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solmaris [256]
4 years ago
7

What is the future value of $15,000 received today if it is invested at 7.5% compounded annually for five years

Business
1 answer:
Firlakuza [10]4 years ago
6 0

Answer:

the future value is $21,534.44

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years

where,  

Present value is $15,000

The Interest rate is 7.5%

And, the number of the year is 5 years

Now put these values to the above formula

So, the future value is  

= $15,000 × (1 + 0.075)^5

= $21,534.44

Hence, the future value is $21,534.44

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klemol [59]

Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C) are called marketing intermediaries.

<h3>What is the purpose of marketing intermediaries?</h3>

marketing intermediaries are those organizations that stand in the gap to

make sure the goods from the producer get to the consumers.

They usually appears as wholesaler and they Organizations that assist in moving goods and services from producers to businesses.

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5 0
2 years ago
Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboyga
Misha Larkins [42]

Answer:

Option C. Debit Cash and credit Stock Investments

Explanation:

The reason is that in the equity method of recording the dividends receipts, it is always deducted from the stock investment and the relevant share of reported net income of the associate is added to the stock investment.

So mathematically,

Stock Investment Under Equity Method = Opening Value for the year + Share of Net Income - Dividend received

Stock Investment Under Equity Method = $300,000 + $160,000 * 25% + $60,000 * 25% = $325,000

The above treatment shows that the recording of dividends include credit to stock investment and the cash receipt is always debited.

So the double entry would be:

Dr Cash $15,000

Cr Dividends $15,000

So the option C is correct.

3 0
4 years ago
The market value of​ Fords' equity, preferred​ stock, and debt are $ 7 ​billion, $ 2 ​billion, and $ 13 ​billion, respectively.
steposvetlana [31]

Answer:

WACC is 9%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )

As per given data

Market Values

Equity = $7 ​billion,

Preferred​ stock = $2 ​billion

Debt = $13 ​billion

Cost

Equity

Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.

Formula for CAPM

Cost of Equity = Risk free rate + beta ( market return - risk free rate )

Cost of Equity = Rf + β ( Mrp )

Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%

Preferred​ stock = $2 / $26 = 0.077 = 7.7%

Debt = 8%

Placing values in the formula

WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )

WACC = 5.03% + 3.31% + 0.7% = 9.04%

7 0
3 years ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

                          = 0.7953 x 100

                          = 79.53%

The rate of return of the acre of land is 79.5%.

7 0
3 years ago
People slip into _____ when the desire for harmony outweighs concerns over decision quality.
dimulka [17.4K]
This is called groupthink
8 0
3 years ago
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