Answer:
$12.49
Explanation:
The computation of the expected current price is shown below:
But before that first we have to determine the current firm value which is
Current firm value = ($86 million ×1.10^1) ÷ 1.11^1 + ($86 million × 1.10^2) ÷ 1.11^2 + {($86 million × 1.10^2 × 1.04) ÷ (0.11 - 0.04)} ÷ 1.11^2
= $1,424.48 million
Now
Expected current share price is
= ($1,424.48 - $275 million + $100 million) ÷ 100 million shares outstanding
= $12.49
Answer: $252,000
Explanation:
Property worth $275,000, 4 weeks ago had 3 bedrooms and 3 bathrooms.
House to be appraised has 3 bedrooms and 2 bathrooms meaning it has one less bathroom than the other house.
Value of bathroom is $15,000 so;
= 275,000 - 15,000
= $260,000
House to be appraised was worth $260,000 4 weeks ago.
Prices have been reducing at $2,000 per week for four weeks.
= 2,000 * 4
= 8,000
Value of house = 260,000 - 8,000
= $252,000
True
Return to investment: margin+turnover
Margin-net operating income/ sales
Turnover-sales/average operating assets.
Answer:
The present value of the annuity is $73,091.50
Explanation:
Use the following formula to calculate the present value of the annuity
Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor for 6 years ]
Where
Annuity Payment = $1,000
Annuity factor for first 6 years = 1 - ( 1 + 16%/12 )^-(6x12) / 16%/12 = 46.10028344
Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820
Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163
Placing values in the formula
Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]
Present value of annuity = $46,100.28 + $26,991.22
Present value of annuity = $73,091.50
<span>monuments is the right answer </span>
