Answer:
Form W-2, also known as the Wage and Tax Statement, is the document an employer is required to send to each employee and the Internal Revenue Service (IRS) at the end of the year. A W-2 reports the employee's annual wages and the amount of taxes withheld from their paychecks. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government.
Explanation:
Answer:
a) Find the attached jpeg file for the cash flow diagram
b) The company should purchase Device B.
Explanation:
a) Draw cash flow diagram for each option
A project cash flow diagram is a tool that is used to present a visual representation of the cost of a project and cash it is expected to generate over a specified period of time. On the diagram, x-axis represents the year, and y-axis represents cash out flows and/or inflows.
Note: See the attached jpeg for the cash flow diagram.
b) If interest rate is 7%, which device should your company purchase?
To determine this, we compare the Net Present Value (NPV) of the 2 devices.
Note: See the attached excel file for the calculation of the NPVs of the two devices.
From the attached excel file, we have:
NPV of Device A = $230
NPV of Device B = $262
Decision: Since $262 NPV of Device B is greater than the $230 NPV of Device A, <u>the company should purchase Device B.</u>
Answer:
Debt to Equity ratio = 2
Explanation:
The debt to equity ratio is a financial ratio to measure the proportion of debt financing in a company's capital structure in relation to the shareholders' equity. The debt to equity ratio can be calculated as follows,
Debt to Equity ratio = Total Liabilities / Total Equity
To calculate the value of total equity, we will use the basic accounting equation which is,
Total assets = Total Liabilities + Total Equity
60000 = 40000 + Total Equity
Total Equity = 60000 - 40000 = $20000
Debt to Equity ratio = 40000 / 20000
Debt to Equity ratio = 2
Answer:
texas register
Explanation:
The Texas Register, distributed regularly, reports state agency policy creating and enforcement acts, assignments of governors, secretary of state decisions, legislation requests, and other sundry records.
Formed via a collaboration with the Secretary of State's Department of Texas, Texas Register Page, this collection offers free exposure for all Texas Register problems from Title 1, No. 1 (January 6, 1976). Towards the moment.The Texas Register's latest specific problem is first listed on a Texas Register Website, whereby they keep access to that of the Texas Register's very recent six (6) months problems.
Answer:
Stock's current market value = $44.87
Explanation:
We can solve this stock valuation problem using DDM (Dividend Discount Model).
Lets find the dividends for the years:
D0 = $1.32
D1 = $1.32*1.3 = $1.716
D2 = $1.716*1.1 = $1.888
D3 = $1.888*1.05 = $1.982
The formula of stock valuation:

Lets calculate the terminal value after Year 3 afterwards:

<u>Note:</u> rate of return, k_e = 0.09 (given) and growth rate (g) is 5% or 0.05
Now,
The present value of the stocks is gotten using formula:

So, we have:

Stock's current market value = $44.87