Answer:
It will return 1,936,000 dollars
from which 336,000 will be interest
Explanation:
We solve using the future value of a lump sum:
Principal 1,600,000.00
time 2.00
rate 0.10000
Amount 1,936,000.00
We calculate interst by the different os the amount borrow and the amount returned:
1,936,000 - 1,600,000 = 336,000
I think that the answer would be E.
As per the dividend distribution model, the cost of equity = D1/P0 + g
where D1 = next year's dividend = 1.10
P0 = Current stock price = 21.80
g =growth rate = 4.5% =0.045
Cost of equity = 1.10/21.80 + 0.045 = 0.095458 = 9.5458% = 9.55%(Rounded)
Answer:
The correct answer is A.
Explanation:
Giving the following information:
On October 1, 2014, Mann Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= 60,000/5=12,000
3 months depreciation= 12,000/12*3= 3,000
Answer:
NPV= 603.94
Explanation:
Giving the following information:
A business promises to pay the investor of $6000 today for a payment of $1500 in one year, $3000 in two years, and $3000 in three years.
We need to calculate the net present value using the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
For example:
Year 2= 3,000/1.06^2= $2,669.99
NPV= 603.94
