Answer:
$17,167
Explanation:
<em>The first step is to calculate amount of cash that would be charged</em>
<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>
Present value is = 2,221
<em>Then</em>
<em>The present value of the payment options is =</em>
<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>
<em>$520 * 22.396 + $10,000 * 0.5521</em>
<em>$11646 + $ 5521</em>
<em>$17,167</em>
<em>Therefore the amount of cash the car dealer would charge is $17,167</em>
Answer:
1.
<u>Net income increases</u><em>. - </em>Ability to pay Dividends increases.
Dividends are paid from Retained Earnings which are derived from Net Income. If Net income increases therefore, so does the ability to pay Dividends.
<u>More profitable investment opportunities are available</u> - Decreases Ability to pay Dividends.
If there are more profitable opportunities for investment available, the business will invest in those opportunities. By doing so they will reduce the amount of cash that they have which is cash that could have been paid as dividends.
<u>The firm increases its debt ratio</u>. - Ability to pay Dividends Increase
As a result of the company borrowing more money, there will be more money left to pay out dividends so more dividends will be paid.
2. A. Despite the fact that Dernham Burnham Inc.'s earnings tend to fluctuate from year to year, the company most likely pays a predictable, stable dividend each year.
Companies like Dernham that aim to please investors usually adopt a predictable, stable dividend policy every year so that the investors will have more faith in them and be sure of earnings every year. This will give them a higher rating with the investors.
Well the could put advertisements and coupons in the news papers to get people to know about there company more. or they could invest in other products and hope it helps them to make there business better, they could also read up on books and strategies for company's so they can steal there customers back. Sorry if my answer is all over the place.
Answer:
Annual depreciation 2020= $3,520
Explanation:
Giving the following information:
Purchase price= $25,000
Useful life= 10 years
Salvage value= $3,000
<u>To calculate the annual depreciation for 2020 under the double-declining balance, we need to use the following formula:</u>
Annual depreciation= 2*[(book value)/estimated life (years)]
<u>2019</u>:
Annual depreciation= 2*[(25,000 - 3,000) / 10]
Annual depreciation= $4,400
<u>2020</u>:
Annual depreciation= 2*[(22,000 - 4,400) / 10]
Annual depreciation= $3,520
A compound subject<span> is a </span>subject<span> made up of two or more simple </span>subjects<span> that are joined by a coordinating conjunction and that have the same predicate.</span>
