Which of the following is the main incentive for a manufacturer to sell a product?

What is the present value of 4360 to be received at the beginning of each of 30 periods discounted at 5% compound interest

Sloan [31]

Answer:

The right solution is "70375.08".

Explanation:

Given that,

Present value,

= 4360

Interest rate,

= 5%

Time period,

= 30

Now,

The present value of inflows will be:

= $(1+rate)\times \frac{Present \ value[1-(1+Interest \ rate)^{-time \ period}]}{rate}$

= $1.05\times 4360\times \frac{[1-(1.05)^{-30}]}{0.05}$

= $4360\times 16.1410736$

= $70375.08$

5 0

3 years ago

Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $18

Fantom [35]

Answer:

Levered, Inc. and Unlevered, Inc.

Equity shares in the Levered, Inc. represents a better value.

Explanation:

a) Data and Calculations:

Levered, Inc. Unlevered, Inc.

Debts at 8% 65 million $0

Outstanding shares 1.9 million 3.8 million

Market price per share $98 $71

Equity value $186.2 million $269.8 million

Expected EBIT $18 million $18 million

Interest ($65 million * 8%) $5.2 million $0

Net income $12.8 million $18 million

Earnings per share $6.74 $4.74

Dividends per share $6.74 $4.74

b) The value of the equity shares in the Levered Inc. would have increased more if both firms pay taxes because of the tax advantage gained by deducting interest expense from the earnings before taxes. This shows that financial leverage increases the value of equity shares.

5 0

3 years ago

Identify the uses of generally accepted accounting principles (GAAP). A. Independent accountants use GAAP to determine the amoun

lora16 [44]

Answer:

The correct option is;

B. Companies use GAAP when preparing financial statements

Explanation:

Generally Accepted Accounting Principles (GAAP) are the guidelines with regards to the standards, principles, practices and procedures of financial statement compilation by accountants issued by the Financial Accounting Standards Board (FASB). It is a requirement that all publicly quoted companies make use of GAAP for their financial compilation.

GAAP comprises of the generally accepted accounting records reporting and recording methods as well as policy board standards of accounting procedures.

7 0

3 years ago

An ISP is granted a block of addresses starting with 150.80.0.0/16. The ISP wants to distribute these blocks to 2600 customers a

stepan [7]

A the first groupings has 200 medium-side busi es-es each needing 128 addresses

4 0

3 years ago

Predict how sports and entertainment marketing will change over the next decade.

Kitty [74]

Answer:

marketing will change the most over the next 10 years because location, browsing, and buying will be increasingly co-mingled. Analysts will use technological and psychological triggers to help us all buy more, and understand why we're buying.

Explanation:

3 0

3 years ago

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