What is pulchritude

This morning, you borrowed $12,700 at an APR of 6.9 percent. If you repay the loan in one lump sum four years from today, how mu

Stolb23 [73]

Answer:

In Four years i will be paying $16,585.

Explanation:

In this question apply the time value of money techniques.The amount to be paid after 4 years is known as the Future Value and is determined by setting the parameters as follows:

Pv = $12,700

i = 6.9%

Pmnt = $0

N = 4

Fv = ?

Using a Financial Calculator, the Fv (Future Value) will be $16,585

Conclusion :

In Four years i will be paying $16,585.

4 0

3 years ago

A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to a. assi

mojhsa [17]

Answer:

<em>provide relevant revenue and cost data about each course of action.</em>

Explanation:

Accounting reports are extremely relevant for business decision making. It can help executives make more effective decisions based on periodic cost and revenue accounting data that will guide management to know the real situation of the company, and thus identify the best strategy to correct potential problems.

7 0

3 years ago

The following units are available for sale during the year:

irakobra [83]

Answer:

Instructions are below.

Explanation:

Giving the following information:

January 1 Beginning Inventory 10 units at $18 each

April 3 Purchase 30 units at $20 each

August 31 Purchase 28 units at $25 each

September 29 Purchase 17 units at $30 each

Ending Inventory= 21 units

First, we need to calculate the ending inventory using the FIFO (first-in, first-out) method.

The ending inventory is calculated using the cost of the last units incorporated into inventory.

Ending inventory= 17*30 + 4*25= $610

Now, we need to calculate the ending inventory using the LIFO (last-in, first-out) method.

The ending inventory is calculated using the cost of the firsts units incorporated into inventory.

Ending inventory= 10*18 + 11*20= $400

Finally, we need to calculate the ending inventory using the weighted-average inventory method.

average cost= (18 + 20 + 25 + 30)/4= $23.25

Ending inventory= 21*23.25= $488.25

8 0

4 years ago

ABC Corp. is expected to pay an annual dividend in the amount of $2.50 a share next year. This dividend constantly grows by 5 pe

ryzh [129]

Answer:

9.94%

Explanation:

The cost of equity can be determined from the constant dividend growth model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

50.60 = 2.5 / (r - 0.05)

50.60(r - 0.05) = 2.5

(r - 0.05) = 2.5 / 50.60

(r - 0.05) = 0.0494

r = 0.0494 + 0.05

r = 0.0994

r = 9.94%

5 0

3 years ago

You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays n

Ivenika [448]

Answer:

The value of the call option today is $14.29

Explanation:

The two-state stock pricing model is one that prices are based on the assumption that there is no arbitrage profit opportunity as well as the fact that the call option's value will be the present value(PV) of the expected future winnings for long call.

Now, value of the call option if the prices go up will be;

142 - 109 = $32

While if the prices go down, it will be;

76 - 109 = -$33

The call option in this case can only be utilized when the market value exceeds the exercise price.

Therefore, the expected winnings value after one year will be;

Value after one year = (32 × 0.5) + (0 × 0.5)

Value after one year = $16

We used 0 in the multiplication because the call wouldn't be utilized for when the prices go down.

one year from now the long call can be expected to earn $16 .

Thus, today the present value of this amount will be the price of the call option if we take into cognizance that here will be no arbitrage profit opportunity.

With risk-free rate of interest is 12%, we have;

PV = 16/1.12 = $14.29

3 0

3 years ago

What is pulchritude​

What is pulchritude