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3 years ago

Question 6

Business

1 answer:

AleksAgata [21]3 years ago

6 0

Answer:

The answer is,

O To raise money for the corporation.

Explanation:

Issuing share is a method of financing for a corporation. Company can borrow money from external parties such as banks or issue debentures as well. However, the cost of such borrowings tends to be higher than issuing equity stocks and there are many legal necessities as well in such a process.

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Firm X purchased a piece of equipment exactly 6 years ago. The piece of equipment had a purchase price of $ 5,726,489 , a salvag

In-s [12.5K]

Answer:

Book value= 4357882

Explanation:

Giving the following information:

Purchase price= $5,726,489

Useful life= 24 years

Salvage value= $252,069

To calculate the book value, we need to determine the accumulated depreciation. We will use the straight-line method to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (5,726,489 - 252,069)/24

Annual depreciation= $228,101.25

Now, the accumulated depreciation:

Accumulated depreciation= 228,101.25*6= $1,368,607.5

Finally, the book value:

Book value= purchase price - accumulated depreciation

Book value= 5,726,489 - 1,368,607.5

Book value= $4,357,881.5

7 0

3 years ago

Federal obligations usually issued for maturities in excess of five years are called: _______

valentinak56 [21]

Answer: b. Treasury Notes

Explanation:

The question is a bit confusing to answer unless a mistake has been made in it.

Treasury Notes are Federal obligations that mature between 2 - 10 years so would be the correct answer for this question as this would include bonds in excess of five years till the 10th year.

Treasury Bonds on the other hand mature after 10 years.

If there is a mistake in the question and you instead meant to write 10 years instead of 5, the answer would be Treasury Bonds.

If not, the answer is Treasury Notes.

5 0

3 years ago

Suppose a parcel of land promises to return $750 per year per acre. what is the capitalized value of the land if the interest ra

sergij07 [2.7K]

A capitalized value of land is the value of the land calculated on Total return per year divided by the interest rate.

The capitalized value of land = Return on land per year ÷ Interest rate

Where Return on land per year = $750

Interest Rate = 7%

The capitalized value of land = $ 750 ÷ 0.07

= $ 10,714.29

Therefore, the capitalized value of land if the interest rate is 7% is $ 10,714.29.

6 0

3 years ago

if you start making $265 monthly contributions today and continue them for four years, what is the furture value if the compound

galina1969 [7]

Answer:

FV= $15,482.98

Explanation:

Giving the following information:

Monthly investment= $265

Number of periods= 12*4= 48

Interest rate= 0.0975/12= 0.00813

To calculate the future value, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

FV= {265*[(1.00813^48) - 1]} / 0.00813

FV= $15,482.98

5 0

3 years ago

Vasudevan Inc. recently reported operating income of $2.90 million, depreciation of $1.20 million, and had a tax rate of 40%. Th

babymother [125]

Answer:

2.34 million

Explanation:

Vasudevan incorporation reported an operating income of $2.90 million

The depreciation is $1.20 million

The tax rate is 40%

= 40/100

= 0.4

The firm's expenditure on fixed assets and net operating working capital is $0.6 million

Therefore, the free cash flow can be calculated as follows

Free cash flow= operating profit-tax+depreciation-expenditure

= 2.90-(2.90×0.4)+1.20-0.6

= 2.90-1.16+1.20-0.6

= 2.34

Hence the free cash flow is 2.34 million

4 0

3 years ago