Answer:
The multiple choices are as follows:
a) 41.45
b) 42.40
c) 38.92
d) 40.22
The correct option is C,$38.92
Explanation:
The maximum price a prudent and rational investor would be willing to pay for a share of Valorous stock today is the present value of future cash flows promised by the stock.
The stock promised to pay dividend of $1.90 at year end ,$2.35 next year and would command a price of $41 per share at the end of next year.
Share price=$1.90/(1+8%)+$2.35/(1+8%)^2+$41/(1+8%)^2=$38.92
The above calculation makes of use of discounting factor which is given by 1/(1+r)^n
r is the cost of capital of 8%
n is the relevant of cash flow
Answer:
$9,352.27
Explanation:
25% of 1.2million
25/100×$1,200,000
=$900,000
Monthly mortgage Payment (p)=r(PV)/{1-(1+r)^-n}
Present value (PV)=$900,000
r=7.2%/12
=7.2/100÷12
=0.072/12
r=0.006
n= 144(12 years×12months)
P=r(PV)/{1-(1+r)^-n}
=0.006×$900,000/{1-
(1+0.006)^-144
=$5,400/{1 - (1.006)^-144}
=$5400/{1 - 0.4226}
=$5,400/0.5774
=$9,352.27
Answer and Explanation:
The two adjusting entries are as follows:
On May 31
Rent expense ($1,200,000 ÷ 5 months) $240,000
To Prepaid rent $240,000
(Being rent expense is recorded)
Here the rent expense is debited as it increased the expenses and credited the prepaid rent as it decreased the assets
On May 31
Unearned rent revenue Dr $148,800
To Ticket revenue $148,800
(Being unearned revenue is recorded)
Here the unearned rent revenue is debited as it decreased the liability and credited the ticket revenue as it increased the revenue
Answer:
The insured must submit written proof of the loss suffered (the reason of filing the claim).
Explanation:
Usually insurance companies have 30 calendar days to respond to a claim, (although that time may vary on some states).
Therefore if you have't received a response from them after one month, you should provide written proof that supports your claim, since the only excuse that the insurance company could give you, is that their investigation about the incident resulting in the claim is not over.