Answer:
A
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
Security A : 11 = 1( 1 + r)^15
11^(1/15) = 1( 1 + r)
1.173 = 1 + r
r = 1.173 - 1
r = 17.33%
Security A : 16 = 1( 1 + r)^15
16^(1/15) = 1( 1 + r)
1.20 = 1 + r
r = 1.2 - 1
r = 0.2
r = 20%
Security B earned a higher average annual rate of return as 20% is greater than 17.33%
Answer:
Take out a small business loan.
Explanation:
A small loan is a way, based on your credit, to establish a way to raise money.
Bram buys a bulldozer from construction equipment corporation, which he leases to earth movers, inc. in this situation, the lessee is Earth Movers, Inc. <span>A </span>lessee is the person who rents land or property from a lessor. A lessor on the other hand is <span>A </span><span>lessor </span><span>is </span>the party who rents property to another party<span>. Bram is the lessor in this situation.</span>
Answer:
a. $1,765,000
Explanation:
Total stockholder’s equity on December 31, 2013 = Total equity at end 2012 – amount paid for 3,000 shares were reacquired at $28 per share – amount paid for 3,000 shares were reacquired at $35 per share + amount collect from 1,800 shares of treasury stock were sold at $30 per share + net income of $450,000
= $1,450,000 – 3,000 * $28 – 3,000 * $35 + 1,8000 *$30 + $450,000 = $1,765,000
