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JulsSmile [24]
3 years ago
10

What is the present value of a perpetual stream of cash flows that pays ​$8 comma 0008,000 at the end of year one and the annual

cash flows grow at a rate of 44​% per year​ indefinitely, if the appropriate discount rate is 1515​%? What if the appropriate discount rate is 1313​%?
Business
1 answer:
andre [41]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Cash flows= $8,000

Grow at a rate of 4​% per year​ indefinitely.

We need to find the present value using the following formula:

Present Value= periodic payment/ (i - g)

i= interest rate

g= growth rate

A) Interest rate= 15%

PV= 8,000/ (0.15 - 0.04)= $72,727.27

B) i= 13%

PV= 8,000/ (0.13 - 0.04)= $88,889

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George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company’s
Slav-nsk [51]

Answer: a) Maximum contribution - $11,500

b). The contribution by the $1,279.20

C). Take home pay with the retirement contribution deduction = $487.26

d). Take home pay without the retirement contribution deduction = $675.41

Explanation: George being a contributor to the retirement savings account is entitled to some allowances.

The maximum contribution he can make is $11,500 while the complany contributes 3% of his salary. That is 3% × $42,640 = $1,279.20

Having a weekly pay of $820 ($42,640/52 weeks) and being married his take home will be; Weekly Retirement contribution ($11,500 ÷ 52 weeks) = (221.15)

FIT ($820.00 – $221.15 = $598.85 taxable) (30.00)

State income tax ($820.00 × 0.023) =$18.86

Therefore take home =$ 487.26 *Married, 2 allowances.

Finally, George’s take-home pay without the retirement contribution deducted:

Weekly pay =$820.00

FICA—OASDI =($50.84)

FICA—HI = (11.89)

FIT (on $820.00) =(63.00)

State income tax ($820.00 × 0.023) = (18.86)

Therefore, Take-home pay =$675.41

3 0
3 years ago
Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85
kipiarov [429]

Answer:

9%

Explanation:

According to the given situation, the solution of return on investment is shown below:-

Return on investment = (Net operating income ÷ Average operating assets) × 100

now, we will put the values into the above formula

= ($45,360 ÷ $504,000) × 100

= 0.09 × 100

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Therefore for computing the return on investment we simply applied the above formula.

7 0
3 years ago
Accounts Payable: $19,207
lisabon 2012 [21]

Answer:

total liabilities = $169,008

Explanation:

total liabilities:

  • Accounts Payable: $19,207
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  • Sales Tax Payable: 3,512
  • FICA Tax Payable: 3,200
  • Bonds Payable: 100,000
  • Note Payable, due in two years 1,709
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  • Salaries and Wages Payable 17,880

to determine the total liabilities we just have to add both current and long term liabilities, and subtract any contra liability accounts = $176,008 - $7,000 = $169,008

7 0
2 years ago
Lorenzo is self employed with an s corporation. he is unmarried and had a net profit for the tax year. what are the tax ramifica
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Science explanation avout mesurement
maw [93]

Answer:

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