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scoundrel [369]
3 years ago
7

April Stigum will receive a 6 year annuity of $2,000 per year, beginning 7 years from today. In other words, the first payment w

ill be made at the end of year 7. Assuming a required rate of return of 10%, calculate the present value today of her annuity. (Enter a positive value and round to 2 decimals
Business
1 answer:
melomori [17]3 years ago
8 0

Answer:

The present value today of her annuity=$4,469.87

Explanation:

Step 1 find An

An=R[1-(1+i)^-n] : i

An=(2000[1-(1+0.10)^-6]) :0.10

An=$8,710.52

Step 2 find Present value today

An=S

P=S(1+i)^-n

P=8,710.52(1+0.10)^-7

P=$4,469.87

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is d

Explanation:

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The most efficient way to share digital files within a home environment is to set up a(n ____ network.
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Issy's Ice Cream is an international business. As such, it a. invests in international trade or investment. b. needs to have man
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Answer: The correct answers are "a. invests in international trade or investment." and d. needs to manufacture products or provide services that target a global market.".

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3 years ago
Murphy's, Inc., has 85,000 shares of stock outstanding with a par value of $1 per share. The market value is $12 per share. The
nexus9112 [7]

Answer:

The correct answer is $177,955.

Explanation:

According to the scenario, the computation of the given data are as follows:

Capital in excess of par account = $74,500

Common stock = $85,000

Retained earning = $141,500

So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:

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8 0
3 years ago
All else constant, the weighted average cost of capital for a risky, levered firm will decrease if:__________
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<h3>How much does preferred stock cost?</h3>

The Weighted Average Cost of Capital is also computed using the price of preferred shares. The Weighted Average Cost of Capital (WACC) of a company is a measure of its blended cost of capital, which includes equity and debt.

<h3>The weighted average cost of capital is influenced by what outside variables?</h3>

Corporate tax rates, the state of the economy, and market circumstances are some other outside variables that might impact WACC. The average after-tax cost of a company's multiple capital sources is known as the weighted average cost of capital (WACC). It consists of bonds, other debt, common stock, and preferred stock.

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1 year ago
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