Answer:
Monthly payment = $769.27
Explanation:
First we have to determine the future value of the ordinary annuity:
Payment = $235.15
N = 20 * 12 = 240
Rate = 3.2% / 12 = 0.267%
Using a financial calculator and the FV function, the FV = $78,910.41
Again, using the financial calculator or Excel, you can determine the monthly payment:
N = 10 / 12 = 120
Rate = 0.267%
PV = $78,910.41
FV = $0
Monthly payment = $769.27
False
A corporation wouldn't have perpetual, or everlasting, life if the death of one of its shareholder could end it. Perpetual means never ending.
Answer:
D. Simon, who is baking a cake that will be sold in a bakery
Explanation:
Simon is the producer here because he is producing a product to sell on the market.
Answer:
Unit of measure concept
Explanation:
The definition for a unit of measure refers to a common principle used throughout accounting, whereby all activities should be reported uniformly using the same currency. For instance, a business that holds its documents in just the U.S. will report its whole dealings in U.S. dollars, whereas a German company will report all its payments in euros.
If a transaction includes transactions or transfers in another currency, the sum is translated until being registered to the domestic currency utilized by an entity. Without a specific standard unit, financial reports will be impossible to generate.
Answer:
the formula used to calculate the cost of equity (required rate of return) based on the bond yield plus risk premium is fairly simple:
cost of equity (Re) = yield of debt (bonds) + firm's risk premium = 11.52% + 3.55% = 15.07%
I'm not sure if the question was copied correctly or not, so I looked for similar questions and it included different numbers.
<em>The Harrison Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Harrison's bonds yield 10.28%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Harrison's cost of Internal equity is: = 10.28% + 4.95% = 15.23%</em>
<em>Another question: </em>
<em>The Kennedy Company is closely held and, therefore, cannot generate reliable inputs with which to use the CAPM method for estimating a company's cost of internal equity. Kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. Based on the bond-yield-plus-risk-premium approach, Kennedy's cost of internal equity is: = 11.52% + 4.95% = 16.47%</em>
