Answer:
Explanation:
Cost of machine - $80000
Useful life - 5 years
Salvage value -$5000
Depreciable amount = 80000-5000= 75000
Annual depreciation = 75000/5 = 15000
Year DR Accum Dep
Cost 8000
1 Depreciation 15000 15000
2 Depreciation 15000 30000
Year 3 Depreciation 15000 45000
Year 4 Depreciation 15000 60000
Year 5 Depreciation 15000 75000
Financial statement template
Balanced sheet
Cash asset + Non cash asset = liabilities + Equity
Cash asset + 65000 = liabilities + equity
Income statement
Revenue - expenses = Net income
Revenue - 15000 - Net Income
Answer: After-tax cost of debt is 7.8%.
Explanation:
Given that,
coupon = 10% (outstanding bonds)
yield to maturity (YTM) = 12%
marginal tax rate = 35%
The after-tax cost of debt:
After-tax cost of debt = YTM (1 - Tax rate)
= 12% (1 - 0.35)
= 0.12 (0.65)
= 0.078
= 7.8%
YTM is used in the after-tax calculation because it represents the true pre-tax cost of debt to the issuer.
Therefore, the after-tax cost of debt is 7.8%
Restrictive covenants "were rendered unenforceable by Shelly v. Kraemer in 1948."
This is evident by the Supreme Court decision in 1948 during the case of Shelly v. Kramer when the court ruled that the 14th Amendment prohibits the court from enforcing race discrimination in real estate contracts.
The 14th Amendment, which was ratified on July 9, 1868, stated that all the citizens of the United States have equal protection under the law.
Thus, no American citizens shall be deprived of life, liberty, or property by any state law.
Hence, in this case, it is concluded that the correct answer is option A. "were rendered unenforceable by Shelly v. Kraemer in 1948."
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Answer:
The worth of stock today is $12.17.
Explanation:
A Multi-Period Dividend Discount Model should be used to determine the worth of stock today.
<u>Year-1</u> <u>Year-2</u> <u>Year-3</u> <u>Year-4</u>
Dividends - $.80 $1.10 $1.50
Discount Factor - .7763 .6840 .6026
Present Values - .6210 .7524 .9039
Perpetuity (1.50)*(1 + 4%) = $1.56
Terminal Value = 1.56 / (13.5% - 4%) = $16.4210
PV of Terminal Value = Terminal Value * Discount Factor
⇒ PV of Terminal Value = 16.4210 * (1.135)^(-4) = $9.8950.
Add the Present values of Dividends with the PV of Terminal Value to get the Stock Price of Today.
⇒Stock Price = .6210 + .7524 + .9039 + 9.8950 = $12.17.
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Answer: the number of failing banks.
Explanation:
The Savings and Loan Crisis lasted from the 1980s to the 1990s and saw the failure of 1,043 Savings and Loan associations (S&Ls). These small "banks" accept deposits and use them to create loans for their members.
The problem with these S&Ls was that they were making losses on the loans they gave out and instead of getting out of business, they engaged in speculative trading to offset their gains and lost even more money leading to the government closing them down.