Answer:
present value = $8396.19
Explanation:
given data
cash flow = $10,000
rate r = 6 %
time period t = 3 years
to find out
present value of the note
solution
we get here present value that is expressed as
present value = 
....................1
put here value and we will get present value
present value = 
solve it we get
present value = $8396.19
The third one is most appropriate ! as it shows that the money can be stored and later we can use !
Answer:
The value of the stock = $19.64
Explanation:
According to the dividend valuation model, <em>the value of a stock is the present value of the expected future cash flows from the stock discounted at the the required rate of return.</em>
Year Workings Present value(PV)
1 $1 × (1.22) × 1.11^(-1) = 1.10
2 $1 × (1.22)^2 ×(1.11)^(-2) = 1.21
3 $1 × ((1.22)^2 × (1.05))/0.11-0.05) = 21.35 ( PV in year 2 terms)
PV (in year 0) of Year 3 dividend = 21.35 × 1.11^(-2)
= 17.33 (see notes)
<em>The value of the stock</em> = $1.10+ $1.21 + 17.3
= $19.64
Notes:
<em>Note the growth applied to year 3 dividend gives the PV in year 2 terms. So we need to re-discount again to year 0.</em>
<em />
The value of the stock = $19.64
Answer and Explanation:
The journal entry to record the sales transaction is given below:
On April 10
Cash Dr $25,725
To Sales revenue $24,500
To Sales tax payable $1,225
(Being the sale is recorded)
Here cash is debited as it increased the assets and revenue & sales tax payable is credited as it increased the revenue & liabilities
Answer:
Choosing alternative B would increase net income by $17,100
Explanation:
The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:
Alternative A Alternative B Difference between A&B
Revenues $146,100 $185,900 $39800
Costs ($104,400) ($127,100) ($22700
)
Net income $41,700 $58,800 $17,100
Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100
r
