Answer: interest earned = $8942372340
$8942672340 this is amount after 25 years.
Explanation:
formula used: S= R*[ (1+<em>i </em>)ⁿ-1 / <em>i </em>]
where:
S is future value
R is periodic payment
<em>i </em> is interest rate period
n is number of periods
R= $3000
n= 65-40=25 now 25*4=100 QUARTERLY that is why we used 4
<em>i </em>= 55% which is equal to 0.55
so, for quarterly <em>i= </em>0.55/4= 0.138
now putting them in formula given above
S= 3000*[ (1+0.138)¹⁰⁰-1] / 0.138
S= $8942672340 (future value )
total money deposited = number of period * periodic amount
= $3000*100 = $300,000
interest earned = future value - total money deposited
= 8942672340 - 300,000
interest earned = $8942372340
Answer: E) A's expected dividend is $0.75 and B's expected dividend is $1.20
Explanation:
Using the Gordon growth model, you can calculate the expected dividend. The formula is:
Price = Expected dividend/ (expected return - expected growth)
Stock A expected dividend
25 = D/ (10% - 7%)
D = 25 * 3%
= $0.75
Stock B expected divided
40 = D / (12% - 9%)
D = 40 * 3%
= $1.20
Option A, C and B are therefore wrong.
Option E is correct.
Answer:
d. $2.10 per unit
Explanation:
Calculation for What is the company's unit contribution margin
First step is to calculate the Variable cost using this formula
Variable cost = Variable Manufacturing Expenses + Variable Selling & Administrative Expenses
Let plug in the formula
Variable cost = $297,000 + $165,000
Variable cost = $462,000
Second step is to calculate Total Contributiom Margin using this formula
Total Contributiom Margin=Sales – Variable Cost
Let plug in the formula
Total Contributiom Margin= $924,000 - $462,000
Total Contributiom Margin= $462,000
Now let calculate Unit Contribution Margin using this formula
Unit Contribution Margin= Total Contribution Margin/Total number produced and sold cement
Let plug in the formula
Unit Contribution Margin = $462,000 / 220,000 Unit Contribution Margin= $2.10 per unit
Therefore the Unit Contribution Margin will be $2.10 per unit
B. credit to Unearned Warranty Revenue, $871