Answer:
Total PV= $15,103.49
Explanation:
Giving the following information:
Cf1= 4,500
Cf2= 5,700
Cf3= 8,000
Discount rate= 9%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= FV/(1+i)^n
Cf1= 4,500/(1.09)= $4,128.44
Cf2= 5,700/1.09^2= $4,797.58
Cf3= 8,000/1.09^3= $6,177.47
Total PV= $15,103.49
Answer:
Defensive Portfolio
Explanation:
Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.
Many defensive portfolio companies offer dividends with the effect of reducing capital losses.
Answer:
Additional Paid-in Capital for $20,000.
Explanation:
The Journal is as follows:
Cash A/c Dr. $120,000
To treasury stock $100,000
To Additional paid in capital $20,000
(To record the treasury stock and Additional paid in capital)
Workings:
Cash = 10,000 shares × $12
= $120,000
Treasury stock = 10,000 shares × $10
= $100,000
Additional paid in capital = 10,000 shares × ($12 - $10)
= 10,000 shares × $2
= $20,000
Answer:
The Buick and the second property.
Explanation:
The community property law states that income earned by either of spouse during the marriage or all the property purchased with those income during the marriage are equally owned by both husband and wife. These income and property are considered as community property.
Community property law distinguishes real and personal property into categories of separate and community property. Separate property belongs to one spouse; community property belongs to both spouses equally. Separate property is that property which is acquired prior to the marriage, by gift or inheritance.
Similarly, during the marriage debt is also equally shared by the spouse.
