Answer:
TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]
TVM=839.49
Explanation:
An=34,720
t=4 yrs , ---> n=48 (4*12)
j=7.5 %.---> i=0.075/12
m=12
* i=j/m
*n=mt
TVM=An*i : [1-(1+i)^-n]
TVM=34,720*0.075/12 : [1-(1+0.075/12)^-48]
TVM =839.49 (round two decimal)
Answer:
a decrease of $39,000.
an increase of $39,000.
a decrease of $19,500.
an increase of $19,500.
The correct option is the last one,an increase of $19,500
Explanation:
The impact on net operating income when the department is eliminated in Fabio Corporation is the company would lose the contribution margin of $39,000 and avoidable fixed cost,hence overall effect of the elimination is the difference between the contribution margin lost and the avoidable fixed costs which is computed thus:
Lost contribution margin $39000
Unavoidable fixed cost $19,500
Total fixed costs
avoidable fixed cost=$78,000-$19,500=$58,500
decrease in overall net operating income=$58,500-$39,000=$19,500
Answer:
400
Explanation:
400 A larger increase in output and a
smaller decrease in the interest rate. A larger increase in output and a
smaller decrease in the interest rate. A larger increase in output and a
smaller decrease in the interest rate. A larger increase in output and a
smaller decrease in the interest rate. A larger increase in output and a
smaller decrease in the interest rate.
Answer:
<em>Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10
</em>
Explanation:
Given:
<em>The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120
</em>
<em>The Value of entities together in Economic state 1 = $160 + $20 = $180
</em>
<em>
Net equity in economic state 1 = Value of entities – total debt
</em>
<em>
= $180 - $120 = $60
</em>
<em>Then,</em>
<em>
The Value of entities in Economic state 2 = $40 + $80 = $120
</em>
<em>
Net equity in economic state 2 =
</em>
<em>= $120 - $120 = $0
</em>
<em>
The Both states are equally possible.
</em>
<em>
Expected value of combined entity = ($60 + $0)/2 = $30
</em>
<em>
Market value of Goodday equity before merger = $40
</em>
<em>
Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10
</em>
Answer:
32
Explanation:
First bounce = 13 / 14 × 10 = 130 /14
using geometric progression where the common ratio = 13/14, the first bound = 130/14
ar^n-1 < 1
substitute the values into the equation
130 /14 × 13/14^(n-1) < 1
(13/14)^n-1 < 1÷ (130/14)
(13/14)^n-1 < 14 / 130
take log of both side
log (13 /14)^n-1 < log ( 14/130)
n-1 log (13 /14) < log ( 14/130)
since log (13/14) negative
n-1 > (log( 14/130)) ÷ ( log (13/14)
n - 1 > 30.07
n > 30.07 + 1 > 31.07
The 32 bounce will the first less than 1 foot