What will increase the current value of a stock?

On February 1, 2020, Nash's Contractors agreed to construct a building at a contract price of $5,700,000. Nash's estimated total

Romashka-Z-Leto [24]

Answer:

Nash's Contractor

Gross profit that should be recorded for 2020, 2021, and 2022:

Percentage -of completion Completed-contract

2020 $___667,500_____ 2020 $___0_____

2021 $____361,395____ 2021 $____0____

2022 $____121,105____ 2022 $____1,150,000____

Explanation:

a) Data and Calculations:

Contract price = $5,700,000

Estimated construction costs = $3,920,000

Project completion date = 2022

Costs and Billings:

2020 2021 2022

Total costs incurred to date $1,470,000 $2,580,000 $4,550,000

Estimated costs to complete 2,450,000 1,720,000 -0-

Customer billings to date 2,100,000 3,920,000 5,500,000

Collections to date 1,900,000 3,400,000 5,400,000

Percentage of completion:

2020:

Revenue = $2,137,500 ($1,470,000/$3,920,000 * $5,700,000)

Cost incurred = 1,470,000

Gross profit = $667,500

2021:

Revenue = $1,471,395 ($1,110,000/$4,300,000 * $5,700,000)

Cost incurred = 1,110,000

Gross profit = $361,395

2022:

Revenue = $2,091,105 ($5,700,000 - $2,137,500 - $1,471,395)

Cost incurred 1,970,000

Gross profit = $121,105

Completed contract

2022: Revenue = $5,700,000

Total costs = 4,550,000

Gross profit = $1,150,000

7 0

3 years ago

Select all that apply.

Readme [11.4K]

All of them but computers

3 0

3 years ago

5. Describe an ethical dilemma related to pricing or advertising. (1 point)

Anastaziya [24]

Overpricing is a real issue

4 0

3 years ago

MONEY Deanna and Lise are playing games at the arcade. Deanna started with $15, and the machine she is playing costs $0.75 per g

goblinko [34]

Answer:

The answer is: after 8 games

Explanation:

You can solve this problem in two ways:

Deanna Lise

Start with $15 $13

After 1 game $14.25 $12.50

After 2 games $13.50 $12.00

After 3 games $12.75 $11.50

After 4 games $12.00 $11.00

After 5 games $11.25 $10.50

After 6 games $10.50 $10.00

After 7 games $9.75 $9.50

After 8 games $9.00 $9.00

Or you can solve this equation:

= (price of arcade D - price of arcade L) / (Deanna's money - Lise's money)

= ($0.75 - $0.50) / ($15 - $13) = $0.25 / $2 = 8

7 0

3 years ago

Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu

OverLord2011 [107]

Answer:

current yield 8.2089552%

YTM = 8.05%

effective annual yield = 4.92%

Explanation:

(A)

current yield = C/P

coupon payment / market price

8.8/107.2 = 0.082089552 = 8.2089552%

(B)

$P = \frac{C}{2} \times\frac{1-(1+YTM/2)^{-2t} }{YTM/2} + \frac{CP}{(1+YTM/2)^{2t}}$

First par being the present value of the coupon payment and second the redeem of the face value at the end of the bond.

market price 107.2

face value 100

time = 19

rate 8.8%

C = annual coupon payment 100 x 8.8% = 8.8

You solve this using a financial calculation and get the semiannual rate

YTM/2 = 0.040268160

then multiply by 2 to get the annual YTM

0.040268160 x 2 =

YTM = 0.08053632 = 8.05%

(C)

Effective Annual Yield

$(1+HPR)^{365/time} -1 = EAY$

where:

Holding period return:

$\frac{Net \: Return}{Investment} = HPR$

In this case:

coupon payment + redem - investment = net return

8.8 * 19 + 100 - 107.2 = 160

160/107.2 = 1.492537313

Then

$(1+HPR)^{365/time} -1 = EAY$

$(1+1.142537313)^{\frac{365}{19\times365}} -1 = EAY$

EAY = 0.049242509 = 4.9242509%

8 0

3 years ago