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Nitella [24]
3 years ago
12

Richard Miller is saving for an Australian vacation in three years. He estimates that he will need $4,930 to cover his airfare a

nd all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 10.9 percent over the next three years, how much will he have to save every year if he starts saving at the end of this year? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)
Business
1 answer:
Bond [772]3 years ago
5 0

Answer:

$1476.71

Explanation:

Formula = pmt(((1+r)^n)-1)/I

I = nominal interest rate

Pmt = dollar amount

r = interest rate

N = number of period

4930 = pmt(((1 +0.109)^3)-1)/0.109

4930 = pmt(1.109^3)-1/0.109

4930 = pmt(1.3639-1)/0.109

4930 = pmt(0.3638/0.109)

4930 = pmt3.3385

Pmt = 4930/3 3385

= $1476.71

Richard miller would have to save $1476.71

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Widget Inc. manufactures widgets. The company has the capacity to produce​ 100,000 widgets per​ year, but it currently produces
gayaneshka [121]

Answer:

$62,100

Explanation:

Given that,

Sales price per unit = $ 40

Variable costs per​ unit:

Manufacturing = $ 23

Marketing and administrative = $ 8

Total fixed​ costs:

Manufacturing = $ 76,000  

Marketing and administrative = $24,000

Total incremental costs:

= Variable manufacturing + Variable marketing and administrative

= (6,900 × $23) + (6,900 × $8)

= $158,700 + $55,200

= $213,900

Incremental income:

= Incremental revenue - Total incremental costs

= (6,900 × $40) - $213,900

= $276,000 - $213,900

= $62,100

Therefore, the operating income increases by $62,100.

7 0
3 years ago
Which of the following mechanisms would be most likely to help motivate managers to act in the best interests of shareholders?
myrzilka [38]

Answer:

The correct answer is d) Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Explanation:

Option D. represents two situations that perfectly describe the interest that the shareholders pursue: the maximization of the profits of the company where they have their resources invested.

The shareholder, on the other hand, is also an investor, since he contributes capital with a view to obtaining a dividend.

Its investment is said to be in equities, given that there is no contract through which the shareholder will receive fixed fees in return for his investment. Their remuneration is through two ways:

  1. Dividend
  2. Increase in the price of the company. This is produced by its good progress and its ability to generate future benefits, as well as by the increase in assets through past benefits.
5 0
3 years ago
Roman owns shares in a company called Copnay Telecom Inc.The company's financial performance has been declining over the past fe
docker41 [41]

Answer: D. Transferability of investor ownership.

Explanation:

From the question, we are informed that Roman owns shares in a company called Copnay Telecom Inc. and that the company's financial performance has been declining over the past few months, and the value of its stock has been decreasing.

We are further told that Roman wants to proactively cut his losses and therefore sells his shares and that Jeremy, a trading enthusiast, buys shares in Copnay Telecom because he believes that the share prices cannot go anywhere but up.

The characteristics of a public stock company that this scenario best exemplify is transferability of investor ownership. This was illustrated when Roman transferred his ownership to Jeremy.

3 0
3 years ago
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 10 units at $120 6
Vesna [10]

Answer:

$3540.

Explanation:

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

Ending inventory comprises of goods bought in May, September and November

cost of the ending inventory :

(4 x $130) + (12 x $135) + (10 x$140) = $3540

6 0
2 years ago
American expansionism after the 1890s:
lisabon 2012 [21]

Answer:

a. was largely driven by the desire for expanded overseas trade

Explanation:

5 0
3 years ago
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