Answer:
inflation rate = 4.66%
Explanation:
we can determine the inflation rate using the future value formula:
future value = present value x (1 + i)ⁿ
- future value = $68.69
- present value = $10.61
- n = 41 years
- i = inflation rate ?
$68.69 = $10.61 x (1 + i)⁴¹
(1 + i)⁴¹ = $68.69 / $10.61 = 6.474081056
⁴¹√(1 + i)⁴¹ = ⁴¹√6.474081056
1 + i = 1.0466
i = 1.0466 - 1 = 0.0466 = 4.66%
Answer:
losses from discontinued operations 395,000
Explanation:
From 1/1/20X1 to 8/31/20X1 <u>realized </u>loss 300,000
From 9/1/20X1 to 12/31/20X1 <u>realized </u>loss 200,00
<em><u>EXPECTED </u></em>Profit from 1/1/20X2 to 3/31/20X2 400,000
As the accounting carries the accrued principles Revsine's expectations aer not accrued thus, do not included until realized.
The company has losses for 500,000 with a tax-rate of 21%
This generates a tax-shield of 105,000
net of taxes: 500,000 - 105,000 = 395,000
The correct answer for this question is: TRUE. The Federal Advisory Council of the Federal Reserve decides if any changes to the money supply are needed. It is one of the responsibilities of the Federal Advisory Council of the Federal Reserve regarding to money supply that is needed.
Answer:
$9.7408
Explanation:
For computing the current stock price, first we have to determine the cost of equity which is shown below:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Cost of equity = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4.5% + 1.70 × (10.50% - 4.5%)
= 4.5% + 1.70 × 6%
= 4.5% + 10.2%
= 14.7%
Now the current stock price would be
Cost of equity = Next year dividend ÷ current stock price + growth rate
14.7% = $0.79875 ÷ current stock price + 6.5%
14.7% - 6.5% = $0.79875 ÷ current stock price
8.2% = $0.79875 ÷ current stock price
So, the current stock price would be
= $9.7408
Answer:
<em>The Schwinn exercise machine is most likely in the</em> <u>introduction</u><em> stage of the product life cycle.</em>
Explanation:
The life cycle of a product is characterized by the phases:
1- introduction,
2- growth,
3- maturity
4- decline.
The first step is the introduction, which characterizes the product's insertion in the market, and includes business efforts to make consumers aware of the product. This phase has as its main characteristics the <u>low volume of production and sales.</u>
