Answer:
podrias desir cual fue el contenido de la semana?
Explanation:
Answer:
The correct option is a. $19,073.
Explanation:
Since the company must repay the bank a single payment of $25,000, the present value can be calculated as follows:
PV = FV / present value of 1 (single sum) at 7% for 4 years ..................... (1)
Where;
PV = Present value of the loan = ?
FV = Future value of the loan = $25,000
Present value of 1 (single sum) at 7% for 4 years = 0.7629
Substituting the values into equation (1), we have:
PV = $25,000 / 0.7629
PV = $19,073
Therefore, present value of the loan (rounded) is $19,073. Therefore, the correct option is a. $19,073.
Answer:
The new price will be $11.89 if the market risk premium falls to 8% changing the required rate of return to 15.6%.
Explanation:
We will calculate the price of the share today using the constant growth model of DDM as the stock's dividends are growing at a constant rate forever. The formula for constant growth model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is the dividend expected for the next period or D1
- r is the required rate of return
- g is the growth rate in dividends
We need to find the new required rate of return. The required rate is unknown and can be calculated using the CAPM. The required rate under CAPM is,
r = rRF + Beta * rpM
r = 0.06 + 1.2 * 0.08 = 0.156 or 15.6%
Plugging in the available values for new r, g and D0 to calculate price today,
P0 = 1.2 * (1 + 0.05) / (0.156 - 0.05)
P0 = $11.886 rounded off to $11.89
Answer:
The amount of prepaid subscription in Santa,Fe's account is $1701
Explanation:
By the end of the year, that is 31st December of the first year,Griffith would have delivered 9 months magazines to Santa Fe,Inc, which implies that the number of months whose magazines have not been made available is 27 months (36 months minus 9 months).
In addition, the amount of prepaid subscription at the end of the year is calculated below:
Subscription prepaid balance =27/36*$2,268
=$1701
This means that the magazine expense for the current year is $567($2268 minus $1701)