Answer:
$2,349.5
Explanation:
The total commission on sale of the house is $9,410
Broker who listed collected 30% = 30% * $9,410 = $2,823
Broker whose sales associate completed the transaction gets 45% = 45% * $9,410 = $4,234.5
Sales associate who made the sale will receive = $9,410 - $2,823 - $4,234.5 = $2,349.5
Answer:
1./
INITIAL INVESTMENT
= $1600000
ANNUAL NET CASH FLOW
= NET INCOME + DEPERICATION
= $250000 + [($1600000 - $350000) / 8]
= $250000 + $156250
= $406250
SALVAGE VALUE
= $350000
NPV
= -$1600000 + $406250 * PVIFA 10%, 8 PERIODS + $350000 * PVIF 10% *PERIOD
= -$1600000 + $406250 * 5.3349 + $350000 * 0.4665
= -$1600000 + 2167303.13 + $163275
= $730578.13
2./
AS THE NPV IS GREATER THAN 0 OR POSITIVE THE IRR IS GREATER THAN 10%
3./
INITIAL INVESTMENT
= $1600000
ANNUAL NET CASH FLOW
= NET INCOME + DEPERICATION
= $250000 + [($1600000 - $350000) / 8]
= $250000 + $156250
= $406250
SALVAGE VALUE
= $350000
NPV
= -$1600000 + $406250 * PVIFA 20%, 8 PERIODS + $350000 * PVIF 20% *PERIOD
= -$1600000 + $406250 * 3.8372 + $350000 * 0.2326
= -$1600000 + $1558862.5 + $81410
= $40272.5
4./
AS THE NPV IS GREATER THAN 0 OR POSITIVE THE IRR IS GREATER THAN 20%
Explanation:
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Answer and Explanation:
The computation of the dividend per share for each class of stock for four years are as follows
Preferred stock
= 25,000 shares × $25 × 3%
= $18,750
The dividend per share is
= $18,750 ÷ 25,000 shares
= $0.75
Now for the first year
= $7,250 ÷ 25,000
= $0.29
And the 0 is for Common stockholders
For the second year
Preferred stock
= $11,750 ÷ $25,000
= $0.47
And the 0 is for Common stockholders
For the third year
Preferred stock
= $0.46 + $0.28 + $0.75
= $1.49
And for the Common stockholders
= $27,900 ÷ 31,000 shares
= $0.9
For the fourth year
Preferred stock = $0.75
And, for the common stockholders
= $94,860 ÷ 31,000 shares
= $3.06
