Determine the Equivalent Single Rate of Discount for the Following

question 111

Multiple Choice

Determine the equivalent single rate of discount for the following series of discounts. Discount of 17.25%, 14.7% and 16.37%.

• A) 40.969%
• B) 42.838%
• C) 41.223%
• D) 41.162%
• E) 43.084%

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Definitions:

Inflation

The tempo at which the general cost of goods and services rises, weakening the purchasing strength.

Accruals

The accounting practice of recording revenues and expenses when they are incurred, regardless of when cash transactions happen.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and ability to cover short-term liabilities.

Dividend Yield

The ratio of a company's annual dividends per share to its current share price, indicating how much an investor gets back relative to the share price.