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krek1111 [17]
4 years ago
10

You have decided that you want to be a millionaire when you retire in 44 years. If you can earn an annual return of 11.14 percen

t, how much do you have to invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Investment $ What if you can earn an annual return of 5.57 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Investment $
Business
1 answer:
SpyIntel [72]4 years ago
3 0

Answer:

At 11.14% interest rate we need to invest    8,650.71  today

At 5.57% interest rate we need to invest 92,090.97 today

Explanation:

We will calculate the present value of 1,000,000 at 11.14% for 44 years

and at 5.57% for 44 years

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000,000.00

time   44 years

if rate = 11.4% =  0.114

\frac{1000000}{(1 + 0.114)^{44} } = PV  

PV   8,650.71

if rate = 5.57% = 0.0557

\frac{1000000}{(1 + 0.0557)^{44} } = PV  

PV   92,090.97

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The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, whil
SpyIntel [72]

Answer:

3.27

Explanation:

Calculation to determine the enterprise value-EBITDA multiple for this company

First step is to calculate the

Enterprise value

Using this formula

Enterprise value = Market Capitalization + Total Debt - Cash and equivalents

Let plug in the formula

Enterprise value=$582000 + $192000 - $21000

Enterprise value=$753000

Second step is calculate EBITDA using this formula

EBITDA = EBIT + Depreciation and Amortization

Let plug in the formula

EBITDA= $93000 + $137000

EBITDA=$230,000

Now let determine the EBITDA multiple using this formula

EBITDA multiple = Enterprise Value / EBITDA

Let plug in the formula

EBITDA multiple=$753000 / $230000

EBITDA multiple= 3.27

Therefore enterprise value-EBITDA multiple for this company is 3.27

8 0
3 years ago
Organizational core values are the answer to which of the following questions? How do we accomplish our goals? Which of the valu
Ipatiy [6.2K]

Answer: The correct answer is “How do we accomplish our goals?”

Explanation: An organization’s core values are the fundamental beliefs of the organization. The are the guiding principles that guide the activities and employees of the organization. They answer the question “How do we accomplish our goals?”

8 0
3 years ago
The balance sheet shows the following accounts and amounts Inventory. $84,000, Long-term Debt 125.000; Common Stock $60,000; Acc
Brums [2.3K]

Answer:

b. $325,000

Explanation:

The current assets are the assets that are likely to be converted to cash within 12 months. These include cash, inventory, receivables, prepaid expenses etc.

Given;

Inventory = $84,000,

Long-term Debt = $125.000;

Common Stock $60,000;

Accounts Payable $44,000;

Cash $132,000,

Buildings and Equipment $390,000:

Short-term Debt $48.000:

Accounts Receivable $109,000,

Retained Earnings $204,000 Notes Payable $54.000:

Accumulated Depreciation $180.000

Total current asset = $84,000 + $132,000 + $109,000

= $325,000

5 0
3 years ago
Suppose you are a Social Security recipient. In 2006 you receive $600 per month in Social Security benefits. In October of that
Fiesta28 [93]

Answer:

a. How much will your 2007 monthly benefit be?

  • $600 x 103.3% = $619.80

b. In real terms, do your benefits go up, go down, or stay the same?

  • Benefits will stay the same because in real terms the adjustment will only match the inflation rate. There is no real increase in the purchasing power of the money received. Inflation decreases the purchasing power of the currency, that means that $100 today buys less than $100 a year ago. If the adjustment only covers the inflation rate, there is no real gain but at least there is no real loss either.
3 0
3 years ago
The more companies an insurance company insures, the more likely they can predict the percentage of losses over a
Mumz [18]

Answer: C. Law of Large Numbers

Explanation:

The law of large numbers, posits that as the sample size grows, the mean of the samples will be closer to the average that's meant for the entire population.

According to the law of large numbers, when an experiment is repeated so many times, and then the results are averaged, the value that one gets will be close to the expected value.

In insurance, the more companies that are insured by the insurance company, the more likely they will b able to predict the percentage of losses over a given period of time.

5 0
3 years ago
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