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Maksim231197 [3]
3 years ago
12

Knox Inc. is deciding between the two dividend payment plans below: Year Plan A Plan B 1$3.00$0.50 2$3.05$1.75 3$3.10$3.25 4$3.1

5$6.80 Stockholders are expected to discount Plan A by 15% and Plan B by 10%. Based upon the present value of the future dividends, which plan will the stockholders prefer?
Business
1 answer:
maks197457 [2]3 years ago
6 0

Plan B will be preferred

<u>Explanation:</u>

<u>year     Plan A           Discount (15%) Present value </u>

1        $3                   0.8695           $2.3085

2     $3.05                   0.7561           $2.306105

3      $3.10                      0.6575     $2.03825

4    $3.15                     0.5718           $1.80117

 total                                         $8.754025

<u>Year Plan B Discount (10%) Present value </u>

1        $0.5                0.9090         0.4545

2        $1.75      0.8264          1.4462

3       $3.25        0.7513       2.4417

4       $6.80          0.6230      4.644

         total                                  $8.9870

Thus, from the above calculation, it is clear that investment in plan B will be more fruitful as it will yield more amount of money as has been calculated by present value method.

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8 0
3 years ago
Please I need help on this Question! 10 POINTS***
poizon [28]

Answer:

I would say answer number 3. Debit cards access money in your account and credit cards are like a loan.

Explanation:

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5 0
2 years ago
A dozen eggs cost $0.96 in December 2000 and $1.82 in December 2017. The average wage for workers in private industries was $14.
pogonyaev

Answer:

the percentage in which the price of the dozen eggs rise is 89.58% or 90%

Explanation:

The computation of the percentage in which the price of the dozen eggs rise is shown below;

Percentage Change in Dozens egg price is

= (Price in 2017 - Price in 2000) ÷ Price in 2000 × 100

= ($1.82 - $0.96) ÷ $0.96 × 100

= 89.58% or 90%

Hence, the percentage in which the price of the dozen eggs rise is 89.58% or 90%

8 0
3 years ago
On January​ 1, 2019, Castle Services issued $ 174 comma 000 of sixminus ​year, 12 ​% bonds when the market interest rate was 11
Marysya12 [62]

Answer: Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

Explanation:

First and foremost, the cash payment will be calculated as:

= $174,000 × 12% × 6/12

= $174,000 × 0.12 × 0.5

= $10440

Interest expenses will be calculated as:

= $180000 × 11% × 6/12

= $180000 × 0.11 × 0.5

= $9900

Therefore, the journal entry to record the first interest​ payment would be:

Debit: Interest expense $9900

Debit: Premium on bonds payable $540

Credit: Cash $10440

8 0
2 years ago
One of the advantages associated with radio as an advertising medium is that it has a long exposure time. has a perishable messa
kiruha [24]

Answer:allows ads to be placed quickly

Explanation:

Radio advert might seems like not really in use but when adverts are placed it always hit targeted customers and mainly the adverts are placed immediately without delay once the necessary process has been completed.

5 0
3 years ago
Read 2 more answers
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