Answer:
PV= $10,030.27
Explanation:
Giving the following information:
Cash flow= $2,500
Lump sum= $4,000
i= 9%
n= 5
<u>First, we need to calculate the future value of the cash flows:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,500*[(1.09^4) - 1]} / 0.09
FV= 11,432.82
<u>Now, the total future value:</u>
FV= 11,432.82 + 4,000= 15,432.82
<u>Finally, the present value:</u>
PV= FV/(1+i)^n
PV= 15,432.82/1.09^5
PV= $10,030.27
Answer:
so cost of capital = 9.9 %
correct option is a 9.9%
Explanation:
given data
capital structure = 40%
common equity = 60%
tax rate = 34%
pretax cost = 8.5%
pretax cost = 10%
market price = $59
Flotation costs = $3 per share
common stock dividend = $3.15
Dividends expected to grow = 7%
to find out
cost of capital if the firm uses bank loans and retained earnings
solution
cost of retained earning =
+ growth rate ........................1
cost of retained earning =
+ 0.07
cost of retained earning =0.1271271186
and
cost of capital will be
cost of capital = weight for debit × ( cost of debit × ( 1 - tax rate ) ) + weight for common stock × cost of common stock
cost of capital = 0.40 × ( 8.5% × ( 1 - 0.34 ) ) + 0.60 × 0.1271271186
cost of capital = 0.0987
so cost of capital = 9.9 %
correct option is a 9.9%
Answer:
$849.01
Explanation:
For this question, we use the Present value formula that is shown on the attachment. Kindly find it below:
Data provided in the question
Future value = $1,000
Rate of interest = 9%
NPER = 7 years
PMT = $1,000 × 6% = $60
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $849.01
Answer:
The correct answer is "a" = 29
Explanation:
The workings are attached:
Answer:
foot-in-the-door
Explanation:
Foot-in-the-door can be described as a method that people use to get another person to agree to their big request by first having them agree to a smaller one. The way this tactic works is the person making the request would first try to have a connection with the one that is to grant the request.
We can see Erin employ this tactic here. First she wants to ask for a smaller donation of 50 dollars, and when she gets her 50 dollar request, her next move would be to ask for a bigger donation. This technique is is used a lot to get people to be compliant with requests.
tahnk you !