Answer:
The future value of annual savings is $1,370.30
Explanation:
The amount of annual savings =(Shaan's premium +Anita's premium)*10%
Shann's premium is $790
Anita's premium is $645
Annual savings =($790+$645)*10%
=$143.5
The future value formula is given below:
=-fv(rate,nper,pmt,-pv)
rate is 5% annual interest rate
nper is the 8 years that is the duration of investment
pmt is the annual savings of $143.5
pv is the total amount invested now which is zero
=-fv(5%,8,143.5,0)
fv=$ 1,370.30
Answer:
13.7%
Explanation:
The weight to be placed on preferred while computing the company's weighted average cost of capital (WACC) is the market value of the preferred stock divided by the market value of the company as a whole.
market of preferred stock=5,000*$26=$130,000
Market value of the company=market value of common stock+market value of preferred stock+market value of bond
common stock market value=12,000*$39=$468,000
market value of bond=$400,000*87%=$348,000
Weight of preferred stock=$130,000
/($130,000
+$468,000+$348,000)=0.137420719
=13.7%
Answer:
E. Purchasing inputs such as raw materials, resources, equipment and supplies
Explanation:
In business, <u>Procurement</u><u> </u>is the process of acquiring goods/services in order to support operational activities.
It includes all the aspects related to a purchase: price ( estimates, biddings ) , payment terms, good specifications, quality, delivery, volumes, etc.
Answer:
3,000
Explanation:
As the income will be taxed at 25% the income tax liability will be for that amount
12,000 x 25% = 3,000
The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.
The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.
Answer:
-$11
Explanation:
Covered Call involves Buy stocks and Sell call options
Earning $2.89 by selling call. So, at stock price of $27, the payoff from options is $2.89 per option
Options Profits = $2.89 * 100
Options Profits = $289
Profit of stock = ($27 - $30) * 100
Profit of stock = -$300
Investor Net Profit = Profit of stock + Options Profits
Investor Net Profit = -$300 + $289
Investor Net Profit = -$11
