers. How many of each type of airplane should be used inorder to minimize the operating cost?

Determine the impact of interest rate changes on the present value of future cash flows.

Identify characteristics and calculations associated with perpetuities.

Calculate the present and future values given different compounding intervals and rates.

Determine the equivalence of cash flows at different time periods using interest rates.

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Definitions:

Cumulative Dividend

A type of dividend that accumulates if not paid in one period and must be satisfied before dividends can be distributed to common shareholders.

Preferred Stock

A class of ownership in a corporation with a fixed dividend payout, which takes precedence over common stock dividends.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated.

Dividends

When a corporation distributes its profits to the shareholders, often as profit payments.