Answer:
PV= $2,749,494
Explanation:
Giving the following information:
Cash flow= $200,000
Number of periods= 25
Interest rate= 5.25%
<u>First, we need to calculate the future value using the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {200,000* [(1.0525^25) - 1]} / 0.0525
FV= $9,881,102.14
<u>Now, the present value:</u>
PV= FV/(1+i)^n
PV= 9,881,102.14 / (1.0525^25)
PV= $2,749,494
Answer:
5.75%
Explanation:
The computation of the yield on a bond with three years to maturity is shown below:
Given that
Yield on a one-year bond is 3%
The expected yield on one-year bonds for the next two years is 5% and 4%
And, the liquidity premium is 1.75%
So, the yield on a bond with three years to maturity is
= (3% + 5% + 4%) ÷ 3 years + 1.75%
= 4% + 1.75%
= 5.75%
Answer:
$32,300
Explanation:
With regards to the above, the amount of total assets is the addition of current assets + Fixed assets.
= Accounts receivables + Cash + Truck equipment
= $7,000 + $7,300+ $8,000 + $10,000
= $32,300
Therefore ,
Total assets = $32,300
Answer:
Best estimate for inventory =$70,764.85
Explanation:
The closing inventory value at retail
= (Opening inventory + Purchases - sales) all in retail prices
= $123,000 + $483,000 - 493,000.
= 113000
Closing inventory value at cost
=113,000 × (64,500 + 315,000)/(123,000 + $483,000)
=70,764.85
Best estimate for inventory =$70,764.85
Answer:
a. $1,765,000
Explanation:
Total stockholder’s equity on December 31, 2013 = Total equity at end 2012 – amount paid for 3,000 shares were reacquired at $28 per share – amount paid for 3,000 shares were reacquired at $35 per share + amount collect from 1,800 shares of treasury stock were sold at $30 per share + net income of $450,000
= $1,450,000 – 3,000 * $28 – 3,000 * $35 + 1,8000 *$30 + $450,000 = $1,765,000
