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kompoz [17]
4 years ago
9

Beacon Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2017 annual re

port: Minimum operating lease payments Amount (in millions) 2018 $ 89 2019 58 2020 42 2021 32 2022 25 Total $246 What is the present value of these operating lease payments, assuming a 6% discount rate?
A. $246 million
B. $215 million
C. $ 70 million
D. $225 million
E. None of the above
Business
1 answer:
eduard4 years ago
3 0

Answer:

B. $215 million 

Explanation:

The present value of the payment can be found by discounting each cash inflow by the 6% discount rate.

The present value can be found using a financial calculator:

The cash flow for year one = $89

The cash flow for year two = $58

The cash flow for year three = $42

The cash flow for year four = $32

The cash flow for year five = $25

All cash flows are in millions

I = 6%

NPV = $214.87 Million

I hope my answer helps you

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When there is a challenge, Luis is up for it. Deadlines and complex tasks that would send others running are enjoyable to Luis,
frez [133]

Answer: internal locus of control

                             

Explanation: There is a phenomenon known as the locus of control throughout the psychological literature that is new for most people, although it is universally understood once it is described.

Locus of influence is the system of beliefs of a person about the reasons of his or her experiences and the reasons that the participant contributes to final outcome.

Typically, this definition is separated into two categories: internal and external. If an individual has an internal control locus, that person will assign success to their own contributions and capabilities.

6 0
3 years ago
Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $2500
Lerok [7]

Answer:

$238000

Explanation:

The computation of the carrying value of the bond is shown below:

Given that

Face Value of Bonds = $250,000

Proceeds from issuance of bonds = $235,000

Before that we need to compute the following things

Now

Discount on Bonds Payable = Face Value of Bonds - Proceeds from issuance of bonds

= $250,000 - $235,000

= $15,000

Life of Bonds = 10 years

Now

Discount on Bonds amortized annually = Discount on Bonds Payable ÷ Life of Bonds

= $15,000 ÷ 10

= $1,500

Now

Discount amortized is

= Discount on Bonds amortized annually × expired life

= $1,500 × 2

= $3,000

Finally

Carrying Value of Bonds = Issue Price + Discount amortized

= $235,000 + $3.000

= $238,000

5 0
3 years ago
Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growt
mr_godi [17]

Answer:

$69.47

Explanation:

D1 = ($1.45*1.20) = $1.7

D2 = ($1.7*1.20) = $2.04

D3 = ($2.04*1.20) = $2.45

Value after year 3 = (D3*Growth Rate) / (Required rate-Growth Rate)

Value after year 3 = ($2.45*1.08) / 0.11-0.08

Value after year 3 = $2.646 / 0.03

Value after year 3 = $88.20

Current share price = Future dividend and value*Present value of discounting factor(rate%,time)

Current share price = $1.7/1.11 + $2.04/(1.11)^2 + $2.45/(1.11)^3 + $88.20/(1.11)^3

Current share price = $1.5315315 + $1.65571 + $1.7914189 + $64.49107

Current share price = $69.4697304

Current share price = $69.47

8 0
3 years ago
What is the practice of negotiating labor contracts that keep unnecessary workers on a company’s payroll called?
Rudiy27
<span>featherbedding is the answer


</span>
5 0
3 years ago
Read 2 more answers
If investors believe that a stock is not providing a return that sufficiently compensates them for the risk of the stock, they w
jarptica [38.1K]

Answer:

<u>sell the stock which will drive it's expected return even lower.</u>

Explanation:

An investor wants to be compensated for the risk undertaken in the form of return. When investors believe that a stock is not providing sufficient return, such stocks would be sold by the investor.

When a stock is not performing well i.e it's current market price goes down, all the investors holding that stock will sell it , leading to it's market price going further down.

Since the market price goes further down, the expected return on such a stock would further decline.

3 0
3 years ago
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