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3 years ago

Which methods predicts the amount by which the value of a firm will change if a project is accepted?

Business

1 answer:

Rasek [7]3 years ago

6 0

Answer:

The correct answer is Net present value.

Explanation:

The Net Present Value (NPV), also known as Net Present Value (NPV) or Net Present Value (NPV), is an investment criterion that consists of updating the payments and payments of a project or investment to know how much will be earned or lose with it.

The VPN is, therefore, a measure of the benefit that an investment project yields throughout its useful life.

It is the equivalent in current monetary units of all income and expenses, present and future that constitute a project.

The Net Present Value is a central tool in the discount of cash flows, used in the fundamental analysis for the valuation of listed companies.

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Union Local School District has a bond outstanding with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity.

mafiozo [28]

Answer:

$4,420.35

Explanation:

Bond Price = $C x [1 - (1 + r)^{-n} / r] + F / (1 + r)^{n}$

Where:

C = Coupon
r = Yield to Maturity
n = compounding periods to maturity

Now we plug the amounts into the formula =

$Bond Price = $140 x [1 - (1 + 0.034)^{-32} / 0.034] + $5,000 / (1 + 0.034)^{32}$

$Bond Price = $4,420.35$

3 0

3 years ago

You have a current credit card balance of $450.00, which you are paying off so you can close the account. No new purchases have

lesantik [10]

Answer:

It's Best to Pay Your Credit Card Balance in Full Each Month

Explanation:

Leaving a balance will not help your credit scores—it will just cost you money in the form of interest. Carrying a high balance on your credit cards has a negative impact on scores because it increases your credit utilization ratio.

5 0

3 years ago

Art, Inc., has 2,500 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock out

stepladder [879]

Answer:

The amount of dividend received by common stockholders in 2017 = $7500

Explanation:

The preference shares are cumulative which means the 2015 dividend on cumulative preference shares will be paid in the next year when dividend is declatred.

The total dividend on preference shjares is = 2500 * 100 * 0.05 = $12500

In 2016 dividend of 22500 is declared and paid.

Out of this 22500, 12500 relates to prefernece dividend for 2015.

The remaining 10000 relates to 2016 preference dividend. Thus, 2500 of 2016 preference dividned is outstanding and will be paid in 2017.

In 2017 out of 22500, 15000 (12500 + 2500) dividendd is paid to preference share holders.

The amount of dividend received by common stockholders in 2017 = 22500 - 15000 = $7500

7 0

3 years ago

Henry wants to obtain an entry-level accounting position at a major accounting firm. Which educational degree will assist him in

PilotLPTM [1.2K]

Answer:

C. accounting specialization certificate

Explanation:

entry level position start with a short certificate in accounting

6 0

2 years ago

Read 2 more answers

Bonner Corp.'s sales last year were $415,000, and its year-end total assets were $355,000. The average firm in the industry has

koban [17]

Answer:

$182,083

Explanation:

The computation of the total assets by considering the total assets turnover is shown below:

Total assets turnover = Sales ÷ total assets

2.4 = $415,000 ÷ total assets

So, the total assets equal to

= $415,000 ÷ 2.4

= $172,917

So, the assets is reduced by

= Year-end total assets - calculated assets

= $355,000 - $172,917

= $182,083

5 0

3 years ago