Answer:
PV= $30,111.98
Explanation:
Giving the following information:
Future value= $60,000
Number of periods= 8
Interest rate= 9%
<u>To calculate the initial investment, we need to use the following formula:</u>
FV= PV*(1+i)^n
<u>Isolating PV:</u>
PV= FV/(1+i)^n
PV= 60,000 / 1.09^8
PV= 30,111.98
Nikki as the option to choose the less expensive liability-only insurance coverage.<span>
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Answer:
There are usually 3 parties to a check transaction
The Drawer, the Drawee and the Payee.
The Drawee in this instance is Southern Rock Bank
Explanation:
The Bank warehousing the funds/Money is the one a check is drawn against, hence the term 'drawee"
The Account owner or representative who writes a check giving authority to the Bank to release of the Funds in its possession is the "Drawer
And the Beneficiary of the drawn up check becomes the Payee.
Answer:
Answer explained below
Explanation:
GIVEN:
options issued = 1000
exercise per share = $6
market price = $20
net income = $50000
a) Diluted earnings per share
= (Total income - preference dividends) /( outstanding shares + diluted shares)
Amount paid towards shares = Options issued * Exercise price per share = 1,000 * 6 = $ 6,000
Value of options = Amount paid towards shares / Current market price = $ 6,000 /$ 20 = 300
Diluted shares = Options issued - value of options = 1000 - 300 = 700
So Diluted Earnings per share = ( 50,000) / ( 10,000 +700) = $ 4.67 per share.
b) Calculation of diluted shares 700 (same as above )
Weighted average for the period holding i.e, 3 months = 700 *3/12 = 175 shares increased during the period.
Diluted EPS = 50,000 /(10,000 +175) = $ 4.91 per share