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Salsk061 [2.6K]
3 years ago
8

If the one-year discount factor is 0.8333, what is the discount rate (interest rate) per year?

Business
1 answer:
yan [13]3 years ago
8 0

Answer:

20%

Explanation:

The computation of the discount rate per year is shown below:

As we know that

Discount factor = 1 ÷  (1 + Interest rate)^number of years

0.8333 = 1 ÷ (1 + Interest rate)^1

1 + Interest rate = 1 ÷ 0.8333

Interest rate  = 1.20 - 1

Interest rate = 0.20 or 20%

Hence, the interest rate is 20% by applying the discount factor formula which is shown above

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Bedrock Company reported a December 31 ending inventory balance of $412,000. The following additional information is also availa
lord [1]

Answer:

The correct balance for ending inventory is $390,000.

Explanation:

The first point discussing about the consigned goods requires no adjustment as the goods sent on consignment are reported as part of the consignor's inventory until they are sold and these goods are owned by the consignor In our case Bedrock Company is the consignor thus the amount $72000 of consigned goods which is included in Bedrock's inventory of 412000 is correct.

However, the amount of office supplies worth $22000 will be deducted from the ending inventory balance as this is not an inventory that Bedrock is keeping with the intention to resale. The office supplies are for business's own use thus this will be deducted from inventory amount.

The balance of ending inventory will be,

  • 412000 - 22000 = $390,000
8 0
3 years ago
Read 2 more answers
When supply and demand meet at the equilibrium point, prices in the market will:____________.
wolverine [178]
Prices in the market would Lower the price
5 0
3 years ago
Perhaps you think it will be easy to make responsible decisions regarding auto loans in your future . But , decision making can
Elina [12.6K]

Answer:

From this worksheet, I have noticed that following directions to receive your dream car is tricky as well as fun

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5 0
2 years ago
g A speculator buys a call option for $3, with an exercise price of $50. The stock is currently priced at $49, and rises to $55
azamat

Answer:

$53

Explanation:

Call option is $3

Exercise price is $50

The stock is currently priced at $49

It rises to $55 on the expiration date

Therefore the cost price at which the speculator will break even can be calculated as follows

= ($50-$3)+($55-$49)

= $47 + $6

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8 0
2 years ago
Suppose during 2014 that Federal Express reported the following information (in millions): net sales of $35,497 and net income o
Lorico [155]

Answer:

Asset turnover 1.42

Return on assets 0.39%

Explanation:

Here, we are asked to calculate the asset turn over and the return on assets.

Mathematically;

Asset turnover = Net sales/Average total assets

Net sales = $35,497

average total assets = (25,633+24,244)/2 = 24938.5

Asset turnover = 35,497/24938.5 = 1.42

The return on assets can also be calculated mathematically.

mathematically, return on assets = Net income/Average total assets

Net income = $98

Average total assets = 24,938.5 from above

= 0.0039 or 0.39%

5 0
3 years ago
Read 2 more answers
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