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4 years ago

5

Given a 4% required return, what is a $100 cash flow today, a $1,000 cash flow at the end of 1 year, and a $100,000 cash flow at

the end of five years, worth to you AT THE END OF 5 YEARS

1 answer:

KengaRu [80]4 years ago

7 0

Answer:

$83254.25

Explanation:

The formulae is nothing but the value factored to today

=(100)+(1000/(1+4%)^1)+(100000/(1+4%)^5)

=$83254.25

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g A department store chain has 15,100 shares of common stock outstanding at a price per share of $75 and a rate of return of 14%

horrorfan [7]

Answer:

10.79%

Explanation:

WACC = Pretax cost of debt*(1 - tax rate)*[(Number of bonds*Par value *selling price) / (Number of bonds*Par value*Selling price*Number of shares *Price per share)] + Rate of return*[(Number of shares*Price per share) / (Number of bonds*Par value*Selling price + Number of shares*Price per share)]

WACC = 0.065 *(1 - 0.29) * [(400*$1,500*98.2%) / (400*$1,500*98.2% + 15,100*$75)] + 0.14 x [(15,100*$75) / (400*$1,500*98.2% + 15,100*$ 75)]

WACC = 4.615%*[$ 589,200 / ($589,200 + $1,132,500)] + 0.14*[$1,132,500 / ($589,200 + $1,132,500)]

WACC= 4.615%*$589,200 / $1,721,700 + 0.14*$ 1,132,500/$ 1,721,700

WACC = 4.615%*0.342219899 + 14%*0.657780101

WACC = 1.579344834% + 9.208921415%

WACC = 10.79%

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3 years ago

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country

atroni [7]

non-tariff barriers
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Non tariff barriers are a way to restrict </span>trade<span> using </span>trade barriers<span> in a form other than a </span>tariff<span>. </span>Non tariff barriers include r<span>equirements for labeling, product testing, product certifications,</span>quotas, embargoes, sanctions, levies and other restrictions that would restrict import of goods and services.

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4 years ago

Which pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry?

d1i1m1o1n [39]

Status quo pricing objective de-emphasizes price and can lead to a climate of nonprice competition in an industry. Status quo—seeks to maintain a consistent level of profit made from a certain product by keeping your product pricing comparable to those of the same or similar items sold by your competitors in order to avoid beginning a price war.

The soft drink industry is an often used illustration of status quo pricing. Be it a Pepsi or a Coca-Cola product, the cost of a bottle of soda tends to be quite constant. Coca-Cola and Pepsi often represent the status quo in terms of pricing.

To learn more about quo pricing, click here.

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1 year ago

If the reserve requirement is 10 percent and the central bank sells 10,000 in government bonds on the open market, the money sup

sertanlavr [38]

If the reserve requirement is 10 percent and the central bank sells 10,000 in government bonds on the open market, the money supply will <u>decrease by a maximum of $100,000.</u>

<h3>What is Reserve Requirement?</h3>

The amount of money that a bank must have in reserve in order to pay its obligations in the event of unforeseen withdrawals is known as the reserve requirement.
The central bank uses reserve requirements as a tool to alter the amount of money in the economy and affect interest rates.
Based on a portion of the cash that customers have on hand, banks lend them money.
In exchange for this power, the government imposes one obligation on them to maintain a minimum balance of deposits to cover potential withdrawals.
The reserve requirement is the amount that banks must hold in reserve and are not permitted to lend above.

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8 0

2 years ago

Which of the following business that is owned and operated by a single person

zzz [600]

Answer:

What are the businesses that are listed?

Explanation:

4 0

3 years ago

Read 2 more answers