Answer:
Explanation:
Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 12 percent.Year Project F Project G0 –$ 126,000 –$ 196,000 1 64,500 44,500 2 45,500 59,500 3 55,500 85,500 4 50,500 115,500 5 45,500 130,500 Required:(a) Calculate the payback period for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)Payback period Project F years Project G years(b) Calculate the NPV for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)Net present value Project F $ Project G $ (c) Which project should the company accept?
Answer:
b) decline
Explanation:
If people's trust in the banking system is reduced due to a surge in bank failures, the money expansion resulting from a new deposit will <u>decline</u>. This happens because people lost trust and hastily withdrawn their money deposited with the bank.
Answer:
g = 16%
dividends yield:
Year 1 4.60%
Year 3: 4.78%
<u>expected rate of return: </u>
year 1 20.6%
year 3 20.78%
<u></u>
Explanation:
<u>grow rate:</u>
D1 /D0 = g
1.16/1.00 - 1 = 0.16
1.3456/1.16 - 1 = 0.16
the grow rate is 16%
<u>dividend yield:</u>
dividends/stock price = dividend yield
1/21.7 = 0,0460 = 4.60%
1.3456/28.15 = 0,04780 = 4.78%
<u>expected rate of return: </u>
dividend yield + grow rate
4.60% + 16% = 20.6%
4.78% + 16% = 20.78%
Answer:
Sam’s Home Store can enforce the contract against Restore Construction Company
Explanation:
In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.
