Answer:
r= .0901, or 9.01%
Explanation:
N=18, PV=73,000, FV=345,000, I=? 9
Therefore:
V = PV(1 +r)t
= (FV/PV)1/t– 1
r= ($345,000/$73,000)1/18– 1
r= .0901, or 9.01%
The annual rate of interest the person must earn on the investment to cover the cost of the child’s college education is 9.01%
Answer:
False.
Explanation:
A direct mailer can be defined as a form of marketing which involves the use of a mail service such as a courier or postal service to physically deliver a piece of promotional product or material to a target audience such as home or business. Some examples of a direct mailer are catalogs, postcards, solicitation letters, flyers, coupons, brochures etc.
<em>Hence, a direct mailer falls under the category of marketing, not sales.</em>
Answer:
C. $10,000 positive.
Explanation:
The computation of the amount that should be included is shown below:
= (Option strike price - spot rate) × purchased put options
= ($2.17 - $2.13) × 250,000
= $10,000
As the spot rate is less than the strike price so automatically there is a gain of $10,000
Hence, the option c is correct
Since the preferred stocks are cumulative in nature, the dividend amount not paid in the current year will be accumulated and paid in the next year.
Preferred dividend to be paid in 2017 = Value of preferred stock x Dividend rate
= (4700 x $50) x 5%
= 11750
Dividend to be paid in 2018 = same as 2017 as no new preferred stock issued
= 11750
Total dividend to be paid in 2018 = Dividend to be paid in 2018 + Dividend to be paid in 2017 – Dividend paid in 2017
= 11750 +11750 -7900
= $15600
Answer:
The 2016 operating cash flow is $56,905
Explanation:
The computation of the operating cash flow is shown below:
Operating cash flow = Sales - costs - other expenses - depreciation expenses - taxes + depreciation expense
= $162,500 - $80,000 - $3,300 - $9,000 - $22,295 + $9,000
= $56,905
The interest expense should not be considered in the computation part. Hence, ignored it
