Answer:
The correct answer is $20,211.84.
Explanation:
According to the scenario, the given data are as follows:
Payments (PMT) = $600
Interest rate = 7%
Growth rate = 3%
Time = 16 yeras
So, future value of growing annuity can be calculated by using following formula :
FV of growing annuity = Payment × ((1+ interest rate)^n - (1 + Growth rate)^n) / (Interest rate - Growth rate)
= 600 × ((1.07)^16 - 1.03^16) / (.07 - .03)
= 600 × ( 2.95216374857 - 1.6047064391 ) / (0.04)
= 600 × 33.6864
= $20,211.84
Hence, the correct answer is $20,211.84.
Answer:
aftertax cost of debt =5.63%
Explanation:
fisrt we need to know the formula for the yield to maturity
Yield to maturity (YTM)
YTM= ( I+(F-P)/n ) / ( 0.6P +0.4F)
YTM= (9 + ( 100-102.3) / 11 ) / (0.6*102.3 + 0.4*100)
YTM= 0.0867
YTM= 8.67%
after taxes we have...
8.67% (1-0.35%)
=0.0563
=5.63%
Answer:
True.
Explanation:
True, The given situation is true because the pleasure (utility) provided by Alpha is greater than the pleasure (utility) provided by the Beta. Therefore, a rational person will buy only that commodity which has a higher utility. Here, we can see the Alpha provides 10 units of utility or pleasure per dollar while Beta provides 8 units of utility or pleasure per dollars. So, only Alpha will be chosen.
Answer:
B. Regulators who are interested in keeping their jobs must please both the industry and co.
Explanation:
The share-the-gains, share-the-pains theory is one that states that holds that organizations/firms must take into consideration the demands of legislators (regulators), firms in the regulated industry and consumers of the regulated products.
Therefore, in share-the-gains, share-the-pains theory, regulators who are interested in keeping their jobs must please both the industry and consumers.
Option B is the correct answer.
Answer:
Explanation:
First of all, to make it easy, "Debit" will be written as "Dr" and "Credit" as "Cr"
General journal
April 2
Dr Cash $27 070
Dr Equipment $12 900
Cr Owner's Capital $39 970
April 2 No transaction has occurred
April 3
Dr Supplies $833
Cr Accounts Payable $833
April 7
Dr Rent Expense $546
Cr Cash $546
April 11
Dr Accounts Receivable $1160
Cr Revenue $1160
April 12
Dr Cash $2,589
Cr Unearned Revenue $2,589
April 17
Dr Cash $2,201
Cr Revenue $2,201
April 21
Dr Insurance Expense $100.30
Cr Cash $100.30
April 30
Dr Salaries Expense $1,020
Cr Cash $1,020
April 30
Dr Supplies Expense $122
Cr Supplies $122
April 30
Dr Equipment $5,266
Cr Capital $5,266
