Answer:
Results are below.
Explanation:
<u>To calculate the future value, we need to use the following formula:</u>
FV= PV*(1+i)^n
a) i= 0.04 annually compounded
n= 5
PV= $625
FV= 625*(1.04^5)
FV= $760.41
b) i= 0.04/2 = 0.02 semiannually compounded
n= 5*2= 10
PV= $625
FV= 625*(1.02^10)
FV= $761.87
c) i= 0.04/4 = 0.01 quarterly compounded
n= 5*4= 20
PV= $625
FV= 625*(1.01^20)
FV= $762.62
d) i= 0.04/12 = 0.0033 monthly compounded
n= 5*12= 60
PV= $625
FV= 625*(1.003333^60)
FV= $763.11
Answer:
Growth stocks; Long-term bonds
Explanation:
If you believe the economy is about to go into a recession and your portfolio consists of growth stocks, defensive stocks and long-term bonds, you might change your asset allocation by selling<u> Growth stocks</u> and buying <u>Long term bonds.</u>
As in the given case, the economy seems to be in trouble and chances that it may go into recession, then there is a high-risk float in the money market which may reduce the growth of stocks and long term bonds have fixed income, therefore, while allocating assets during the recession, people should sell growth stocks and buy long term bonds.
Answer:
$112,800
Explanation:
The computation of the total amount of current asset reported is as follows:
= Cash + account receivable + supplies + prepaid rent
= $53,000 + $15,000 + $8,800 + $36,000
= $112,800
Hence, the amount reported is $112,800
We simply added the above four items so that the current asset value could come
The number of shares purchased = 30 shares
Annual dividend per share = $ 0.42
Total annual dividends = Number of shares purchased × Annual dividend per share
Total annual dividends = 30 shares × $ 0.42 = $ 12.60
Thus, the total annual dividends = $ 12.60
