Answer:
$347,769.72
Explanation:
yearly expense = present estimation of all expenses/PVAF(r,n)
PVAF or present worth annuity factor is the aggregate of limiting elements at a given occasional rate r for n number of periods .
Identical Annual Cost
= 864,868.52/PVAF(10%,3 years)
= 864,868.52/2.4869
= $347,769.72
Answer:
Steady Company's cost of equity is estimated to be 7.342%
Explanation:
The cost of equity is the return that is required by the holders of common stock in the company.
<em>Cost of Equity = Return on Risk free Securities + Beta × Risk Premium</em>
= 6.1 % + 0.18 × 6.9 %
= 7.342%
Therefore, Steady Company's cost of equity is estimated to be 7.342%.
Answer:
B
Explanation:
Venture capital firms are firms that invest in start up firms.
Venture capital firms use large amount of capital to fund their operations and so must be assured of the market attractiveness of the firm before undertaking the project to ensure profitability.
Potential size of the new venture has to be determined so as to ascertain the financial resources that would be needed.
Threat of resistance can reduce profitability and should also be considered.
Answer:
$32,610
Explanation:
The computation of adjusted cash balance per books is shown below:-
Adjusted cash balance per books = Beginning cash + Collection by bank - Charges of bank - NSF check
= $27,400 + $6,700 - $160 - $1,330
= $34,100 - $160 - $1,330
= $32,610
Therefore for computing the adjusted cash balance per books we have applied the above formula and we have take those things which are affecting the cash balance and rest we have not considered because they have related bank balance.
