Answer:
$193,000
Explanation:
Carter Company
Sales 4,525,000
Cost of goods sold <u>-2,550,000</u>
1,975,000
Operating expenses <u>-1,372,000</u>
Net Income 603,000
Average invested assets 4,100,000
Target income 10% 410,000 <u>410,000</u>
Residual income <u>$193,000</u>
Answer:
It will take 51 months.
Explanation:
As we know the constant payment of $290 monthly is the annuity payment to pay $12,000 with interest rate of 0.84% per month. The Number of Months can be calculated by following formula.
Loan amount = PV = $12,000
Rate of interest = r = 0.84 %
Monthly Payment = P = $290
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
$12,000 = $290 x [ ( 1 - ( 1 + 0.84% )^-n / 0.84% ]
$12000 x 0.84% / $290 = 1 - ( 1 + 0.84% )^-n
0.347586 = 1 - ( 1 + 0.84% )^-n
0.347586 - 1 = - ( 1 + 0.84% )^-n
-0.652414 = - ( 1 + 0.84% )^-n
1 / 0.652414 = 1.0084^n
1.532769 = 1.0084^n
Log 1.532769 = n x log 1.0084
n = Log 1.532769 / log 1.0084
n = 51
Answer:
reduces; geographic diversification
Explanation:
In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.
Starting a business out of necessity reffers to making a decision based on specific criteria that has an affect on a certain number of people. In this situation, a person is making the decision they feel is best based on information collected and parts of an oganization that needs to be changed. It's imparative to do your research and decided what and why things need to change and the best way to acheive success in doing so.
Answer:
Required rate of return is 6.97%
Explanation:
The required rate of return can be ascertained from the price formula below when the subject of the formula is changed to rate of return instead of stock price:
Stock price =dividend/required rate of return
stock price is $80.40
required rate of return is unknown
the dividend on the preferred stock is $5.60
required rate of return=dividend/stock price
required rate of return =$5.60/$80.40=6.97%
The required rate of return based on the stock price and dividend information provided is 6.97%
