In a common-sized income statement, each item is expressed as a percentage of net income. TRUE
Commonplace-size earnings statement is the vertical evaluation of the income statement. A vertical analysis indicates all gadgets as chances and now not in absolute figures which affords a higher assessment. each line object is expressed as a percent determined by the base parent within the declaration.
A not unusual length earnings statement is an earnings declaration wherein each line item is expressed as a percent of the price of revenue or income. it's far used for vertical analysis, in which each line object in a monetary assertion is represented as a percentage of a base figure inside the assertion.
Commonplace length statements are usually expressed in the form of percentages. therefore, such statements are also known as a hundred according to cent statements or factor percent statements as all of the individual items are taken as a percent of 100.
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Answer:
The total loan value would be of $261,825
Explanation:
In order to calculate how expensive of a home can Tedd purchase using a 4%, 30 year mortgage we would have to calculate first the amount of annual payments as follows:
amount of annual payments = $48,000*0.25 = $12,000
PMT = 12,000/12 = 1000
FV = 0
rate = 4%/12
N = 30*12
Hence, use FV function in Excel amount after down payment = $209,461.24
this represents 80% of the loan
, so total loan value = $209,461.24/0.8 = $261,825
The total loan value would be of $261,825
Answer: 10%
Explanation:
You can use Excel to solve for this.
The investment will be in negative as shown below.
Input the increase in net annual cash flows 7 times to represent 7 years.
IRR = 9.9999%
= 10%
Answer:
$656.82
Explanation:
The calculation of required return is shown below:-
Face value (FV) = $1,000
Coupon rate = 12.00%
Number of compounding periods per year = 4
Interest per period (PMT) = $1,000 × 12.00 ÷ 4
= $30.00
Number of years to maturity = 10
Number of compounding periods till maturity (NPER) = Number of compounding periods per year × Number of years to maturity
= 40
Required rate of return = 20.00%
Required rate of return per period (RATE) = 5.00%
Bonds value = -PV(RATE,NPER,PMT,FV)
= $656.82
Therefore we applied this formula into excel.
Answer:
$3.72
Explanation:
in order to determine the price of the stock we use the dividend discount model:
P₀ = Div₁ / (Re - g)
- P₀ = $90
- Div₁ = ?
- Re = 9%
- g = 9% / 2 = 4.5%
Div₁ = P₀ x (Re - g)
Div₁ = $90 x (9% - 4.5%) = $90 x 4.5% = $4.05
now the current dividend (Div₀) = Div₁ / (1 + Re) = $4.05 / (1 + 9%) = $4.05 / 1.09 = $3.7156 = $3.72
