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3 years ago

What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

1 answer:

3 0

Use
$F=P(1+i)^n$

Substituting
F=1000, P=863.84, n=3
solve for i
$1000=863.84^(1+i)^3$
solving for i
=>
$i=(\frac{1000}{863.84})^{\frac{1}{3}}-1$
=0.0500

Answer: the annual interest rate is 5%

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Becky only eats out at Macaroni Grill and eats out three times per month. She receives a raise from $33,200 to $33,500 and decid

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Answer:

55.58

Explanation:

Data provided in the question;

Initial demand per month, Q₁ = 3

Final demand per month, Q₂ = 5

Initial price, P₁ = $33,200

Final price, P₂ = $33,500

Now,

elasticity of demand using midpoint method is calculated as :

= $\frac{\textup{percent change in demand}}{\textup{percent change in supply}}$

= $\frac{\frac{Q_2-Q_1}{\frac{Q_1+Q_2}{2}}}{\frac{P_2-P_1}{\frac{P_1+P_2}{2}}}$

on substituting the respective values, we get

= $\frac{\frac{5-3}{\frac{5+3}{2}}}{\frac{33,500-33,200}{\frac{33,200+33,500}{2}}}$

= $\frac{\frac{2}{4}}{\frac{300}{\frac{66,700}{2}}}$

= $\frac{0.5}{\frac{300}{33,350}}$

= 55.58

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4 years ago

Champagne of the South, Inc., a manufacturer of bottled sweet tea, had the following beginning and ending inventories for the

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Answer:

total manufacturing cost added for the period 105,169

Cost of goods manufactured 106,064

Cost of goods sold 110,564

Explanation:

First, we need to know the amount of direct materials used in production.

beginning raw materials 10,000

purchase 27,000

ending (1,702)

indirect materials (2,129)

direct materials 33,169

now, we calculate the cost added during the period

direct materials 33,169

direct labors 30,000

overhead 42,000

total cost added 105,169

next step, we calculate the cost of goods manufactured from the WIP

WIP 17,895

added 105,169

WIP ending (17,000)

COGM 106,064

And last, the cost of goods sold

beginning finished goods 21,000

COGM 106,064

ending finished goods (16,500)

COGS 110,564

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4 years ago

A movie theater substantially decreases the price of its soda during the same week that a heavily advertised new movie is being

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Answer:

Price and quantity both increase

Explanation:

The decrease in the price of soda can caused increase in demand of soda. But because customers like to enjoy movies,soda and popcorn together, the increase in demand of popcorn is possible, which can cause increase in price and quantity of popcorn.

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4 years ago

Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not

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Answer:

C. VL = VU + PV(Tax Shield) - PV(CFD)

Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The answer is C as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

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4 years ago

The intangible assets section of Marigold Corporation's balance sheet at December 31, 2022, is presented here.

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Answer:

Journal entries to record the 2023 amortization expense for intangible assets.

Date Accounts Titles and Explanation Debit Credit

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($71,800*1/10 + $45,000 * 1/9

+ $40,000*1/10*6/12)

Patents $14,180

(To record amortization of patents)

Dec 31 Amortization Expense - Copyrights $6,335

($50,500*1/10 + $257,000*1/50*3/12)

(To record amortization of copyrights)

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3 years ago