Answer:
$489,250
Explanation:
Market value of bonds and stock warrants
= ((500*1000*0.95)+(500*50))
= 475000+25000
= $500,000
Issue price bonds = 500000*1.03
= 515000
Carry value of bonds = ((500*1000*0.95)/500000)*515000
= (475000/500000)*515000
= $489,250
Answer:
The yearly economic cost for Fred's accounting business is $142,000.
Explanation:
Economic costs include both the explicit costs and the implicit costs.
Explicit costs are the expenditure on factors of production purchased from outsiders.
Implicit costs are the opportunity cost of owner provided resources.
Other expense is an explicit cost.
Foregone salary and foregone rent are the implicit costs.
So,
Economic cost = Foregone salary + Foregone rent + Other expenses
Economic cost = $95,000 + $22,000 + $25,000 = $142,000
Thus,
Answer:
Mark will have $19,878.70 at the end of six years
Explanation:
Use the following formula to calculate the present value of cash flows
PV = ![A [\frac{1 - (\frac{1+g}{1+r})^n }{r - g} ]](https://tex.z-dn.net/?f=A%20%5B%5Cfrac%7B1%20-%20%28%5Cfrac%7B1%2Bg%7D%7B1%2Br%7D%29%5En%20%7D%7Br%20-%20g%7D%20%5D)
Where
A = Investment = $2,000
g = growth rate = 4%
r = 15%
n = 6
Placing values in the formula
PV = ![2,000 [\frac{1 - (\frac{1+0.06}{1+0.15})^6 }{0.15 - 0.06} ]](https://tex.z-dn.net/?f=2%2C000%20%5B%5Cfrac%7B1%20-%20%28%5Cfrac%7B1%2B0.06%7D%7B1%2B0.15%7D%29%5E6%20%7D%7B0.15%20-%200.06%7D%20%5D)
PV = $8,594.11
Now calculate the future value in order to determine the amount Mark will have at the ned of six years
Future value = 
Where
PV = $8,594.11
r = 15%
n = 6
Placing values in the formula
Future value = 
Future value = $19,878.70
Answer:
b. 60%
Explanation:
The computation of percentage is assigned to Cost of Goods Sold is shown below:-
$ %
Sales $300 $100
Cost of Goods Sold $180 $60 ($180 ÷ $300) × 100
Gross Profit $120 $40 ($120 ÷ $300) × 100
Operating Expenses $45 $15 ($45 ÷ $300) × 100
Net Income $75 $25 ($75 ÷ $300) × 100
Percentage assigned to cost of goods sold = Cost of goods sold ÷ Sales × 100
= $180 ÷ $300 × 100
= 60%
Therefore for computing the percentage is assigned to Cost of Goods Sold we simply applied the above formula.
Answer-
What goods and services should be produced?
How should they be made?
Who consumes these goods and services?
