Answer:
-$285,000
Client should not invest in the project
Explanation:
Up-front cost : $300,000
Next year's revenue : $15,000
Real interest rate : 8%
Depreciation rate : 10%
<u>Determine how much profit the project will yield </u>
Profit = Revenue - cost
= 15,000 - 300,000
= - $285,000
No the Client should not invest in the project
Answer:
$265,500
Explanation:
Given that
Retained earning = $413,000
Net Loss = $88,500
Paid dividends to stockholders = $59,000
The computation of balance in Retained Earnings is shown below:-
Balance in Retained Earning = Retained earning - Net loss - Paid dividends to stockholders
= $413,000 - $88,500 - $59,000
= $413,000 - $147,500
= $265,500
generally considered personal property by law whether you own it or just rent it.
Answer: D. none of these.
Explanation:
When the earnings per share for a simple capital structure is being computed, then if the preferred stock is cumulative, it should be noted that the amount that should be deducted as an adjustment to the numerator (earnings) is referred to as the annual preferred dividend.
Therefore, from the options given, the answer will be none of these.
Answer:
5.75%
Explanation:
The computation of the yield on a bond with three years to maturity is shown below:
Given that
Yield on a one-year bond is 3%
The expected yield on one-year bonds for the next two years is 5% and 4%
And, the liquidity premium is 1.75%
So, the yield on a bond with three years to maturity is
= (3% + 5% + 4%) ÷ 3 years + 1.75%
= 4% + 1.75%
= 5.75%