NEED HELP PLZ A budget lists actual income and expenses to help create a financial plan.true or false

A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D

Kaylis [27]

Answer:

8%

Explanation:

The formula to compute the cost of common equity under the DCF method is shown below:

= Current year dividend ÷ price + Growth rate

where,

Current year dividend is $2

Price is $40

And, the growth rate is 3%

Now put these values to the above formula

So, the cost of equity would equal to

= $2 ÷ $40 + 3%

= 0.05+ 0.03

= 8%

6 0

3 years ago

The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because:

erica [24]

Answer:

D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning

industry even though their average social cost exceeds price.

Explanation:

When there is pollution as a result of the daily business, then it involves a huge social cost, as you cause harm to public.

But company's do not consider it in making the decision for business, as it generally do not impact the business in financial matters.

As even if the average cost is less then revenue the profit will be there to run the business.

But till the moment the financial impact is not strong of the social cost the pollution will not affect.

5 0

3 years ago

Crystal Lodging recorded $330,000 in revenues, $247,500 in expenses, and $45,000 of dividends for the year. The company began th

Brilliant_brown [7]

Answer:

b.$127,500 increase

Explanation:

Using Accounting Equation we can find thetotal increase in total assets:

Assets = Equity + Liabilities

Change in Assets = Change in Equity + Change in Liabilities

Change in Assets = $37,500 + $90,000

Change in Assets = $127,500

Total Change in equity and liabilities will be equal to the change in Assets.

So, the correct answer is b.$127,500 increase.

7 0

3 years ago

Calculate the following: The future value of lump-sum investment of $3,200 in four years that earns 6 percent. Round your answer

tresset_1 [31]

Answer:

(a) $4,040

(b) $3,434

(c) $348

(d) $3,265

Explanation:

(a) Calculate the following: The future value of lump-sum investment of $3,200 in four years that earns 6 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A.1 or the Garman/Forgue companion website.) Round Future value of a Single Amount in intermediate calculations to four decimal places. $

To estimate this, the formula for calculating future value is used as follows:

FV = PV * (1 + r)^n ………………………….. (1)

Where,

FV = future value = ?

PV = lump-sum investment = $3,200

r = interest rate = 6%, or 0.06

n = number of years = 4

Substitute the values into equation (1) to have:

FV = $3,200 * (1 + 0.06)^4

FV = $3,200 * (1.06)^4

FV = $3,200 * 1.2625

FV = $4,040

(b) The future value of $1,100 saved each year for three years that earns 4 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places. $

To calculate this, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (2)

Where,

FV = Future value of the amount after 3 years =?

M = Annual savings = $1,100

r = interest rate = 4%, or 0.04

n = number of years = 3

Substituting the values into equation (2), we have:

FV = $1,100 * (((1 + 0.04)^3 - 1) / 0.04)

FV = $1,100 * 3.1216

FV = $3,434

(c) A person who invests $1,800 each year finds one choice that is expected to pay 4 percent per year and another choice that may pay 7 percent. What is the difference in return if the investment is made for four years? Round your answer to the nearest dollar. (Hint: Use Appendix A.3 or the Garman/Forgue companion website.) Round Future value of Series of Equal Amounts in intermediate calculations to four decimal places. $

To do this, we first calculate the return of each of the 2 investments by using the the formula for calculating the Future Value (FV) of an Ordinary Annuity in part b above is used as follows:

Calculation of return at 4 percent

Where;

FV at 4% = Future value of the return after 4 years =?

M = Annual savings = $1,800

r = interest rate = 4%, or 0.04

n = number of years = 4

Substituting the values into equation (2), we have:

FV at 4% = $1,800 * (((1 + 0.04)^4 - 1) / 0.04)

FV at 4% = $1,800 * 4.2465

FV at 4% = $7,644

Calculation of return at 7 percent

Where;

FV at 7% = Future value of the return after 4 years =?

M = Annual savings = $1,800

r = interest rate = 7%, or 0.07

n = number of years = 4

Substituting the values into equation (2), we have:

FV at 7%= $1,800 * (((1 + 0.07)^4 - 1) / 0.07)

FV at 7% = $1,800 * 4.4399

FV at 7% = $7,992

Calculation of the difference in return

This is calculated as follows:

Difference = FV at 7% - FV at 4% = $7,992 - $7,644 = $348

(d) The amount a person would need to deposit today with a 7 percent interest rate to have $4,000 in three years. Round your answer to the nearest dollar. (Hint: Use Appendix A.2 or the Garman/Forgue companion website.) Round Present value of a Single Amount in intermediate calculations to four decimal places. $

To estimate this, the formula for calculating present value is used as follows:

PV = FV / (1 + r)^n ………………………….. (1)

Where;

PV = Present value or amount to deposit today = ?

FV = future value in three years = $4,000

r = interest rate = 7%, or 0.07

n = number of years = 3

Substitute the values into equation (1) to have:

PV = $4,000 / (1 + 0.07)^3

PV = $4,000 / 1.2250

PV = $3,265

4 0

3 years ago

Job Shadows typically last six weeks half day one to three days one semester

Inessa05 [86]

A job shadow usually lasts one day, but there are cases when they could last several days to give you a more in-depth look at a certain career or company.

7 0

3 years ago