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Pachacha [2.7K]
4 years ago
15

Russia Corporation obtained a $50,000 note receivable from a customer on June 30, 2018. The note, along with interest at 6%, is

due on June 30, 2019. On September 30, 2018, Russia discounted the note at Wells Fargo. The bank's discount rate is 10%. What amount of cash did Russia receive from Wells Fargo?
Business
1 answer:
maxonik [38]4 years ago
8 0

Answer:

The amount of cash did Russia receive from Wells Fargo is $49,025

Explanation:

* Since the receivable is charged with 6% of the interest rate for one-year, the amount Russia Corporation will receive on June 30th 2019 is: Principal + Interest on the principal = 50,000 + 50,000*6% = $53,000.

* In 30th September 2019, it is 9-month to the maturity of the Receivable valued at $53,000 and the bank charge 10% on the discount, so the cost of discount will be: 53,000 x 10% x 9/12 = $3,975

=> The total cash received by Russia from the Bank = Receivable plus interest on it to be collected on 30 June 2019 - Discount cost = 53,000 - 3,975 = $49,025.  

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3 years ago
Avocado Incorporated just paid a dividend of $3. An analyst expects this dividend to grow at a rate of 12% for the next 3 years.
yuradex [85]

Answer:

The most you should pay for this stock is 126.89

Explanation:

The dividend in years 1 – 3 will grow at 12% and then at 5% forever.  

We had to get the PV for the dividends in years 1-3 (year 3 also includes the estimated future value of the stock).

We used our calculators to find the PV of each year at the 8% discount rate.  Finally we will add them all together to get the final answer.

We find the future dividends using g =12%

Dividend in year 0 --->

Dividend in year 1 ---> 3.36

Dividend in year 2 ---> 3.76

Dividend in year 3 ---> 4.21

Dividend in year 4 ---> 4.43

Now we will calculate the present value of the future dividends using r = 8%

Stock Value assuming constant growth rate  = 147.52 --(a)

PV in year 1 ---> 3.11

PV in year 2 ---> 3.23

PV in year 3 ---> 120.45  --(discounting (a))

= 120.45 + 3.23 + 3.11

= 126.89

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3 years ago
Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line.
Ratling [72]
E. structural is the answer
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3 years ago
g Assume the following sales data for a company: Current year $764,442 Preceding year $509,074 What is the percentage increase i
IgorLugansk [536]

Answer:

50.16%

Explanation:

The percentage increase in sales from the preceding year to the current year can be calculated as:

\frac{P_c-P_p}{P_p}\cdot 100

where:

P_c is the sale for the current year

P_p is the sale for the preceding year

From the sales data of this problem, we have:

P_c=\$764,442 (current year)

P_p=\$509,074 (preceding year)

Therefore, the percentage increase in sales is:

\frac{764,442-509,074}{509,074}\cdot 100=50.16\%

5 0
3 years ago
Free or minimal cost items offered by companies in order to entice customers to buy their product are called?
erma4kov [3.2K]

Answer:

Price packs

Explanation:

  • a type of sales promotion where customers are given a discount off the product's regular price; the discount is typically marked, or "flagged," prominently on the label or package; also known as a "cents-off" deal.
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To learn more about it, refer

to brainly.com/question/25689052

#SPJ4

6 0
1 year ago
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