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NeX [460]
2 years ago
6

Karen and mike currently insure their cars with separate companies, paying $700 and $900 a year. if they insure both cars with t

he same company, they would save 10 percent on the annual premiums. what would be the future value of the annual savings over 10 years based on an annual interest rate of 4 percent
Business
1 answer:
Bumek [7]2 years ago
4 0
Given:
Karen - 700
Mike - 900
Same insurance company, they will save 10% on annual premiums.
period - 10 years
annual interest rate - 4%

Total Annual Premium:
700 + 900 = 1600 

Annual Savings:
1600 * 10% = 160

New Annual Premium:
1600 - 160 = 1,440

Future Value of Annual Savings:

FV = PV * FV factor for n = 10 ; i = 4%

FV = 160 * (1.04)¹⁰
FV = 160 * 1.480
FV = 236.80

The future value of the annual savings is 236.80.


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Global Technology’s capital structure is as follows: Debt 35 % Preferred stock 15 Common equity 50 The aftertax cost of debt is
lisov135 [29]

Answer:

weighted average cost of capital  = 13.10%

Explanation:

given data

Debt = 35%

Preferred stock = 15

Common equity = 50

cost of debt = 9 percent

cost of preferred stock = 13 percent

cost of common equity = 16 percent

to find out

Weighted Average cost of capital

solution

we get here weighted cost of each source of capital  that is

Weighted Cost  of Debt  = 0.35 * 9%  =  3.15 %        ....................1

Weighted Cost  of Preferred Stock = 0.15 * 13% = 1.95%     .........2

Weighted Cost  of Common Stock = 0.50 * 16% = 8 %    ..............3

so

so weighted average cost of capital  will be

weighted average cost of capital  = 3.15 % + 1.95% + 8 %

weighted average cost of capital  = 13.10%

8 0
2 years ago
Last year Easton Corporation reported sales of $480,000, a contribution margin ratio of 25% and a net loss of $16,000. Based on
Debora [2.8K]

Answer:

B. $544,000

Explanation:

Given: Sales: $480000.

           Contribution margin ratio= 25%

           net loss= $16000.

Break even point: It is point in business where profit is equal to expenses of the business.

Now, finding the fixed expense.

Fixed expense= loss+ (contribution\ margin\times sales)

⇒ Fixed expense= 16000+ (0.25\times 480000)

⇒ Fixed expense= 16000+ 120000

∴ Fixed expense=  \$ 136000

Next, computing the break even point

Sales to Break even point= \frac{Fixed\ expense}{Contribution\ margin\ ratio}

⇒ Break even point= \frac{136000}{0.25}

∴ Break even point= \$ 544000

Hence, the break even point was $544000

8 0
3 years ago
Keyser Beverage Company reported the following items in the most recent year.
sladkih [1.3K]

Answer:

Net cash provided by operating activities = $49,730

Net change in cash during the year = $56,750

Explanation:

CASH FLOWS FROM OPERATING ACTIVITIES  $

Net Income     43,490

<em>Adjustments to reconcile net income to      </em>

<em>net cash provided by operating activities:      </em>

Depreciation on Fixed Assets    7,970  

<em>(Increase) Decrease in Current Assets:      </em>

Accounts Receivables    (10,700)

<em>Increase (Decrease) in Current Liabilities:     </em>

Accounts Payable     8,970

NET CASH PROVIDED BY OPERATING ACTIVITIES 49,730

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Equipment    (9,000)

NET CASH USED IN INVESTING ACTIVITIES  (9,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Payment of Cash Dividends    (5,480)

Issue of notes payable    21,500

NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 16,020

NET INCREASE (DECREASE) IN CASH   56,750

3 0
3 years ago
Describe the 5 office layout.​
Morgarella [4.7K]

Answer:

The five most popular would be the...

Cubicle Office layout. This is the most popular and is basically a box with an opening.

Open Office layout. This is several rows of large desks. By definition, it is not very enclosed.

Co-Working Office layout. Less common, these are offices rented out to employees by third parties.

Team-Cluster Office layout. For teams working on something, this is a good way to go. One table where you can easily work together on things with each other as you go.

Hybrid Office layout. This one is a mix of a few others and customizable to a workplace's specific needs. Some of these don't even feel like offices!

5 0
2 years ago
A regional automobile dealership sent out fliers to prospective customers indicating that they had already won one of three diff
Bas_tet [7]

Answer:

the requirements are missing, so I looked for a similar question.

<em>a. How many fliers do you think the automobile dealership sent​ out? </em>

<em> b. Using your answer to​ (a) and the probabilities listed on the​ flier, what is the expected value of the prize won by a prospective customer receiving a​ flier? </em>

<em> c. Using your answer to​ (a) and the probabilities listed on the​ flier, what is the standard deviation of the value of the prize won by a prospective customer receiving a​ flier?</em>

a) the total fliers sent out = 31,246 + 1 + 1 = 31,248

b) expected value = [(1 x $28,000) + (1 x $100) + (31,246 x $5)] / 31,248 = $5.90

c) σ² = [($28,000 - $5.90)² x 1] + [($100 - $5.90)² x 1] + [($5 - $5.90)² x 31,246] / 31,248 = ($783,669,634.80 + $8,854.81 + $25,309.26) / 31,248 = $25,080.13

σ = √$25,080.13 = $158.37

4 0
3 years ago
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