The appropriate discount rate for the following cash flows is 15 percent compounded quarterly.
Year Cash Flow
1 $ 800
2 900
3 0
4 1,200
What is the present value of the cash flows?

Answers

Answer 1

$3,362.74 is the present value of the cash flows.

The present value of the cash flows is the sum of the discounted values of each cash flow. The discount rate of 15 percent compounded quarterly is used to calculate the present value of the cash flows. The present value of the cash flows is calculated by taking the present value of each cash flow at the end of each year and summing them together.

The present value of the cash flow in Year 1 is $715.24, Year 2 is $819.81, Year 3 is $622.61 and Year 4 is $1,005.08. The total present value of the cash flows is $3,362.74.

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Related Questions

gilbert company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost. what is the effect on the 2022 financial statements as a result of the incorrect capitalization?

Answers

If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated.  

Assets and net income are both overstated:

If Gilbert Company made an ordinary repair to a delivery truck during 2022 at a cost of $500 and capitalized the repair cost, the effect on the 2022 financial statements would be that assets and net income are both overstated. This is because the repair cost should have been expensed as a repair and maintenance expense, rather than being capitalized and added to the value of the delivery truck.

By incorrectly capitalizing the repair cost, the company has increased the value of its assets on the balance sheet, which in turn will result in an inflated net income on the income statement due to depreciation expense being lower than it should be. This overstatement can lead to a misrepresentation of the company's financial health and profitability.  

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select the two highlighted examples that best demonstrate what truman thinks joseph mccarthy and the republicans are doing.

Answers

The following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s: Dwight Eisenhower became president in 1952.  The correct option is B.

President Truman  played a significant role in shaping post-World War II policies, including the decision to drop atomic bombs on Hiroshima and Nagasaki, the implementation of the Marshall Plan, and the establishment of NATO.

Truman also oversaw the early stages of the Cold War, including the Korean War. He is known for his leadership during challenging times and his commitment to the principles of democracy and international cooperation.

Thus, the ideal selection is option B.

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The complete question might be:

Which of the following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s?

a. Truman defeated McCarthy in the election of 1952.

b. Dwight Eisenhower became president in 1952.

c. McCarthy decided not to run for reelection.

d. Truman was revealed to be a communist.

at an output level of 18,500 units, you have calculated that the degree of operating leverage is 3.20. the operating cash flow is $48,000 in this case. ignore the effect of taxes. a. what are fixed costs? (do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. what will the operating cash flow be if output rises to 20,500 units? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. what will the operating cash flow be if output falls to 17,000 units? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

a) The fixed cost is $33,000

b) The operating cash flow be if output rises to 20,500 units is $64,603.20

c) The operating cash flow be if output falls to 17,000 units is 35,544

How to calculate the operating cash flow

a. To calculate fixed costs, we need to first find the contribution margin at the output level of 18,500 units

We can use the degree of operating leverage (DOL) formula:

DOL = (Operating Cash Flow) / (Operating Cash Flow - Fixed Costs)

3.20 = ($48,000) / ($48,000 - Fixed Costs)

Now, solve for Fixed Costs:

Fixed Costs = $48,000 - ($48,000 / 3.20) = $48,000 - $15,000 = $33,000

b. To find the operating cash flow when output rises to 20,500 units, we need to first find the change in units:

Change in units = 20,500 - 18,500 = 2,000 units

Next, calculate the percentage change in output:

Percentage change = (2,000 / 18,500) * 100 = 10.81%

Now, find the change in operating cash flow using DOL:

Change in operating cash flow = DOL * Percentage change in output = 3.20 * 10.81% = 34.59%

New operating cash flow = $48,000 + (34.59% * $48,000) = $48,000 + $16,603.20 = $64,603.20

c. To find the operating cash flow when output falls to 17,000 units, follow the same steps as in (b):

Change in units = 17,000 - 18,500 = -1,500 units

Percentage change = (-1,500 / 18,500) * 100 = -8.11%

Change in operating cash flow = DOL * Percentage change in output = 3.20 * -8.11% = -25.95%

New operating cash flow = $48,000 + (-25.95% * $48,000) = $48,000 - $12,456 = $35,544

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actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except: group of answer choices hiring and training groups that have been underrepresented recruiting from groups the employer hasn't previously made an attempt to recruit from mentoring, management training, and other development hiring individuals from underrepresented groups, even if not fully qualified

Answers

The actions an employer can take to work toward inclusion of those historically underrepresented in the workplace include all of the following except hiring individuals from underrepresented groups, even if not fully qualified.

The other options, such as hiring and training groups that have been underrepresented, recruiting from groups the employer hasn't previously made an attempt to recruit from, and providing mentoring, management training, and other development, are all positive steps toward promoting workplace diversity and inclusion.

However, hiring individuals who are not fully qualified for a position could potentially undermine the objective of achieving a diverse and inclusive workplace, as it might result in lowered performance or negative perceptions from other employees. Instead, focusing on hiring qualified candidates and providing opportunities for growth and development can create a more equitable and inclusive environment for all employees.

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the governance mechanism most closely connected with deterring unethical behaviours by holding top management accountable for the corporate culture is a. ownership concentration. b. the market for corporate control. c. executive compensation systems. d. the board of directors.

Answers

The governance mechanism most closely connected with deterring unethical behaviors by holding top management accountable for the corporate culture is the board of directors.

The correct option is :-  D

The board of directors is responsible for overseeing the company's management and ensuring that it operates in an ethical and responsible manner. This includes setting and enforcing a strong corporate culture, and holding top management accountable for maintaining it.

Executive compensation systems may also play a role in promoting ethical behavior, but they are not directly connected to holding top management accountable for the corporate culture.

Ownership concentration and the market for corporate control are not governance mechanisms that are directly connected to promoting ethical behavior or holding top management accountable for the corporate culture.

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Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 7 years left to maturity bond. If the bond has a 7% coupon rate but pays interest semi-annually and you require a 5% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

Answers

I am willing to pay $985.81 today for this bond if you require a 5% return on your investment.

How to calculate the price of the bond?

To calculate the price of the bond, we need to find the present value of all the future cash flows (interest payments and principal repayment) discounted at the required rate of return of 5%.

The bond has a face value of $1,000 and a coupon rate of 7% paid semi-annually, so the semi-annual coupon payment is:

Coupon payment = Face value * Coupon rate / 2

= $1,000 * 7% / 2

= $35

Since the bond pays interest semi-annually, there will be 14 coupon payments (7 years x 2 payments per year) of $35 each. At the end of the 7th year, the bond will also pay back the face value of $1,000.

Using the formula for the present value of an annuity, we can find the present value of the 14 coupon payments:

PV of coupons = Coupon payment * [1 - 1/(1+r)^n] / r

where r is the required rate of return and n is the number of periods (in this case, 14 semi-annual periods).

Plugging in the values, we get:

PV of coupons = $35 * [1 - 1/(1+5%/2)^14] / (5%/2)

= $444.94

Using the formula for the present value of a single sum, we can find the present value of the face value payment:

PV of face value = Face value / (1+r)^n

Plugging in the values, we get:

PV of face value = $1,000 / (1+5%)^14

= $540.87

Therefore, the total present value of the bond's cash flows is:

Total present value = PV of coupons + PV of face value

= $444.94 + $540.87

= $985.81

So you are willing to pay $985.81 today for this bond if you require a 5% return on your investment.

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the future value of an ordinary annuity table is used when calculating multiple choice question. the present value of a series of payments. the present value of a single amount. the future value of a series of payments.

Answers

The future value of an ordinary annuity table is a tool used to calculate the future value of a series of payments made at the end of each period over a certain number of periods.

This table helps individuals determine the amount they will have in the future based on their current investment or savings plan. By using the table, investors can estimate the value of their investment at the end of the investment period, assuming they make regular, equal payments.

The table is also useful in calculating the present value of a series of payments. By taking the future value of these payments and discounting it back to the present, individuals can determine the amount they would need to invest today to achieve their desired future value. This is known as the present value of an ordinary annuity.

The present value of a single amount is also important to consider when investing. This refers to the value of a lump sum payment today that will grow over time, assuming a certain rate of return. By understanding the present value of a single amount, investors can better determine how much they need to invest to reach their financial goals.

In summary, the future value of an ordinary annuity table is a valuable tool for investors to determine the future value of their investments and savings plans. It can also be used to calculate the present value of a series of payments and a single lump sum payment.

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7. Nestle products Ltd includes in its account system a

purchase and sales ledger control account. The firms' trial

balance as at 31 March, 2018 includes the following

entries.

Purchases ledger control account

Sales ledger control account

The following is a summary of the firms' transactions with its suppliers:

1. Goods purchased and received from suppliers

(a) Gross invoice value before trade discount

(b) Net invoice price after trade discount

2. Goods returned to suppliers

(a) Gross invoice value before trade discount

(b) Gross invoice/price after trade discount

3. Amount due to suppliers

(a) Total amount

(b) Settled by payment of

4. Goods sold to customers:

(a) gross invoice value price before discount

(b) Net invoice value price after discount

5. Goods returned from customers:

(a) Gross invoice value before trade discount

(b)Net invoice price after trade discount

6. Amount due from customers:

GH¢'000

Dr 1,242

Cr 24,647

Dr 39,650

Cr

941

210,756

176,410

16,476

15,113

163,300

159,400

344,700

310,690

7,600

6,764

(a) Full amount

(b) Settle by receipts of

7. Customers debt written off

Additional information:

• It has been decided to create a provision for doubtful debt at

31/3/18 of 12%2% of the total amount due from customers

indebted to the firm. There was no provision for doubtful debt

in the trial Balance at 31 March, 2019

307,610

306,540

970

• At 31st March, 2019 both the purchases and sales ledgers

included accounts with K. M, purchases ledger GH¢1,630,000

(credit), sales ledger GH¢1,268,000 (debit).

• It has been decided to set off K. M's sales ledger balances

against the balance in purchases ledger. The purchases ledger

at 31st March, 2019 included the following account with debit

balances G. G GH¢930,000, L. B GH/420,000.

• The sales ledger at 31st March, 2019 included the following

accounts with credit balances P. H GH¢230,000, H. P

GH¢83,000, K. B GH¢500,000.

You are required to prepare the following account for the year

ended 31st March 2019 in the books of Nestle products Ltd.

(a) Payables ledger control account

(b) Receivables ledger control account

Answers

The required accounts to be prepared for the year ended 31st March 2019 in the books of Nestle products Ltd are:

(a) Payables ledger control account(b) Receivables ledger control account

To prepare these accounts, the given information regarding the transactions with suppliers and customers is used. The purchases ledger control account and sales ledger control account balances are also considered. The provision for doubtful debts is accounted for in the receivables ledger control account.

The accounts with K. M are set off against each other. The debit balances in the purchases ledger accounts of G. G and L. B are adjusted, and the credit balances in the sales ledger accounts of P. H, H. P, and K. B are adjusted.

The payables ledger control account is prepared to show the balance owed to suppliers, while the receivables ledger control account is prepared to show the balance owed by customers. These accounts help in determining the total payables and receivables of the company at the end of the financial year.

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all of the following are benefits the u.s. will gain from the adoption of globally consistent accounting standards except for: group of answer choices reduction in reporting costs as the need for multiple sets of financial statements decreases. increased quality of information available to investors. continued expansion of capital markets across national borders, facilitating more efficient use of global capital. nearly seamless transition with minimal expenses related to corporate governance considerations.

Answers

The benefit the U.S. will NOT gain from the adoption of globally consistent accounting standards is nearly seamless transition with minimal expenses related to corporate governance considerations. Option D is correct.

The adoption of globally consistent accounting standards is expected to provide several benefits to the U.S., such as the reduction in reporting costs as the need for multiple sets of financial statements decreases, increased quality of information available to investors, and continued expansion of capital markets across national borders, facilitating more efficient use of global capital.

However, a nearly seamless transition with minimal expenses related to corporate governance considerations is not a commonly cited benefit of the adoption of globally consistent accounting standards. In fact, implementing new accounting standards often requires significant changes to a company's corporate governance structure, which can result in additional expenses.

Therefore, option D is correct.

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which of the following is a political risk faced by organizations such as fifa that operate in multiple countries? group of answer choices a. challenges implementing the world trade organization agreements b. uncertain prices for critical commodities c. potential nationalization of invested assets d. failure of countries to pay debt obligations

Answers

The correct answer to your question is: c. potential nationalization of invested assets. This is a political risk faced by organizations like FIFA that operate in multiple countries, as it involves the possibility of a government taking control of their assets within that country .

The political risk faced by organizations such as FIFA that operate in multiple countries is the potential nationalization of invested assets. Nationalization refers to the process in which a government takes over private assets and makes them publicly owned. This can happen when a government feels that foreign investments are threatening their national security or when they want to take control of a strategic industry. Nationalization can lead to significant financial losses for organizations operating in multiple countries as they may lose their assets and investments in the affected countries.

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Discuss about how improving the fund raising measures at a
future non-profit.

Answers

There are various strategies for improving fund raising measures at a future non-profit, such as diversifying the donor base, expanding the scope of fundraising activities, and improving donor engagement.

One effective approach is to diversify the donor base by targeting individuals, foundations, corporations, and government agencies that are interested in supporting the non-profit's mission. This can be done through networking, outreach, and marketing campaigns that highlight the organization's impact and accomplishments.

Expanding the scope of fundraising activities can also help to increase donations. This can include hosting events, creating online campaigns, or partnering with other organizations to raise awareness and funds for the non-profit's cause.

In addition, improving donor engagement is critical for building long-term relationships and securing recurring donations. This can be achieved by creating personalized communication and marketing strategies that demonstrate the impact of donations and offer opportunities for involvement and feedback.

Ultimately, improving fund raising measures at a future non-profit requires a strategic and integrated approach that prioritizes relationship-building, donor engagement, and diversification of funding sources. By implementing these strategies, the non-profit can increase its financial stability and make a greater impact on its mission.

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select all that apply marketers strive for efficient operations to provide their customers with which of the following? (choose every correct answer.) multiple select question. the products they want low-quality merchandise the correct quantity of merchandise products with lower costs than those of competitors'

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Marketers strive for efficient operations to provide their customers with a: "the products they want" and c: "the correct quantity of merchandise", while also offering d: "products with lower costs than those of competitors'".

Efficient operations are essential for marketers to meet customer needs by providing the right products in the correct quantities, while also maintaining low costs. This allows businesses to compete with other companies by offering similar products at lower prices, while still making a profit. By streamlining their operations and reducing waste, marketers can optimize their production processes, minimize costs, and improve overall efficiency. Ultimately, these efforts benefit customers by providing them with high-quality products at affordable prices.

Options a, c and d are answers.

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when preparing the balance sheet for papago company for december 31, 2021, which item would not be classified as a current liability? multiple choice note payable due march 1, 2023 accounts payable income taxes due on september 15, 2022 the current portion of a 30-year mortgage

Answers

In the given options, the item that would not be classified as a current liability is the current portion of a 30-year mortgage

The current portion of a 30-year mortgage would not be classified as a current liability.

Current liabilities are those obligations that are due within one year or the company's operating cycle, whichever is longer. Examples of current liabilities include accounts payable, notes payable due within one year, and income taxes payable.

The current portion of a long-term liability, such as a 30-year mortgage, represents the portion of the principal that is due within the next 12 months. This amount is classified as a current liability on the balance sheet. However, the remaining portion of the mortgage, which is not due within the next 12 months, would be classified as a long-term liability.

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archaeologists have found little evidence of any hospitality or tourism businesses; it appears that the industry started in more modern times.

Answers

This statement is generally true. While there may have been some limited forms of hospitality or tourism businesses in ancient times (such as inns or lodgings for travelers), the modern tourism industry, as we know it today, did not emerge until the 19th and 20th centuries.

Before the modern era, travel was often difficult and dangerous, and most people traveled only out of necessity, such as for trade, pilgrimage, or military purposes. While there were some notable examples of early tourism, such as the Grand Tour of Europe undertaken by wealthy young men in the 17th and 18th centuries, these were the exception rather than the rule.

The growth of the modern tourism industry was fueled by a combination of factors, including improvements in transportation (such as the development of railroads and steamships), rising levels of income and leisure time, and the emergence of new forms of tourism such as beach resorts and theme parks.

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While there may not be much evidence of hospitality or tourism businesses in ancient times, this is not surprising given the informal nature of these industries and the fact that the concept of tourism as we know it today did not exist. The modern hospitality and tourism industry has its roots in the 19th century and has grown rapidly in the years since, becoming a significant contributor to many national economies around the world.

Archaeologists have indeed found little evidence of hospitality or tourism businesses in ancient times, indicating that these industries started in more modern times. This lack of evidence could be attributed to a number of reasons. Firstly, hospitality and tourism were not highly organized industries in ancient times, and therefore the physical remains of such businesses may not have been well-preserved.

Additionally, hospitality and tourism were often provided on an informal basis by local residents, making it difficult for archaeologists to distinguish between a residential structure and a hospitality establishment.Another factor that may have contributed to the lack of evidence is that the concept of tourism as we know it today did not exist in ancient times. Instead, people traveled for reasons such as trade, religious pilgrimage, or military conquest.

These journeys were often arduous and dangerous, and travelers were primarily concerned with finding shelter and provisions rather than recreational activities.It wasn't until the 19th century that the concept of tourism as a leisure activity began to emerge, and with it, the development of a more formal hospitality industry. This industry grew rapidly throughout the 20th century, fueled by advances in transportation and communication technology, and the increasing wealth and leisure time of the middle class.

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8. Determine the beta of a portfolio formed by 30% risk-free asset, 25% stocks of UBS with a volatility of 15% and with a beta of 0.8; 65% in Unilever stocks with a variance of 0.0012 and a beta equal to 0,6 and a short selling position equal to 20% in corporate bonds of Eon with a beta of 0,3. A) Beta between 0, 45 and 0,55 B) Beta between 0,6 and 0,7 C) Beta between 0,33 and 0,43 D) None of the above

Answers

The beta of the given portfolio is beta between 0.45 and 0.55 Therefore, the correct option is A.

To determine the beta of a portfolio, we need to calculate the weighted average of the betas of each component in the portfolio. Given the information in your question, we have:

1. 30% risk-free asset (beta = 0)

2. 25% UBS stocks (beta = 0.8)

3. 65% Unilever stocks (beta = 0.6)

4. -20% Eon corporate bonds (short selling, beta = 0.3)

Now, we'll calculate the weighted average beta:

Portfolio beta = (0.30 * 0) + (0.25 * 0.8) + (0.65 * 0.6) + (-0.20 * 0.3)

Portfolio beta = (0) + (0.2) + (0.39) + (-0.06)

Portfolio beta = 0.53

Based on the calculated portfolio beta of 0.53, the correct answer is A) Beta between 0.45 and 0.55.

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The common stock of NCP paid 1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years.
a. If NCP's current market price is $23.50 per share, what is the stock's expected rate of return?
b. If your required rate of return is 10.5 %, what is the value of the stock for that investor?
c. Should you make the investment?

Answers

Given that your required rate of return is 10.5% and the stock value ($57.024) is higher than the current market price ($23.50), it is clear that the stock is undervalued and would be a wise investment.

We'll be using the Dividend Discount Model (DDM) to solve the problem.

a. To calculate the stock's expected rate of return, we'll use the following formula:
Expected Rate of Return = (Dividend1 / Current Market Price) + Dividend growth rate

First, we need to find Dividend1, which is the dividend for the next year. We have:
Dividend0 = $1.32 (last year's dividend)
Dividend Growth Rate = 8%

Dividend1 = Dividend0 * (1 + Dividend Growth Rate)
Dividend1 = $1.32 * (1 + 0.08)
Dividend1 = $1.4256

Now, we can calculate the expected rate of return:
Expected Rate of Return = ($1.4256 / $23.50) + 0.08
Expected Rate of Return = 0.06066 + 0.08
Expected Rate of Return = 0.14066 or 14.066%

b. To find the value of the stock for an investor with a required rate of return of 10.5%, we'll use the DDM formula:
Stock Value = Dividend1 / (Required Rate of Return - Dividend Growth Rate)

Stock Value = $1.4256 / (0.105 - 0.08)
Stock Value = $1.4256 / 0.025
Stock Value = $57.024

c. To determine if you should make the investment, compare the stock value with the current market price. In this case:
Stock Value = $57.024
Current Market Price = $23.50

Since the stock value ($57.024) is greater than the current market price ($23.50), it indicates that the stock is undervalued, and it would be a good investment based on your required rate of return of 10.5%.

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the degree to which people believe a person has their best interests in mind is known as:

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The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness.

People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.

Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

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The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived trustworthiness. People's perceptions of someone's goodness.

or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly The degree to which people believe a person has their best interests in mind is known as perceived benevolence or perceived benevolence trustworthiness. People's perceptions of someone's goodness or trustworthiness might be gauged by how much they think that person has their best interests in mind. Factors including the person's behaviour, communication style, reputation, and degree of competence can all have an impact on this. those are more likely to trust those they believe to be trustworthy, honest, and truly concerned about their welfare.  concerned about their welfare. Building and sustaining healthy relationships, both personally and professionally, might depend on this degree of trust.

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Apocalyptica Corp. pays a constant $22 dividend on its stock. The company will maintain this dividend for the next 14 years and will then cease paying dividends forever. Required: If the required return on this stock is 15 percent, what is the current share price?

Answers

The current share price of Apocalyptica Corp. is $70.62.

Since the company will maintain the constant dividend for 14 years and then cease paying dividends forever, this is an example of a perpetuity followed by a lump sum payment.

We can use the formula for the present value of a perpetuity followed by a lump sum payment to calculate the current share price:

Current Share Price = (Annual Dividend / Required Return) x (1 - (1 + g)⁻ᴺ) + (Lump Sum Payment / (1 + Required Return)ⁿ)

Where:

Annual Dividend = $22

Required Return = 15%

g = 0% (since the dividend is constant)

N = 14 years

Lump Sum Payment = Present Value of the perpetuity after year 14 = (Annual Dividend / (Required Return - g)) x (1 - (1 + g)⁻ᴺ) = ($22 / (0.15 - 0)) x (1 - (1 + 0)⁻¹⁴) = $253.42

n = 14 years

Plugging in the values, we get:

Current Share Price = ($22 / 0.15) x (1 - (1 + 0)⁻¹⁴) + ($253.42 / (1 + 0.15)¹⁴) = $70.62 (rounded to the nearest cent)

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recruitment advertisements for certain guard positions at a women's correction facility specify that employees must be female. this is an example of:

Answers

The recruitment advertisements for certain guard positions at a women's correction facility specifying that employees must be female is an example of sex discrimination.

The requirement for only female employees is a form of sex discrimination, which is illegal under Title VII of the Civil Rights Act of 1964.

While it may be argued that the requirement is necessary for privacy concerns or to prevent sexual harassment, the requirement excludes qualified individuals based solely on their gender, which is a violation of their civil rights.

Gender-neutral job requirements that focus on job-related qualifications, skills, and abilities should be used to ensure fair hiring practices and prevent discrimination against any particular group.

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the candle shop experienced the following events during its first year of operations: acquired cash by issuing common stock. paid a cash dividend to the stockholders. paid cash for operating expenses. borrowed cash from a bank. provided services and collected cash. purchased land with cash. determined that the market value of the land is higher than the historical cost.

Answers

The candle shop experienced several events during its first year of operations. Firstly, they acquired cash by issuing common stock.

This means that they sold ownership shares in the company to investors in exchange for cash. Secondly, they paid a cash dividend to the stockholders, which is a distribution of profits to shareholders. Thirdly, they paid cash for operating expenses, which are the costs incurred in running the business such as rent, utilities, and wages. Fourthly, they borrowed cash from a bank, which means they took out a loan that they will have to pay back with interest. Fifthly, they provided services and collected cash, which means they sold candles and received payment for them.

Lastly, they purchased land with cash. However, they determined that the market value of the land is higher than the historical cost. This means that the value of the land has increased since they bought it, which is good news for the business.

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Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the project doing in terms of budget? A) Twenty five (25) dollars over budget B) Fifty dollars (50) over budget OC) Twenty five (25) dollars under budget D) Fifty (50) dollars under budget

Answers

Using the earned value and actual cost, the cost variance is 25 dollars under budget,

How well is the project doing in terms of budget?

To determine how well Sally's project is doing in terms of budget, we need to calculate the cost variance (CV), which is the difference between the earned value (EV) and the actual cost (AC).

CV = EV - AC

CV = 100 - 75

CV = 25

A positive CV indicates that the project is under budget, while a negative CV indicates that the project is over budget. In this case, the CV is positive, so the project is under budget.

Therefore, the correct answer is C) Twenty five (25) dollars under budget.

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Suppose you came into some money and looking for a bond to invest in. You found a $1,000, with 15 years left to maturity bond. If the bond has a 6% coupon rate but pays interest semi-annually and you require a 13% return on your investment, how much are you willing to pay for the bond? (Round your answer to two decimal point)

Answers

To calculate the price you are willing to pay for the bond, you need to use the present value formula:


PV = C[(1 - (1 + r)^-{n})/r] + FV/(1 + r)^{n}



Where:


PV = Present value (what you are willing to pay for the bond)


C = Coupon payment (in this case, half the coupon rate or 3%)


r = Required rate of return (13%/2 or 6.5%)


n = Number of periods (15 years x 2 since the bond pays semi-annually or 30)



Plugging in the values:

PV = 30[(1 - (1 + 0.065)^{-30})/0.065] + 1000/(1 + 0.065)^{30}


PV = $707.20

Therefore, you are willing to pay $707.20 for the bond if you require a 13% return on your investment.

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9-3: Bond Valuation Problem Walk-Through Bond valuation Nungesser Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 17 years to maturity, and an 8% YTM. What is the bond's price? Round your answer to the nearest cent. . $

Answers

Nungesser Corporation's outstanding bonds' price is $860.52.

1. Par value:

The par value of the bond is $1,000.

2. Semiannual coupon:

The bond has a 7% semiannual coupon, meaning it pays 7%/2 = 3.5% of the par value every 6 months. So, the coupon payment per period is $1,000 * 0.035 = $35.

3. Years to maturity:

The bond has 17 years to maturity. Since it is a semiannual bond, there will be 17 * 2 = 34 periods until maturity.

4. YTM:

The bond has an 8% YTM, which is the yield to maturity per year. Since the bond is semiannual, the yield per period will be 8%/2 = 4%, or 0.04 as a decimal.

5. We will calculate the bond's price using the Present Value (PV) formula for bonds:

PV = C * (1 - (1 + r)^(-n)) / r + F * (1 + r)^(-n)

Where:
PV is the bond's price
C is the coupon payment per period ($35)
r is the yield per period (0.04)
n is the number of periods (34)
F is the par value of the bond ($1,000)

PV = $35 * (1 - (1 + 0.04)^(-34)) / 0.04 + $1,000 * (1 + 0.04)^(-34)

PV ≈ $35 * 15.0463 + $1,000 * 0.3339

PV ≈ $526.62 + $333.90

PV ≈ $860.52

The bond's price is approximately $860.52, rounded to the nearest cent.

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Conclude an entry barriers essay

Answers

Entry barriers refer to the obstacles that prevent new companies from entering a particular market or industry. The goal of implementing entry barriers is to create a competitive advantage for existing companies, which makes it difficult for new players to enter and compete in the market.

There are many different types of entry barriers, including economies of scale, access to distribution channels, regulatory hurdles, intellectual property rights, and brand recognition. It's important to note that entry barriers can have both positive and negative effects on competition and consumer welfare.

In conclusion, entry barriers can be an effective way for companies to maintain their competitive edge and protect their market share. However, policymakers and regulators must also consider the potential negative consequences of entry barriers, such as reduced innovation and higher prices for consumers. Ultimately, finding the right balance between promoting competition and protecting existing companies is key to maintaining a healthy and dynamic economy.

although a firm's existing mix of financing sources may reflect its target capital structure, it is ultimately . group of answer choices the internal rate of return that is relevant for evaluating the firm's future investment opportunities the marginal cost of capital that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future investment opportunities the risk-free rate of return that is relevant for evaluating the firm's future financing opportunities

Answers

While a firm's existing mix of financing sources and target capital structure are important considerations, they are ultimately less relevant than the marginal cost of capital when evaluating the firm's future investment opportunities.

The most important factor to consider when evaluating a firm's future investment opportunities is the marginal cost of capital. The marginal cost of capital refers to the cost of obtaining additional funds to finance a new project or investment. It takes into account the various sources of financing available to the firm, including debt, equity, and other forms of financing.

When a firm is considering a new investment opportunity, it will typically need to raise additional funds to finance the project. The cost of these funds will depend on the firm's existing financing mix, as well as the current market conditions for different types of financing. For example, if interest rates are low, the cost of debt financing may be relatively cheap, while equity financing may be more expensive.

To evaluate the potential return on a new investment opportunity, it is important to compare the expected return on the investment to the marginal cost of capital. If the expected return on the investment is greater than the marginal cost of capital, then the investment is likely to be profitable for the firm. However, if the expected return is lower than the marginal cost of capital, then the investment is unlikely to generate a positive return for the firm.

It is worth noting that the risk-free rate of return can also be relevant when evaluating a firm's future investment opportunities. The risk-free rate of return refers to the rate of return on a risk-free investment, such as a government bond. This rate can be used as a benchmark for comparing the expected return on a new investment opportunity. If the expected return on the investment is significantly higher than the risk-free rate of return, then the investment may be worth considering.

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the long run is best defined as a time period during which at least one input cannot be changed. that is longer than two years. during which the prices of other goods change. that is long enough to change all factors of production. one thing that distinguishes the short run from the long run is whether any costs are fixed. explicit costs. the presence of variable costs. the number of months considered.

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The long run is a time period that is longer than two years and during which all factors of production can be changed.

The long run is a time period that is longer than two years and during which all factors of production can be changed. This is in contrast to the short run, where at least one input is fixed and cannot be changed. Another distinguishing factor between the short run and the long run is the presence of fixed costs. In the short run, there are fixed costs, while in the long run, all costs are variable. Additionally, during the long run, the prices of other goods can change, which can impact production decisions.

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the span at which the cost behaviors are expected to hold true is called: multiple choice variable costing full absorption costing relevant range relevant period

Answers

The span at which the cost behaviors are expected to hold true is called the relevant range.

It refers to the range of activity within which assumptions about cost behavior are valid. The relevant range is important because costs can behave differently at different levels of activity. For example, fixed costs remain constant within the relevant range but can increase or decrease outside of it.

Understanding the relevant range is critical in making decisions that affect costs and revenues, such as setting prices, determining production levels, and analyzing cost-volume-profit relationships. It is also important in managerial accounting, where cost behavior is analyzed to understand the cost structure of a company and to make decisions related to budgeting and forecasting.

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Full Question : the span at which the cost behaviors are expected to hold true is called: multiple choice

variable costing full absorption costing relevant range relevant period

Company A is a AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month LIBOR + .150 percent or at three-month LIBOR + .150 percent. Given its asset structure, three-month LIBOR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 1.150 percent or at three-month LIBOR + 1.00 percent. Given its asset structure, six-month LIBOR is the preferred index. Assume a notional principal of $15,000,000. What is the quality spread differential (QSD)?
a 0.125 percent
b 0.375 percent
c 0.150 percent
d 0.625 percent

Answers

The quality spread differential (QSD) is 0.375 percent. The answer is b.

The QSD is the difference in credit spread between two fixed-income securities with similar characteristics, but different credit ratings.

In this case, the QSD is calculated as the difference between the spread of Company A's FRNs (three-month LIBOR + 0.150 percent) and the spread of Company B's FRNs (six-month LIBOR + 1.150 percent), which is 1.0 percent.

However, since the preferred index for Company A is three-month LIBOR and for Company B is six-month LIBOR, we must adjust for the difference in index tenors.

Assuming a linear relationship between the two indices, the adjustment is 0.625 percent (1.0 percent spread difference divided by the two-year difference between the indices).

Thus, the QSD is 0.150 percent (0.625 percent minus 0.475 percent), which is the difference in credit spread after adjusting for the difference in index tenors.

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The market price of a 17.00-year STRIPS is $350.00 The
yield to maturity is ____%.
Please show work and how to do it on a
calculator.

Answers

The yield to maturity of a 17-year STRIPS with a market price of $350 is 3.86%.

To calculate the yield to maturity, use the formula:

Yield to Maturity = [(Face Value / Present Value)^(1 / Years to Maturity) - 1] × 100%

Assuming the face value of the STRIPS is $1,000:

1. Divide the face value by the market price: 1000 / 350 = 2.857
2. Raise the result to the power of 1/17 (1 divided by the years to maturity): 2.857^(1/17) = 1.0386
3. Subtract 1: 1.0386 - 1 = 0.0386
4. Multiply by 100% to get the percentage: 0.0386 x 100% = 3.86%

The yield to maturity of the 17-year STRIPS is approximately 3.86%. To calculate this on a calculator, follow the steps mentioned above using the calculator's functions for division, exponentiation, and percentage.

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what is the central role of financial intermediaries in a market economy?group of answer choicesproviding safe deposit boxes for people and businessesthe creation and printing of moneybringing together savers and borrowerskeeping the price level stable

Answers

The central role of financial intermediaries in a market economy is bringing together savers and borrowers.

Financial intermediaries are generally used for financial transactions. This usually takes place between different banks.

These types of intermediaries lower the cost of doing business. For leasing purposes, we should use financial intermediaries, and also defer ourselves from accepting credits from the public in this scenario.

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