Answer: FVn = P( 1 + r )^n
Explanation:
Compound interest means that the bank is providing you with a return based on the opening balance on your account each year. This opening balance will include the interest earned in the previous year therefore ensuring that the bank will keep paying you a higher interest each year.
The formula is;
<em>FVn = P( 1 + r )^n</em>
Where;
FVn is the future value of the amount after n number of years
P is the money that you deposited
r is the interest rate that the money is being compounded with
n is the number of years
Cash Coverage ratio indicates if a firm has enough cash to pay of its interest expenses. The ideal ratio to be maintained by a firm is 1:1. This can be given by the following formula:
Cash Coverage Ratio=
Cash Coverage Ratio=
Cash Coverage Ratio=28.38
Assumption: Cost includes Depreciation, thus depreciation is added back, To find Cash Profits before Interest and Taxes.
Answer:
A. No gain or loss
B. Carryover; $2,338,000
Explanation:
A. Based on the information given the Corporation’s RECOGNIZED NO GAIN OR LOSS on the liquidation reason been that under SECTION 332 GOOSE'S BASIS IN THE SWIFT STOCK OF THE AMOUNT OF $3,340,000 IS REDUCED TO ZERO AMOUNT.
B. Based on the information given the Corporation’s BASIS IN THE ASSETS RECEIVED IN LIQUIDATION will be CARRYOVER BASIS of the amount of $2,338,000.
Purchasing power parity is basically the value of money in terms of what can be bought irrespective of market or region.
In the current scenario, Starbucks are expected to cost the same whether in Paris or Seattle. What matters here is the exchange rates.
If Starbucks costs $5 in Seattle and 4 Euros in Paris, the exchange rate is,
Exchange rate = Cost in Seattle/ Cost in Paris = $5/4 Euros = $1.25 per Euro or 4 Euros/$5 = 0.8 Euros per dollar. This means that Euro has more value than the dollar.
The correct answer is c.