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Lina20 [59]
3 years ago
3

You own 50 shares in a major corporation stock valued at $128 per share. This stock gained 12% in value last year. Assuming the

stock will continue to grow at the same rate over the next 5 years, calculate the value of the stock per share in the 5th year.
Business
1 answer:
motikmotik3 years ago
0 0

Answer:

  • <u><em>$225.58</em></u>

<u><em></em></u>

Explanation:

The growth of this <em>stock</em> is an example of annual compounded interest: the value will increase at the same rate over the next 5 years, thus every year its value will be multiplied by 1 + 0.12 = 1.12.

Thus, at the end of the year 5, the share will have multiplied its value (1.12)⁵ times:

         Value=\$128\times 1.12^5\approx\$128\times 1.76234=\$225.58

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An acre lot was purchased for $100,000. A $500,000 office building was erected. The building is placed in service in May. Find t
kolezko [41]

Answer: $8025

Explanation:

From the information given, first and foremost, we need to realise that only the building in this case will be depreciated due to the fact that land is considered to be a non depreciable asset.

Therefore, the MACRS depreciation charge for year 1 will then be:

= MACRS rate × Value of Building

= 1.605% × $500,000

= 0.01605 × $500,000

= $8025

5 0
3 years ago
When a provider signs a contract to be a participating provider with an insurance payer they are agreeing to:
Lesechka [4]

Answer:

Accept the fee schedules set by the insurance company.

Explanation:

A participating provider is defines as one who has entered into a written agreement with an insurance company to provide a given range of Medicare Part B services on an assigned basis.

Usually various fees are scheduled for each of the services provided.

The discount on services in this instance is not much and they are always obligated to provide service.

On the other hand preferred provider is one who provides services at a discount.

6 0
2 years ago
Suppose the price of gasoline decreases from $4.20 to $2.00, and in response quantity demanded increases from 10600 to 11200. Us
Tems11 [23]

Answer:

0.079

Explanation:

Price elasticity of demand using midpoint formula can be calculated as follows

Formula

Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)

Calculation

Elasticity of demand = (600/10,900)/(-2.1/3.05)

Elasticity of demand =-0.055 / -0.688

Elasticity of demand =-0.079

working

Change in price (2-4.1) = -2.1  

Average price (2+4.1)/2=3.05

Change in quantity (11,200-10600) = 600

average quantity (11,200+10,600)/2 = 10,900

 

The elasticity of demand is inelastic as the elasticity is below 1.

4 0
3 years ago
Best Foods Co. is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One criteri
WITCHER [35]

Answer:

Option  E                    

Explanation:

In simple words, the given case illustrates the cost analysis method for choosing target market segments. Under such criterion of selection, the subject company identifies various costs that it must bear in order to operate in some potential segment and after identifying those cost, such company evaluates if there will be any profit left for them in the market.

This method is complex, time consuming and needs experts advise but still is most popular nowadays as it gives most accurate results by identifying various quantitative and qualitative factors.  

3 0
3 years ago
Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company poli
densk [106]

Answer:

Merchandise purchases budget explanations only.

Explanation:

Hi, your question has missing information, however i have supplied explanations below.

A purchases budget is required to determine the quantities of purchases required for :

  1. Resale - For Merchandisers
  2. Use in Production in case of Manufacturer

Here is the structure of the merchandise purchases budget for Walker Company (Merchandiser).

<u>Merchandise purchases budget </u>

                                                                       Month

Budgeted Sales                                                  x

Add Budgeted Inventory                                   x

Total Purchases needed                                    x

Less Budgeted Opening Inventory                  (x)

Budgeted Purchases                                          x

As stated by the question : <em>Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month.</em>

<em>Ending Inventory = Next months` sales x required percentage</em>

Ending Inventory for one month say July becomes Opening Inventory for the following month (August) for our merchandise purchases budget.

5 0
3 years ago
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