Answer:
10%
25.14 years
Explanation:
A financial calculator can be used to solve these problems
PMT = $-1,100
PV = $5,355.26
FV = 0
N = 7
Compute I = 10%
PMT = $-25,000
FV = $1,387,311
I = 6%
PV = 0
Compute N = 25.14 years
Answer:
e. None of the above assumptions would invalidate the model
Explanation:
Incomplete question <em>"The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"</em>
<em />
According to dividend discount model,
P0 = D1/(R-G)
D1 - Dividend at t =1
R - Required rate
G - Growth rate
This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.
I would say that the market economy and westward expansion promoted the institution of slavery as in the new United States whereby in order to sell more say cotton at a cheap price (the market economy) then the landowners would employ slaves for cheap labour so as to extract maximum profit from their labour.
Answer:
DR Interest receivable 26,400
CR Interest revenue 26,400
Explanation:
As first lease has already been paid, the amount left of the lease is;
= 280,000 - 40,000
=$240,000
Interest is 11% so the interest to be received in December is;
= 11% * 240,000
= $26,400
This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.
Answer:
Total PV= $46,728.79
Explanation:
Giving the following information:
Cash flow:
Cf1= $8,000
Cf4= $16,000
Cf8= $20,000
Cf10= $25,000
Discount rate= 6%
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
Cf1= 8,000/(1.06^1)= 7,547.17
Cf4= 16,000/(1.06^4)= 12,673.50
Cf8= 20,000/(1.06^8)= 12,548.25
Cf10= 25,000/(1.06^10)= 13,959.87
Total PV= $46,728.79
