Option 1: PV = $400,000
Option 2: Receive (FV) $432,000 in one year
PV = FV(1/(1+i)^n), where i= 8% = 0.08, n = 1 year
PV = 432,000(1/(1+0.08)^1) = $400,000
Option 3: Receive (A) $40,000 each year fro 20 years
PV= A{[1-(1+i)^-n]/i} where, n = 20 years
PV = 40,000{[1-(1+0.08)^-20]/0.08} = $392,725.90
Option 4: Receive (A) $36,000 each year from 30 years
PV = 36,000{[1-(1+0.08)^-30]/0.08} = $405,280.20
On the basis of present value computations above, option 4 is the best option for Kerry Blales. This option has the highest present value of $405,280.20
Answer:
D1 = 2.39
Explanation:
Expected Dividend can be found out by solving the following equation attached in the image.
In the formula D1 = expected dividend, Gs = 26%, Gm = 16%, gL = 7%, r =12%
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
Answer:
The amount Pharoah should report as net cash provided (used) by financing activities in its 2020 statement of cash flows is $344,000.
Explanation:
Pharoah Corporation
Statement of cash flows (extract)
Proceeds from common stock $256,000
Proceed from bond payable $466,000
Dividend paid ($333,000)
Purchase of treasury stock ($45,000)
Net cash flows from financing activities $344,000
Note that the payment of accounts payable and collection of notes receivable only affect the operating activities section of the cash flows.
Suppose in 2020, you purchase a house built in 2014. The value of the services of the real estate agent. the value of the services of the real estate agent would be included in the gross domestic product for 2020 This is further explained below.
<h3>What is the gross domestic product?</h3>
Generally, Final products and services—i.e., those purchased by consumers—are included in GDP, which estimates the value of goods and services produced in a specific period of time.
In conclusion, Imagine that in the year 2020 you decide to buy a home that was constructed in 2014. The price that should be paid for the real estate agent's services. The total value of the real estate agent's services would be included in the calculation of the gross domestic product for the year 2020.
Read more about gross domestic product
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