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4 years ago

What is the present value of a $1,200 payment made every year forever when interest rates are 4.5 percent

Business

1 answer:

ollegr [7]4 years ago

6 0

Answer:

26,666.67

Explanation:

A $1,200 payment is made forever

The interest rate is 4.5%

= 4.5/100

= 0.045

Therefore the present value can be calculated as follows

= 1,200/0.045

= 26,666.67

Hence the present value is 26,666.67

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Regarding distribution channels, the channel process includes all activities, beginning with the manufacturer and ending with th

s344n2d4d5 [400]

Regarding distribution channels, the channel process includes all activities, beginning with the manufacturer and ending with the final consumer. When products are developed the main goal is to get them into the hands of the consumer, the person making the purchase. Each channel is responsible for an individual task with the end goal being the same.

8 0

3 years ago

Orange Inc. earns a unit contribution margin of $15 for each SwagWatch it sells and $30 unit contribution margin for each Copper

boyakko [2]

Answer: $ 558,750

Explanation:

Contribution Margin (total) = Contribution Margin (SwagWatch) + Contribution Margin (CopperPod)

Contribution Margin = selling price * variable cost per unit

selling price (SwagWatch) = $15, variable cost (SwagWatch) = 5,000

selling price (CopperPod) = $30, variable cost (CopperPod) = 20,000

In 2017

Contribution Margin (total) =$ (15 * 5,000) + (30 * 20,000) = $ 675,000

Fixed Costs = Contribution Margin (total) - Pre-tax Income

Fixed Costs = $ (675,000 – 500,000) = $ 175,000

In 2018

Fixed Costs increases by 5% ⇒ $ [175,000 x (1 + 0.05)]

Fixed Costs = $ 183,750

Sales increases by 10% for each product ⇒

Contribution Margin (total) = $Contribution Margin (total)_{2017}$ * (1 + 0.1)

Contribution Margin (total) = $ [675,000 x (1 + 0.1)]

Contribution Margin (total) = $ 742,500

Pre-tax Income = Contribution Margin (total) - Fixed Costs

Pre-tax Income = $ (742,500 - 183,750) = $ 558,750

4 0

3 years ago

Computing and Interpreting Financial Statement Ratios.

statuscvo [17]

Answer:

a. Yes, the company was profitable as it is evidence by the positive net profit margin.

b. Yes, increase in asset turnover increases shows that the operating assets generate higher amount of sales than the last year.

Explanation:

a. Net Profit margin is the percentage (%) of the revenue remaining after all the expenses are subtracted from the sales. It states the amount of profit which a business could extract from the aggregate sales.

Yes, the company is profitable in the year 2015 as the business has positive net profit margin and it is also evidenced.

b. Assets turnover ratio is the one which measures the efficiency of the company or the business and its ability to generate the sales from the assets through comparing the net sales with the average aggregate assets.

Yes, the increase (last year it was 1.29, but now it increases from 1.29 to 1.42) states that the operating assets will generate higher amount of sales from the last year.

4 0

4 years ago

Which of the following are good choices for your appearance in an interview?

nexus9112 [7]

-dress nicely

-be prepared

-empathize

Where are your options? Anyway, I hope this helps!!! :)

4 0

4 years ago

Read 2 more answers

At December 31, 2021 and 2020, Cow Co. had 117,000 shares of common stock and 6,700 shares of 3%, $100 par value cumulative pref

laila [671]

Answer:

$5.55

Explanation:

Calculation to determine what the basic earnings per share was

Using this formula

EPS=Net income-(Value cumulative preferred stock percentage*Net income)/Shares of common stock

Let plug in the formula

EPS=$670,000-(3%*$670,000)/117,000

EPS=$670,000-$20,100/117,000

EPS=$649,900/117,000

EPS=$5.55

Therefore For 2021, basic earnings per share was: $5.55

8 0

3 years ago