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eimsori [14]
1 year ago
7

Don is thinking of borrowing $10,000 from Hancock Whitney Bank. He promises Hancock Whitney cash flows of $5,000 every year for

the next three years. If Hancock Whitney Bank's cost of capital is 10%, what is the present value of the stream of cash flows?
Business
1 answer:
Ostrovityanka [42]1 year ago
3 0

The present value of the stream of cash flows is $2,434.26.

<h3>What is the present value?</h3>

Present value is the sum of discounted cash flows. The cash flows would be discounted using the cost of capital.

Present value = C / (1 + r)^n

Where:

  • C = cash flow
  • r = cost of capital
  • n = number of years

-10,000 + [5,000 / 1.1] + [5000 / 1.1²] +  [5000 / 1.1³] = $2,434.26

To learn more about present value, please check: brainly.com/question/26537392

#SPJ1

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The cost of equity is: Group of answer choices equal to the amount of asset turnover the weighted average cost of capital the in
san4es73 [151]

Answer:

the rate of return required by investors to incentivize them to invest in a company

Explanation:

In finance, the cost of equity is the Cost of Equity is the rate of return which an organization pays those that invested in equity. The organization uses cost of equity to check how attractive investments are.

It can be calculated by using the CAPM which is Capital Asset Pricing Model

6 0
3 years ago
Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes
larisa [96]

Answer:

D) She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.

Explanation:

Noelle is someone that is an average performer, so she will be open to doing mundane tasks since she is not overly worried about having a star performance.

She is also some one that spends more time than she should socializing with friends in other departments.

So she would be more prone to buying birthday cards for co-workers and organizing parties.

Noelle is an average performer with good social skills so she will be one that does not prioritise performing better than others

6 0
3 years ago
Ingrid Inc. has strict credit policies and only extends credit to customers with outstanding credit history. The company examine
Leviafan [203]

Answer:

Ingrid Inc.

a. Ingrid's balance in accounts receivable on December 31, 2018, prior to the adjustment is:

= $833,720.

b. Ingrid's balance in allowance for doubtful accounts on December 31, 2018, prior to the adjustment is:

= $6,800.

c. Adjusting Entry:

Debit Bad Debts Expense $3,180

Credit Allowance for Doubtful Accounts $3,180

To record the bad debts expense for the year and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $6,800

Explanation:

a) Data and Calculations:

January 1, 2019 balances:

Accounts Receivable $478,000

Allowance for Doubtful Accounts $7,900 (credit)

Accounts Receivable $3,075,000 Sales Revenue $3,075,000

Cash $2,715,000 Accounts Receivable $2,715,000

Allowance for Doubtful Accounts $4,280 Accounts Receivable $4,280

Ending balance:

Allowance for Doubtful Accounts $6,800 (Credit)

T-Accounts

Account Titles                      Debit      Credit

Beginning balance         $478,000

Sales Revenue            $3,075,000

Cash                                               $2,715,000

Allowance for Doubtful Accounts       $4,280

Ending balance                                $833,720

Allowance for Doubtful Accounts

Account Titles                      Debit      Credit

Beginning balance                            $7,900

Accounts Receivable      $4,280

Bad Debts Expense                             3,180

Ending balance               $6,800

6 0
2 years ago
Henderson Electronics Corporation manufactures and sells FM radios. Information on the prior year's operations (sales and produc
Juli2301 [7.4K]

Answer:

$4

Explanation:

Calculation to determine the minimum price the company would accept for the radios

Minimum price=Selling costs (40% variable)*$10

Minimum price=$4

Therefore the minimum price the company would accept for the radios will be $4 because it COVER THE VARIABLE SELLING EXPENSE

6 0
2 years ago
A firm can manufacture a product according to the production function: Q = F(K, L) = K3/4L1/4. a. Calculate the average product
Bad White [126]

Answer: 15.1875

Explanation: k = 81 units L = 16 units

(81 × 3/4) × (16÷4) = 243

Q =243

APL = Q / L

243 ÷ 16 = 15.1875 units of labour

4 0
3 years ago
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