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o-na [289]
3 years ago
6

On March 28, 2008, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, D

MF promised to repay the owner of one of these securities $100,000 on March 28, 2028, but investors would receive nothing until then. Investors paid DMF $22,364 for each of these securities.
Based on the $22,364 price, what rate was DMF paying to borrow money?
Business
1 answer:
Sidana [21]3 years ago
3 0

Answer:

DMF paying to borrow money at 7.78% return per year

Explanation:

given data

future value = $100,000

present value = $22,364

time period t = 20 year ( March 28, 2008 to March 28, 2028 )

solution

we get here rate of interest by the future value formula that is express as

rate = (\frac{future\ value}{present\ value})^{1/t} -1    ...............................1

put here value and we get rate of interest that is

rate = (\frac{100000}{22364})^{1/20} - 1    

solve it and we get

rate = 0.0778

rate = 7.78 %

so DMF paying to borrow money at 7.78% return per year

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The management of Furrow Corporation is considering dropping product L07E. Data from the company’s budget for the upcoming year
Maru [420]

Answer:

Sales                                                                              950,000

Less: Relevant cost:

Variable expenses                                                         380,000

Avoidable fixed manufacturing expenses                    217,000

Avoidable fixed selling and administrative expenses  178,000

Contribution                                                                    175,000

The total profit of Furrow Corporation reduces by $175,000 if the product is discontinued.

Explanation:

In this question, there is need to determine contribution, which is the excess of sales over relevant costs. Relevant costs are comprised of variable cost and avoidable fixed costs. The product should not be discontinued since the contribution is positive. Deleting a product with positive contribution reduces the total profit of the company by the amount of positive contribution.

7 0
3 years ago
Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec
Ket [755]

Answer:

Annual depreciation= $7,996

Explanation:

Giving the following information:

Purchase price= $42,000

Useful life= 5 years

Salvage value= $2,020

<u>To calculate the annual depreciation under the straight-line method, we need to use the following formula:</u>

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (42,000 - 2,020) / 5

Annual depreciation= $7,996

5 0
3 years ago
Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avai
Mars2501 [29]

Answer:

Marigold Company

Cost of goods sold = $9,119

Ending inventory = $7,461

Explanation:

a) Data and Calculations:

                            Units    Unit Cost    Total Cost

April 1 inventory    250         $14            $ 3,500

April 15 purchase  420           17                 7,140

April 23 purchase 330           18                5,940

Total                    1,000                           $16,580

Weighted-average costs   $16.58

Sales                     550

Cost of goods sold = 550 * $16.58 = $9,119

Ending inventory = 450 * $16.58 = $7,461

b) The first computation is for the total cost of goods available, which is then divided by the total units available for sale.  This gives the weighted-average cost per unit.  This unit cost is then multiplied with the units of ending inventory and sales to obtain the cost of the ending inventory and the cost of goods sold, respectively.

8 0
3 years ago
Five example of the key elements of effective event planning?​
evablogger [386]

Answer:

1) Know your Audience.

2)Engage your Guests.

3) Set Reasonable Budget Expectations.

4)Set an Intention for your Event.

5)Draft a plan and follow the timeline: ...

Explanation:

7 0
3 years ago
. Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $50 billion to the left. The governm
Romashka [77]

Answer

the correct answer is

Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.

good luck ❤

3 0
3 years ago
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