Accounts receivable are assets on a balance sheet most likely because they represent the?

Transportation stocks currently provide an expected rate of return of 15%. TTT, a large transportation company, will pay a year-

steposvetlana [31]

Answer:

The answer is: 10% constant growth rate

Explanation:

Since transportation stocks provide a 15% rate of return, TTT stock should also provide the same rate of return. We can expect to earn $9 (= $60 x 5%) every year from our investment in TTT stocks. We are receiving $3 as dividends, so the constant growth rate should equal the difference between the expected return minus the dividend payments:

$9 - $3 = $6; $6 represents 10% of the current stock price

We can also calculate this with the following formula:

expected return rate = (dividends / price) + growth rate

15% = (3 / 60) + g

15% = 5% + g

10% = g

6 0

3 years ago

Nancy and Tonya exchanged assets. Nancy gave Tonya her personal residence with an adjusted basis of $280,000 and a fair market v

azamat

Answer:

Realized gain $110,000

Recognized gain $110,000

Explanation:

The computation of the Tonya's realized and recognized gain is shown below:

Amount realized by Tonya (fair market value) $560,000

Less; Amount given by Tonya

Yacht: adjusted basis ($250000)

Assumption of Nancy's mortgage ($200000)

Realized gain $110,000

Recognized gain $110,000

7 0

3 years ago

Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.

Identifying the given information.

We have a period of 30 years, so for the semiannual bond we have $n=2(30) = 60$ periods.

The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to find the interest per period PMT.

$PMT=0.10 \times \cfrac{1000}{2}\\PMT=\$ 50$

The current price of the bond, PV is $1050.

Replacing the values on the semiannual Yield to Maturity

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

$YTM_{sm}=\cfrac{50+\cfrac{1000-1050}{60}}{\cfrac{1000+1050}{2}}$

Simplifying we get

$YTM_{sm}=4.797\%\\$

Finding the Yield to Maturity.

We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get

$YTM = 2 YTM_{sm}\\YTM=9.59\%$

Alternatively we can use Excel and write:

RATE(n, PMT, PV, FV)*2

That is

RATE(60,50,1050,1000)*2

And we will get the exact Yield to maturity 9.49%

3 0

3 years ago

Which type of nominal decision is characterized by a fairly high degree of product involvement but a low degree of purchase invo

Ann [662]

Brand loyal decision is a type of nominal decision that is characterized by a fairly high degree of product involvement by a customer, but a low degree of purchase involvement.

<h3>What is Brand loyal decision?</h3>

A brand loyal decision can be defined as a type of nominal decision which involves a customer having a fairly high degree of involvement in the products offered by a producer (business organization) but a low level of involvement in its purchase.

This ultimately implies that, a brand loyal decision is characterized by a fairly high degree of product involvement with subsequent low degree of purchase involvement.

Read more on decision-making process here: brainly.com/question/1249089

3 0

2 years ago

Stallman Company took a physical inventory on December 31 and determined that goods costing $275,260 were on hand. Not included

Tpy6a [65]

Answer:

Inventory at year-end: 344,000

Explanation:

The inventory should add the purchased goods from Pelzer as the possesion is transfer at shipping point.

The sales units to Alvarez should also be included as teh transfer is not complete yet. The term on this transaction are at destination.

Total inventory in transit: 28,940 + 39,800 = 68,740‬

on hand: $ 275,260

in-transit: $<u> 68, 740 </u>

Total: $ 344,000

5 0

3 years ago