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JulijaS [17]
2 years ago
14

What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded semiannually?

Business
1 answer:
gladu [14]2 years ago
6 0

Answer:

FV = $16126.99655 rounded off to $16127

Explanation:

To calculate the future value of a sum of money, we simply multiply the present value by (1 + interest rate) for the period of time that we require the amount to be compounded. Thus, the formula for the future value of a sum of amount with annual compounding is,

FV = P * (1+i)^t

Where,

  • FV is future value
  • PV is present value
  • i is the interest rate
  • t is the period of time

For semi annual compounding, we simply divide the annual i by 2 and multiply the t by 2. So, Future value of an amount with semi annual compounding will be,

FV = P * (1 + i/2)^t*2

FV = 12000 * (1 + 0.06/2)^5*2

FV = 12000 * (1+0.03)^10

FV = $16126.99655 rounded off to $16127

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What is a business idea?
mart [117]

A business idea is an idea that one or more people come up with to start a business. The idea will state what the business is, how they think it should be run and what their customer base will be. After a business idea is planned the developer typically develops a marketing plan and from there they try and receive funding or get approval for their business idea.

3 0
3 years ago
Read 2 more answers
OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50 thousand bond
babymother [125]

Answer:

w_{d} = 0.3274 or, 32.74%

Explanation:

We know,

Capital Structure = Debt + Common Stock + Preferred stock

Given,

Common Stock = 4,000,000 shares

Share price = $21

Total common stock = No. of shares x share price

Total common stock = 4,000,000 shares × $21 = $84,000,000

Preferred Stock = 3,000,000 shares

Share price = $10

Total preferred stock = $10 x 3,000,000 shares

Total preferred stock = $30,000,000

Debt rate = 111% = 1.11

Debt = 50,000 bonds x $1000 par x 1.11

Debt = $55,500,000

Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)

Total capital structure = $169,500,000

The weight for debt in the computation of OMG's WACC

= \frac{Debt}{Total Capital Structure}

= \frac{55,500,000}{169,500,000}

= 0.3274

or, 32.74%

8 0
3 years ago
NewCorp has net income of $360. The firm pays out 35 percent of the net income to its shareholders as dividends. During the year
zmey [24]

Answer:

The cash flow to stockholders amounts to $45

Explanation:

Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.

The cash flow to stockholders is computed as:

Cash flow to stockholders = Dividend paid - New equity raised

where

Dividend paid is computed as:

Dividend paid = Net Income × %

= $360 × 35%

= $126

New equity raised is $81

So, putting the values above:

Cash flow to stockholders = $126 - $81

Cash flow to stockholders = $45

4 0
2 years ago
Requesting funds for working capital suggests that the business is not a solid investment
Minchanka [31]
If i am understanding the question correctly it is false.....but i am a week late soo either way i guess it doesnt matter xD
7 0
2 years ago
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Which piece of information would you find on an income statement?
Tatiana [17]

The answer is cost of goods sold... brainliest plz

3 0
3 years ago
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