Answer:
$154.79
Explanation:
Note: See the attached file for the calculation of the present value of this annuity.
But, we first calculate the effective interest rate as follows:
r = Effective interest rate = (1 + (i/p))^p - 1 .................. (1)
Where;
i = interest rate = 5%, 0.0500
p = number compounding in year = 4
Substituting the values into equation (1), we have:
r = (1 + (0.05/4))^4 - 1 = 0.0509453369140624
Using the effective interest rate above, the present value of this annuity is $154.79.
Answer:
B. the reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is inefficency in the market that occurs when demand and supply aren't in equilibrium. As a result of this inefficiency consumer and producer surplus falls.
Answer:
$168,400
Explanation:
Benders Gym repurchased their common stock at the rate of $140,000
Benders Gym pays a regular dividend of $18,500 four times in a year
For a period of one year 1,200 shares was issued at the rate of $38 per share
Therefore, the amount of cash flow to the stockholders for the past one year can be calculated as follows
=[18,500×4]-[1,200×38-(140,000)]
= 74,000-[45,600-140,000]
= 74,000-[-94,000]
= 74,000+94,000
= $168,400
Hence the amount of cash flow to the stock holders for a period of one year is $168,400
You get tax returns and sometimes the taxes go down
Answer:
Part 1.
3.1 times
Part 2.
a. total assets
Part 3
d. the company's ability to generate sufficient cash to repay debt when due.
Explanation:
<u>For Part 1</u>
Inventory turnover measures the activity of liquidity of a company`s inventory. The higher the ratio in comparison, the more efficient the inventory is managed.
<em>Inventory turnover = Cost of Sales ÷ Inventory</em>
therefore,
Inventory turnover = $982,500 ÷ $ 312,500 = 3.1 times
<u>For Part 2</u>
In a common-size Balance Sheet, each item is expressed as a percentage of total assets whereas in a common size Income Statement, Sales revenue is expressed as 100 % and every other item is expressed as a percentage of sales revenue.
<u>For Part 3</u>
Solvency or Liquidity is the ability of short term assets to cover short term liabilities. Also put, it is the company's ability to generate sufficient cash to repay debt when due.
