Answer:
3.5 years
Explanation:
The computation of the payback period is given below:
Given that
In year 0 = $32,000
In year 0 = $12,000
In year 1 = $8,000
In year 2 = $8,000
In year 3 = $20,000
In year 4 = $16,000
In year 5 = $16,000
Based on the above information
Now If we add the first 3 year cash inflows then it is $36,000
After this, we deduct the $36,000 from the $44,000 ($32,000 + $12,000) so the remaining amount would be $8,000 now if we added the fourth year cash inflow the total amount would be more than the initial investment.
Therefore, we deduct it
Now, the next year cash inflow is $16,000
Thus, the payback period is
= 3 years + $8,000 ÷ $16,000
= 3.5 yeas
Answer:
The required rate of return for the company is 13.8%
Explanation:
<u>Dividend yield: </u> return of the stock considering his market value:
dividend / Price = dividends yield = 7.7% = 0.078
<u>grow</u> = 6% = 0.06
<u>We use the gordon model to solve for required return:</u>
<em>return</em> = 0.138 = 13.8%
Answer:
$0.51 million
Explanation:
Earnings per share is calculated as ;
Net income - preferred dividends/ Weighted average common shares outstanding.
Given that;
Net income = $153 m
Preferred dividends = 0$
Weighted average common shares outstanding = $300 m
Therefore,
Earnings per share = $153 - $0 / $300
= $0.51 million
Answer:
$1,000.69
Explanation:
For computing the monthly car payment we need to apply the PMT formula i.e to be shown in the attachment below
Provided that
Present value = $38,000
Future value or Face value = $0
NPER = 48 months
RATE = 1%
The formula is shown below:
= PMT(RATE;NPER;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the monthly car payment is $1,000.69
You must pay two types of taxes on earned income: Social Security/Medicare taxes (called FICA, OASDI, or payroll taxes) and income taxes. The payroll taxes that are withheld from your paycheck have two components.
