Answer:
present value = $6,246.34
Explanation:
given data
loan payment 1st year = $200 per month
loan payment 2nd year = $400 per month
annual interest rate = 12%
solution
we get here present value of 2 year loan that is express as
present value of 1st and 2
present value = present value of 1st + present value of 2nd year
we get here
present value = { $200 × 
- 
+ $400 × - } ÷ 1.0112
present value = $6,246.34
Answer:
current share price is $71.05
Explanation:
given data
grow at a rate = 20 percent
time = 3 year
growth rate falling off = 8 percent
dividend = $1.45
solution
we get here price of the stock in Year 3 that is 1 year before the constant dividend growth that is
P(3) = D(3) × (1 + g) ÷ (R - g) .............1
P(3) = D0 (1 + g1)³ × (1 + g2) ÷ (R - g)
P(3) = 
P(3) = $90.206
and
then price of the stock today is present value of first three dividends + present value of the Year 3 stock price
so price of the stock today is
P(0) = 
P(0) = $71.05
Answer:
The responses can be defined as follows:
Explanation:
The placement is essentially a network infrastructure facility in which a company can charge rent for servers as well as other equipment. A company can choose a site to build a server farm. However, one of the key drivers is the operating expenses for the building, maintenance, and updating of a computer system. We acquire and own the hardware (servers) as well as the software to support your presence online with the collocation, and thus are responsible for the correct setup and customization of a two. According to your needs, it may be possible to also buy a computer network or two to control traffic out into your servers (switching, router, firewalls, VPN devices, etc). The cost of the work for business continuity was often used by private companies over the years. Today, cloud providers particularly attractive among cools.
Answer:
ROE would have changed by 8.52%
Explanation:
First we calculate the current ROE using Dupont Equation which gives ROE as,
ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity
or
ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier
- Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%
The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.
- New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
- The ROE would have changed by 17.32 - 8.80 = 8.52%
Answer:
Annual deposit (PMT) = $1,567,060.39
Explanation:
Given:
Future value of annuity due = $8,000,000
Rate of interest(r) = 10% = 0.1
Number of year (n) = 4 year
Annual deposit (PMT) = ?
Computation of annual deposit :
\\\\8,000,000 = PMT [\frac{(1+0.1)^4-1}{0.1} ](1+0.1)\\\\8,000,000 = PMT [\frac{(1.1)^4-1}{0.1} ](1.1)\\\\8,000,000 = PMT [\frac{(0.4641}{0.1} ](1.1)\\\\8,000,000 = PMT [5.1051]\\PMT = 1,567,060.39](https://tex.z-dn.net/?f=Future%5C%20value%5C%20of%5C%20annuity%5C%20due%20%3D%20PMT%20%5B%5Cfrac%7B%281%2Br%29%5En-1%7D%7Br%7D%20%5D%281%2Br%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281%2B0.1%29%5E4-1%7D%7B0.1%7D%20%5D%281%2B0.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%281.1%29%5E4-1%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B%5Cfrac%7B%280.4641%7D%7B0.1%7D%20%5D%281.1%29%5C%5C%5C%5C8%2C000%2C000%20%3D%20PMT%20%5B5.1051%5D%5C%5CPMT%20%3D%201%2C567%2C060.39)
Annual deposit (PMT) = $1,567,060.39
