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Viefleur [7K]
3 years ago
11

What is the future value if the payments are invested with the first national bank which offers semiannual compounding?

Business
1 answer:
Alex73 [517]3 years ago
6 0
The problem is missing some details. But here is the complete solution. Now consider the second alternative-5 annual payments of $2,000 each. Assume that the payments are made at the starting of each year.

N = 5
I = 10.25
---> this is computed by: [(1+i/n)^n] -1I = <span>[(1+10/2)^2] -1 = 10.25
</span>PV = O
PMT = -2,000
Using a financial calculator...
Future Value = 13, 528.90
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Ecolap Inc. (ECL) recently paid a $1.26 dividend. The dividend is expected to grow at a 20.16 percent rate. At a current stock p
user100 [1]

Answer:

Expected return will be 22.65 %

Explanation:

We have given recently paid dividend = $1.26

Growth rate g = 20.16 %

Current stock price P_0=60.12 $

Next year dividend D_1=D_0(1+g)=1.26\times (1+0.2016)=1.26\times 1.2016=1.514

We have to find the expected return K_e

We know that current stock price is equal to P_0=\frac{D_1}{K_e-g}

60.72=\frac{1.514}{K_e-0.2016}

60.72 K_e - 12.241 = 1.514

60.72 K_e = 13.755

K_e = 0.2265 = 22.65 %

So expected return will be 22.65 %

8 0
4 years ago
Please help answer economics questions for brainliest and 100 points
VARVARA [1.3K]

Answer:

28.new technology

29.putting competitor's out of business.

30.supply goods and services in the product market

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32.toothpaste is a normal good.

34.a leftward shift of the demand curve.

6 0
3 years ago
Read 2 more answers
Explain the different process for the development of decision making skill?​
frozen [14]
Step 1: Identify the decision that needs to be made. ...
Step 2: Gather relevant information. ...
Step 3: Identify alternative solutions. ...
Step 4: Weigh the evidence. ...
Step 5: Choose among the alternatives. ...
Step 6: Take action. ...
Step 7: Review your decision and its impact (both good and bad)
6 0
2 years ago
Target ROI is 19% Invested Capital is $569,512 Full Cost per unit $1,124 Expected sales volume is 959 units. If the company pric
larisa [96]

Answer:

The amount of profit to be added to the cost of each unit = $112.83

Explanation:

<em>Profit is the difference between the selling price per unit and full cost per unit. To determine the the amount of profit to be added , we will divide the total return on invested capital by the number of units to be produced and sold. This is given below as follows:</em>

Target return = ROI (%) × Invested capital

                     = 19% × 569,512 = 108,207.28

Profit per unit = Total return/Number of units

                   = $108,207.28 /959 units

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Selling price per unit = Full cost per unit + profit per unit

                                = 1,124 + 112.83 = 1,237.66  (this is not required anyway)

The amount of profit to be added to the cost of each unit = $112.83

4 0
3 years ago
Business advisory services such as legal or advertising are classified under which category of industrial products
Gnom [1K]
<span>Business advisory services such as legal or advertising are classified under the services and supplies category of industrial products.

An industrial product is a product a company uses within itself. It is a consumable good that a company will use to make their good/product from. This can be used for the business or the family/individual personalized use. </span>
5 0
3 years ago
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