Answer:
the future value is $328,983.26
Explanation:
The computation of the amount that would be retired in 45 years is shown below:
As we know that
Future value = Present value × (1 + interest rate)^time period
= $5,000 × (1 + 9.75%)^45
= $328,983.26
Hence, the future value is $328,983.26
Answer:
a. 12.60%
Explanation:
The Eco Brothers Inc. cost of common can be determined through the following mentioned formula:
cost of common=Cost of debt+risk premium over cost of debt
In the given question
Cost of debt=8.75%
Risk premium over cost of debt=3.85%
Cost of common=8.75%+3.85%
=12.6%
So based on the above calculations, the answer is a. 12.60%
Answer:
A. Expenditures for 2020 will include the $40,000 purchase orders.
Explanation:
The only accounting technique or principle that is accepted by GAAP which is generally known as the generally accepted accounting principles, is the accrual basis accounting technique. This technique pertains to the matching principle by recording the income whenever it is earned and expenses as they happen.
The four fundamental constraints that are associated with GAAP include materiality, objectivity, consistency and prudence.
Answer:
Explanation:
NASSA rules are set of laws enacted to guide the administration of business and trading activities. Some of the NASAA are protection of vulnerable adults from financial exploitation and guides against unethical practices by investment advisers.
NASSA rules does not forbid RIA from charging an incentive fee based on investment performance, however , it must be able to prove that the fee charged is fair , reasonable and affordable by the customer , in as much as the customer is not being financially exploited.
Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
