Answer:
Present value = $9.7150 rounded off to $9.72
Explanation:
Using the dividend discount model, we calculate the price of the stock today. It values the stock based on the present value of the expected future dividends from the stock. To calculate the present value of the next four dividends, we will use the following formula,
Present value = D1 / (1+r) + D2 / (1+r)^2 + D3 / (1+r)^3 + D4 / (1+r)^4
Where,
r is the required rate of returnPresent value = 3 / (1+0.14) + (3+0.25) / (1+0.14)^2 +
(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4
Present value = $9.7150 rounded off to $9.72
Their upcoming four-year dividends' current value is $9.7150, rounded to $9.72, is the present value.
The calculation is as follows:
We determine the stock's current price using the dividend discount methodology. Based on the current value of anticipated future dividends from the shares, the stock is valued. We will use the following formula to get the present value of the following four dividends:
Present value is equal to D1 / (1+r), D2 / (1+r), D3, and D4 / (1+r).
Where,
The necessary rate of return is r.
Value in the present is equal to 3 / (1+0.14) + (3+0.25) / (1+0.14)2 +
(3+0.25+0.25) / (1+0.14)^3 + (3+0.25+0.25+0.25) / (1+0.14)^4
Rounding up to $9.72, the present value is $9.7150.
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bruh . (i had to type an extra couple of words because it wouldnt let me send it) im just trying to make people laugh during these tough times. brainly please do not take this down. Thank you remember to social distance, wash your hands, wear masks, be safe, but most importantly have an amazing week!
Answer:
oki thank you!!
Explanation:
the answer to life the universe and everything is 42
A firm has an Inventory turnover (IT) of 5 times a year on a cost of goods sold (COGS) of $800,000. If the firm improves the inventory turnover to 8 times a year while the COGS remains the same, which of the following statements is true?
a $100,000 is additionally invested in purchasing stock.
b. $160,000 is released into the working capital.
C. $60,000 is additionally invested into purchasing stock
d. $60,000 is released into the working
Answer:
d. $60,000 is released into the working
Explanation:
A high inventory indicates that a company sells its stock many times in a year. It means its costs of managing inventory decreases.
The inventory turnover ratio is calculated as below
=Cost of goods sold/ average inventory
If COGS = $800,000 and the inventory turnover ratio =5,
the average inventory will be
=$800,000 /5
=$160,000
With a turnover of 8, and COGS remain $800,000, average inventory will now be
=$800,000/8
=$100,000
The average inventory will decrease to $100,000 from $160,000 previously.
$60,000 will be released to working capital.
For a period during which the quantity of product manufactured exceeds the quantity sold, operating income reported under absorption costing will be smaller than operating income reported under variable costing. True False
Answer:
False
Explanation:
Operating income reported under absorption costing will be smaller than operating income when quantities of products manufactured are less than the quantities sold (Sales > Production). This is because Fixed costs deferred in inventory will be falling and the costs of sales in absorption cost will be rising.
You make $40,000 per year. You have been offered a promotion and a $5,000 raise per year. Your average federal income tax rate will go up from 10% to 15% per year. Should you take the new job and the raise?
Answer:
Yes, Accept the new Job and raise
Explanation:
With the old Job, the annual income is $40,000 and a tax rate of 10%.
The annual tax obligation is 10% of $40,000
=10/100 x $40,000
=0.1 x $40,000
=$4,000
Annual take home is $40,000 -$4,000
=$36,000
With the new salary, the tax obligation will be
Tax rate=15%
Salary =$45,000
=15/100 x $45,000
=0.15 x $45,000
$6,750
The new take home pay is $45,000- $,6750
=$38,250
With the new Job, the take-home pay increases from $36,000 to $38,250.
The new Job and raise should be accepted.
in a market segment approach, which statement below dose not apply
In planning for your career after high school you should...
I need serious help I NEED to pass this test please HELP
D I think I'm only in year 7 haha
Digital Fruit is financed solely by common stock and has outstanding 40 million shares with a market price of $20 a share. It now announces that it intends to issue $310 million of debt and to use the proceeds to buy back common stock. There are no taxes. a. What is the expected market price of the common stock after the announcement
Answer:
Digital Fruit
The expected market price of the common stock after the announcement is:
$20 per share.
Explanation:
Outstanding number of shares = 40 million
Market price of outstanding shares = $20 a share
Total market capitalization = $800 million
Debts introduced = $310 million
Market capitalization after the debt issue = $490 million ($800 - 310 million)
Number of shares bought back = $310 million /$20 = 15,500,000
Outstanding number of shares after the buy-back = 40 million minus 15.5 million
= 24,500,000 shares
Expected market price of the common stock after the announcement
= $490,000,000/24,500,000
= $20 per share
Which of the following would be part of a financial managers investment decision?
a.
Raising money using equity finance.
b.
Spending money on Capital Expenditure.
c.
Spending money on revenue expenditure.
d.
Borrowing Funds.
Answer:
C
Explanation:
You are a real estate owner in Bloomington Indiana and you have rented a house to students. You expect to make 6% per year on this leasehold investment. The terms of the lease are for 24 months and the rent is due at the beginning of the month. Your savvy renters are Kelley students and they request that the rent be paid, instead, at the end of the month. How much more will the investor receive as a result of payments at the beginning of the month rather than the student's proposed payments at the end of the month over the entire life of the lease?
Answer:
The present value of the contract is 0.5% higher if the rent is paid at the beginning of the month. That is equal to $11.28 for every $100 of rent.
Explanation:
if the rent is paid at the beginning of the month, the present value of the lease contract will be:
PV = monthly rent x PV annuity due factor
we are not given the monthly rent, but we know the PV annuity due factor for 0.5% and 24 periods = 22.67568
if the rent is paid at the end of the month, the PV = monthly rent x PV ordinary annuity factor
the PV ordinary annuity factor, 0.5%, 24 periods = 22.56287
assuming that the rent is $100 (just to calculate a %), the PV of an annuity due = $2,267.57
the PV of an ordinary annuity = $2,256.29
the difference between them = [($2,267.57 / $2,256.29) - 1] x 100 = 0.5%
Your firm has the opportunity to buy a perpetual motion machine to use in your business. The machine costs $1,000,000 and will increase your profits by $75,000 per year. What is the internal rate of return?
Answer:
7.5%
Explanation:
A forever series formula for the interest rate is i = A / PV
Annual benefits = $75,000
Present value = $1,000,000
Thus, i = $75,000 / $1,000,000
i = 0.075
i = 7.5%
Therefore, the internal rate of return is 7.5%
You are the manager of a firm that sells its product in a competitive market at a price of $50. Your firm's cost function is C = 40 + 5Q2. The profit-maximizing output for your firm is
Answer: Q = 5
Explanation:
In a competitive market, the profit maximising quantity is the quantity at which Marginal Cost is equal to Marginal revenue.
In a competitive market, price is equal to marginal revenue so marginal revenue is $50.
Marginal cost would be the differential of the cost function;
= 40 + 5Q²
= (2 * 5) * Q
= 10Q
10Q = 50
Q = 50/10
Q = 5
You are graduating from college at the end of this semester and have decided to invest $ at the end of each year into a Roth IRA (a retirement investment account that grows tax free and is not taxed when it is liquidated) for the next years. If you earn percent compounded annually on your investment of $ at the end of each year, how much will you have when you retire in years? How much will you have if you wait 10 years before beginning to save and only make payments into your retirement account?
Answer:
the numbers are missing, so I looked for similar questions:
You are graduating from college at the end of this semester and have decided to invest $5,000 at the end of each year into a Roth IRA, (which is a retirement investment account that grows tax free and is not taxed when it is liquidated) for the next 45 years. If you earn 8 percent compounded annually on your investment of $5,000 at the end of each year, how much will you have when you retire in 45 years? How much will you have if you wait 10 years before beginning to save and only make 35 payments into your retirement account?
We have to determine the future value of an annuity:
FV = annual contribution x FV annuity factor
annual contribution = $5,000
FV annuity factor, 45 periods, 8% = 386.50562
FV = $5,000 x 386.505662 = $1,932.528
if you wait 10 years before starting to save, then the future value will be:
FV = annual contribution x FV annuity factor
annual contribution = $5,000
FV annuity factor, 45 periods, 8% = 172.3168
FV = $5,000 x 172.3168 = $861,584
N Corp has a variable cost per unit of $1.20, and the lease payment on the production facility runs $4,200 per month. N Corp sells the units at $4.60 and has depreciation equal to $225. What is the amount of units that N Corp needs in order to break-even
Answer:
1,301 units.
Explanation:
With regards to the above, we know that break even level is
= ( FC + Depreciation ) / Contribution margin
FC = $4,200
Depreciation = $225
Contribution margin = P - V, where P = $4.60 , V = $1.20
Therefore,
Break even level = ($4,200 + $225) / $4.60 - $1.20
Break even level = $4,425 / $3.40
Break even level = 1,301 units
Hence, the amount of units N corp needs in order to break even is 1,301 units
Walters manufactures a specialty food product that can currently be sold for $21.80 per unit and has 19,800 units on hand. Alternatively, it can be further processed at a cost of $11,800 and converted into 11,800 units of Deluxe and 5,800 units of Super. The selling price of Deluxe and Super are $31.20 and $19.80, respectively. The incremental income of processing further would be:
Answer:
$51,360
Explanation:
The computation of the incremental income of processing further is shown below:
Given that
Total sales unit before further processing is 19,800 units
And, its sale price per unit is $21.80
So, the total sales price is
= 19,800 units × $21.80
= $431,640
$483000
Now after processing, the sales revenue in both the deluxe and super is
= 11,800 units × $31.20 + 5,800 units × $19.80
= $368,160 + $114,840
= $483,000
So, the incremental net income after further processing is
= $483,000 - $431,640
= $51,360
Which diagram arranges the types of business organizations from the most complicated to start to the least complicated to start?
Answer:
C. Corporation- partnership - Sole Proprietorship
Explanation:
Corporation- partnership—Sole Proprietorship is the diagram arranges the types of business organizations from the most complicated to start to the least complicated to start. Hence, option C is correct.
What is partnership?Partnership is the deal between the two person or party to start the business, partnership can be legally registered or can also start without the partnership agreement.
In partnership the investment is invested by both the partners that and the profit and loss is divided into equally.
Thus, option C is correct.
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Contractionary monetary policy is designed to:
A. reduce long-term interest rates.
B. increase the available money supply.
C. reduce overall economic activity.
D. offer treasury securities for sale.
Contractionary monetary policy is designed to: C. reduce overall economic activity.
What is a monetary policy?A monetary policy is also referred to as a fiscal policy and it can be defined as the use of government expenditures (spending) and revenues (taxation), so as to influence macroeconomic conditions such as:
Aggregate Demand (AD)InflationEmployment within a country. The types of monetary policy.In Economics, there are two main types of monetary policy and these include the following:
Expansionary monetary policy.Contractionary monetary policy.Generally, a contractionary monetary policy is designed and adopted by the government to reduce overall economic activity in a particular country.
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reduce overall economic activity.
Identify five areas of concern where business standards apply
Answer:
The government regulates the activities of businesses in five core areas: advertising, labor, environmental impact, privacy and health and safety.
Consumer protection Via Advertising Restrictions. ...
Employment and Labor Protection. ...
Environmental Impact of Business. ...
Date Security and Privacy Protection. ...
Safety and Health.
what is the last step in finding a solution to a problem?
A. choose a solution and try it
B. ignore the problem and it will go away
C. think about ways to solve the problem
D turn the problem into a question
Answer: d
Explanation: hope it helps
Answer:
Choose a solution and try it.
Explanation:
I just finished this lesson and my answer was correct ;}
During a six month period, a department had planned sales of $75,000 and planned turnover of 2.6. Using the Basic Stock Method, determine the BOM stock for February, if planned sales for February are $10,500.
Answer:
the BOM stock is $26,846
Explanation:
The computation of the BOM stock for the feb month is shown below:
But before that following calculations need to be done
Average stock is
= net sales ÷ stock turnover
= $75,000 ÷ 2.6
= $28,846
Now the basic stock is
= Average stock - monthly sales
= $28,846 - ($75,000 ÷ 6)
= $16,346
And, finally BOM stock is
= Planned sales + basic stock
= $10,500 + $16,346
= $26,846
hence, the BOM stock is $26,846
Rosita purchased a bond for $991.23. She sold the bond for $1,003.42 after 6 months and earned a total return of 5.40% on this investment. Suppose this bond has semiannual interest payments, then what should be the coupon rate of it?
Answer:
The coupon rate of the bond should be 8.27%.
Explanation:
This can be calculated using the following formula:
Total return rate = (Selling price + [(Coupon rate * Face value) / 2] - Purchase price) / Purchase price ............ (1)
Where;
Total return rate = 5.40%, or 0.054
Selling price = $1,003.42
Coupon rate = ?
Bond face value = $1,000
Purchase price = $991.23
Substituting the values into equation (1) and solve for Coupon rate, we have:
0.054 = (1,003.42 + [(Coupon rate * 1,000) / 2] - 991.23) / 991.23
0.054 * 991.23 = 1,003.42 + [(Coupon rate * 1,000) / 2] - 991.23
53.53 - 1,003.42 + 991.23 = (Coupon rate * 1,000) / 2
41.34 * 2 = Coupon rate * 1,000
82.68 = Coupon rate * 1,000
Coupon rate = 82.68 / 1,000
Coupon rate = 0.08268, or 8.268%
Rounding to 2 decimal places, we have:
Coupon rate = 8.27%
Therefore, the coupon rate of the bond should be 8.27%.
All of the following would have to be reviewed by a principal EXCEPT: A Letters recommending securities to all clients of a registered representative B Complaint letters received from customers C Form letters mailed to all customers D Form letters for internal use within a firm
Answer:
D Form letters for internal use within a firm
Explanation:
A principal is a shareholder that has 10% or more of the voting shares of a company that is privately held or publicly traded.
Principals take into consideration SEC rules for insider trading.
The principal studies various activities such as Letters recommending securities to all clients of a registered representative, Complaint letters received from customers, Form letters mailed to all customers.
This is done to ensure he makes informed decisions regarding investment.
Usually other shareholders take a cue from investing activities of the principal.
Form letters for internal use do not determine share performance, so it is not reviewed by a principal.
Principal is different from majority shareholder who has 50% of more of voting shares.
When deciding whether or not to replace old equipment with new equipment, the overriding consideration is the
Answer: d. difference between future cost savings and the new equipment's costs.
Explanation:
When deciding whether or not to replace old equipment, the main thing the company should be concerned about is if the new equipment is worth it. This worth will be measured by how much it saves for the company over the old equipment vs its cost.
If the cost of the equipment is less than the future savings it will bring in, it should be bought to replace the old equipment because it would be contributing more than it costs. If the reverse is true then it should not be bought.
Andriel do you remember me
Answer:
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You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $68,000 per year for the next two years, or you can have $57,000 per year for the next two years, along with a $13,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $ Option 2 $
Answer:
PV of first option ($68,000 per year) = ($68,000 / 12) x 22.10965 (PV annuity factor, 24 periods, 0.667%) = $5,666.67 x 22.10965 = $125,288.02
PV of second option ($57,000 per year + $13,000) = $13,000 + [($57,000 / 12) x 22.10965 (PV annuity factor, 24 periods, 0.667%)] = $13,000 + ($4,750 x 22.10965) = $118,020.84
What role should government play in a free market economy?
Answer: Stabilize the economy
Explanation:
The bank you own has the following balance sheet: Assets Liabilities Reserves $75 million Deposits $500 million Loans $525 million Bank capital $100 million If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10%, what actions should you take
Answer:
Explanation:
Calculation of the amount of required reserve as follows:
Required Reserve = Deposit * required reserve ratio
= $500 million * 10%
= $50 million
Therefore, the bank must hold $50 million in required reserve.
It currently has $75 million in reserve so this requirement is met.
If the bank suffers a deposit outflow of $50 million
Assets Liabilities
Reserves - $25 million Deposits - $450 million
Loans - $525 million Bank capital - $100 million
So the required reserve is $450 * 10/100 = $45 million.
But in the reserve account we have only 25 million so we are falling short of $20 million. We need to maintain this required reserve so we can take following actions: 1. By borrowing $20 millions from other bank or financial institutions or corporations. 2. We can sell securities of $20 million. 3. We can borrow some money and can raise some money by issuing securities.
Will mark brainly
Martha runs a small travel and tourism business. She, along with her staff, organizes vacations for her clients. Recently, Martha opened a new branch of her business in a different city. She has decided to print new brochures and catalogs that give information about her business. She also plans to mail these brochures to various homes in a location that attracts customers. Which type of promotion does Martha plan to use?
A.
sales promotion
B.
direct marketing
C.
personal selling
D.
advertising
E.
public relations
Answer:
c
i can't ghshjdhnsjsggsbdn
Answer:
B - Direct Marketing
Explanation:
1. Plato
2. personal selling is meeting face to face. Direct marketing does not invlove interaction with customers. (:
JDS Shipyard's projected benefit obligation, accumulated benefit obligation, and plan assets were $75 million, $65 million, and $46 million, respectively, at the end of the year. a. What, if any, pension liability or pension asset must be reported in the balance sheet
Answer: Net Pension liability of $29 million
Explanation:
A net pension liability will be reported when the obligations of the employer which is the Projected benefit obligation, exceeds the Plan assets because the company has less resources than required to satisfy its obligations.
A net pension asset will be when the Projected Benefit Obligation (PBO) is less than the Plan assets.
In this case, there will be a Net pension liability of;
= PBO - Plan assets
= 75 - 46
= $29 million
You can borrow $200 today and repay $215 in one week. What is the effective annual rate (EAR) implied by this 7.5 percent rate charged for only one week?
a. 45,602%
b. 4,198%
c. 14,104%
d. None of these are correct.
e. 1,164%
Answer:
Effective Annual Rate = 4,198% (Approx)
Explanation:
Given:
Weekly rate = 7.5%
Find:
Effective Annual Rate
Computation:
Effective Annual Rate = (1+weekly rate)^52-1
Effective Annual Rate = (1+7.5%)⁵²-1
Effective Annual Rate = (1+0.075)⁵²-1
Effective Annual Rate = 4,198% (Approx)
You are considering borrowing $10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payments, to be paid at the end of each of the next 3 years. (Payments include both principal and Interest.) The annual payment that will fully pay off the loan is?
a. $2,890.
b. $4,020.
c. $2,674.
d. $3,741.