1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
slega [8]
3 years ago
11

Linda Clark received $223,000 from her mother’s estate. She placed the funds into the hands of a broker, who purchased the follo

wing securities on Linda’s behalf:a. Common stock was purchased at a cost of $99,000. The stock paid no dividends, but it was sold for $161,000 at the end of three years.b. Preferred stock was purchased at its par value of $54,000. The stock paid a 6% dividend (based on par value) each year for three years. At the end of three years, the stock was sold for $39,000.c. Bonds were purchased at a cost of $70,000. The bonds paid annual interest of $1,500. After three years, the bonds were sold for $86,000.

Business
2 answers:
Nookie1986 [14]3 years ago
8 0

Answer:

Explanation:

check attached files below for explanation..

olya-2409 [2.1K]3 years ago
4 0

Question:

With a discount rate of 11% solve for the net present value:

Answer:

A) NPV 18,721.81

B) NPV -17.565,93

C) NPV  -3.451,97‬

Explanation:

a) we use the lump sum present value formula and then, compare against the cost.

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $161,000.00

time  3.00

rate  0.11000

\frac{161000}{(1 + 0.11)^{3} } = PV  

PV   117,721.8124

117,721.81 - 99,000 = 18,721.81

b) We solve forthe present value of the annuity of dividends and the lump sum of the sale price.

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $39,000.00

time  3.00

rate  0.11000

\frac{39000}{(1 + 0.11)^{3} } = PV  

PV   28,516.4639

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 3,240.00

time 3

rate 0.11

3240 \times \frac{1-(1+0.11)^{-3} }{0.11} = PV\\

PV $7,917.6357

Net present value

28,516.43 + 7,917.64 - 54,000 = -17.565,93

C) We solve forthe present value of the annuity of dividends and the lump sum of the sale price.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 1,500.00

time 3

rate 0.11

1500 \times \frac{1-(1+0.11)^{-3} }{0.11} = PV\\

PV $3,665.5721

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $86,000.00

time  3.00

rate  0.11000

\frac{86000}{(1 + 0.11)^{3} } = PV  

PV   62,882.4588

62,882.46 + 3,665.57 - 70,000 = -3.451,97‬

You might be interested in
When the value of investment A changes more and faster than the value of investments B and C, investment A has a higher _____.
Talja [164]
I think the most appropriate answer would be D. As other answers has nothing to do with this question.



I hope it helped you!
4 0
3 years ago
The production, purchase, and sale of goods in a world-wide market is known as the _____.
Akimi4 [234]
The answer you are looking for is

Global economy
8 0
3 years ago
Read 2 more answers
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the
vesna_86 [32]

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the  present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

8 0
3 years ago
Which of the following activities describes the opportunity cost of attending an economics class?
zhuklara [117]

Answer:

C is the correct option

Explanation:

Opportunity cost is a concept of Macroeconomic theory. It is also known as an alternative cost. It is the value of what one gives up to choose something else. In simple terms, we can say that it is the value of the road not taken. In the above question, the value of the activities one had to leave to attend the economics class woul be known as the Opprtunity cost.

5 0
3 years ago
A cash-flow budget uses the same format as a cash-flow statement. It is prepared on a monthly basis and it reflects budgeted inc
RideAnS [48]

Answer:

Surplus/Deficit

2016 27920

January 4980.20

February 2265.55

March 2090.55

April 2005.55

May 2473.89

June-9061.11

Explanation:

Annual Budget

Scott and Mary Cash-Flow Statement

2017

2016 Jan. Feb. Mar. Apr. May June

Income

Deon'

Scott s salary 59,000 5162.5 5162.5 5162.5 5162.5 5162.5 5162.5

(59000/12*1.05)

Marys salary 53,1004557.75 4557.75 4557.75 4557.75 4557.75 4557.75

(53100/12*1.03)

Scott bonus 2016 5000 Jan 5900

Interest & Dividends 150 12.5 12.5 12.5 12.5 12.5 12.5

(150/12)

1.

Total Income 117250 15632.75 9732.75 9732.75 9732.75 9732.75 9732.75

Expenditures

Fixed expenses

Mortgage 14976 1248 1248 1248 1248 1248 1248

(14976/12)

Sott's Federal Income Tax 12800 2212.5 1032.5 1032.5 1032.5 1032.5 1032.5 [(salary+Bonus)*20%]

Scott's State Income Tax 3840 663.75 309.75 309.75 309.75 309.75 309.75 [(salary+Bonus)*6%]

Scott's Social Security Taxes4896 846.28 394.93 394.93 394.93 394.93 394.93

[(salary+Bonus)*7.65%]

Mary's Federal Income Tax 10620 911.55 911.55 911.55 911.55 911.55 911.55 (Salary*20%)

Mary's State Income Tax 3186 273.47 273.47 273.47 273.47 273.47 273.47 (Salary 6%)

Mary's Social Security Taxes 4062 348.67 348.67 348.67 348.67 348.67 348.67 (Salary*7.65%)

Property Taxes

2016 4100 June 4100

Property Insurance

2016 1200 June 1200

Medical Insurance 2400 240 240 240 300 240 300

Automobile Insurance and Registration

2016 700 May 175 June 175 (700/4)

Savings for auto purchase June500 500 500 500 500 500

2.

Total Fixed expenses 62780 7244.21 5258.86 5433.86 5318.86 5258.86 10793.86

Variable expenses

Food 1620 135 135 135 135 135 135 (1620/12)

Entertainment 3000 250 250 250 250 250 250 (3000/12)

Dining out 4700 391.67 391.67 391.67 391.67 391.67 391.67 (4700/12)

Electric 350 29.17 29.17 29.17 29.17 29.17 29.17

(350/12)

Water and sewer 2016 800 Jan 200.00 April 200.00 (800/4)

Heat 1250 208.33 208.33 208.33 208.33 - - (1250/6)

Cable TV 3000 250.00 250.00 250.00 250.00 250.00 250.00 (3000/12)

Telephone 600 50.00 50.00 50.00 50.00 50.00 50.00

(600/12)

Cell phone 900 75.00 75.00 75.00 75.00 75.00 75.00

(900/12)

Gifts 2016 2000 Jan 1000.00 (2000/2)

Personal care 600 50.00 50.00 50.00 50.00 50.00 50.00 (600/12)

Medical expenses 3700 308.33 308.33 308.33 308.33 308.33 308.33 (3700/12)

Vehicle gas and maintenance 2530 210.83 210.83 210.83 210.83 210.83 210.83 (2530/12)

Charitable contributions 1500 250 250 250 250 250 250

(3000/12)

Vacation June 6000

3.

Total Variable expenses 26550 3408.333 2208.33 2208.33 2408.33 2000 8000

4.Total expenses

(Addition of solution 2+ solution 3)

89330 10652.55 7467.2 7642.2 7727.2 7258.86 18793.86

5.SURPLUS/(DEFICIT)

(Solution1 Total Income-Solution 4 Total Expenses)

27920 4980.20 2265.55 2090.55 2005.55 2473.89 -9061.11

6 0
3 years ago
Other questions:
  • On July 1, 2019, Sheffield Corp. pays $20,700 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fisca
    14·1 answer
  • Interview any local business owner and request him/her to identity any business problem that they are experiencing
    6·1 answer
  • If a company spends $20 million to install new footwear-making equipment with capacity to produce 1 million pairs of athletic fo
    15·1 answer
  • Overhead cost variance is: Multiple Choice The difference between the actual overhead incurred during a period and the standard
    12·1 answer
  • Which of the following would not work on a newspaper either in print or online form
    7·1 answer
  • Which type of economy best represents individual preferences and a lack of government interference?
    10·1 answer
  • True or False. For consumers, a credit card offers convenience.
    8·1 answer
  • In a research proposal, which section comes first?
    9·2 answers
  • Store A uses the newsvendor model to manage its inventory. Demand for its product is normally distributed with a mean of 500 and
    9·1 answer
  • Inflation is best described as _____.(1 point)
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!