Answer:
Nominal annual rate of interest(r) = 2.5% (Approx)
Explanation:
Given:
Present value (P) = $1,200
Future value (F) = $1,618.62.
Number of year = 1year = 12 months
Find:
Nominal annual rate of interest(r)
Computation:
Nominal annual rate of interest(r) =
Nominal annual rate of interest(r) =
Nominal annual rate of interest(r) = 0.02525
Nominal annual rate of interest(r) = 2.5% (Approx)
Answer and Explanation:
As we know that
The assets, expenses, and the dividend contains the debit normal balance while the liabilities, revenues and the stockholder equity contains the credit normal balance
Based on this, the classification are as follows
Particulars Debit Effect Credit Effect Normal Balance
(1) Salaries and Wages Expense Increase Decrease Debit
(2) Accounts Receivable Increase Decrease Debit
(3)Service Revenue Decrease Increase Credit
(4) Dividends Increase Decrease Debit
(5 Retained Earnings Decrease Increase Credit
Answer:
B) the ability to buy them.
Explanation:
When you analyze your potential markets, you must look for customers that are willing and able to purchase your products or services. By willing it means that they have an unsatisfied need that your product or service satisfies. By able it means that they have enough money to purchase your product or service.
Answer:
The answer is: The current share price is $47.96.
Explanation:
The current share price is equal to the present value of its expected dividend stream discounting at required return rate of 16%.
We have the dividend stream as followed:
Year 1: $22.00; Year 2:$10.00; Year 3: $8.20; Year 4: $2.80; Year 5: $2.80 * 1.05 = $2,94 and will be growing at 5% constantly afterward ( as dividend will be growing at 5% per year from Year 4 afterward).
So, the current share price is equal to:
22/1.16 + 10/1.16^2 + 8.2/1.16^3 + 2.8/1.16^4 + [Present value as at the end of year 4 of growing perpetuity which is dividend payment after year 4] / 1.16^4 = 33.20 + [ 2.94 / ( 16% - 5%) ] /1.16^4 = $47.96.
So, the current share price is $47.96.
If a recession in the United States were to start, all economic activity would start to slow down. This would show the PMI (purchasing managers' index) indicator slopping downward because items aren't being purchased at a fast paced rate. Housing starts are new construction builds that start each month, again, in a recession economic growth would slow so construction work would as well. A confirm payroll is statistically showing those who work in the economy except for: government, private business owners in home, nonprofit or farm workers.