Answer:
$74.61 per share , decrease.
Explanation:
First calculate value of preferred share if return is 13.94% ;
Value of preferred share =(Annual dividend rate * Par value)/ Rate of return
Value = (0.1040* 100)/0.1394
Value = 10.40/ 0.1394
Value = $74.61
Next, calculate value of preferred share if return is 18.12% ;
Value of preferred share =(Annual dividend rate * Par value)/ Rate of return
Value = (0.1040* 100)/0.1812
Value = 10.40/ 0.1812
Value = $57.40
Since the value has gone from $74.61 to $57.40, it means that the value will DECREASE.
Answer:
The correct answer is: $5,140.80.
Explanation:
Simple Interest is a quick method of calculating the interest charged on a loan or the interest accrued out of an investment. It is determined by multiplying the interest rate by the principal by the number of periods. It is one of the most common methods used in finance to calculate the return on certain investments.
In the example, the number of years considered to calculate the interest is 17 because the 18th year on interest is realized by the end of that year. Thus:
- Deposit per year: $140
- Interest per year: $140 x 12% = $16.80
- Interest accrued: $16,8 x 17 = $285.60
- Total savings: (Deposit per year x number of years) + interest accrued
- Total savings: ($140 x 18) + $285.60
- Total savings: $5,140.80
The GDP means gross domestic product. When it increases then it means the economy is getting stronger or is already strong. If it decreases then it becomes weaker or is already weak.
Answer:
794 composite units.
Explanation:
Calculation to determine the firm's break-even point in composite units
First step
Contribution Margin per Composite Unit:
Youth model $700
($140× sales mix of 5 )
Adult model model $4,365
($485× sales mix of 9)
Recreational model $3,210
( $535 × sales mix of 6 )
Contribution Margin per Composite Unit=8,275
($700+$4,365+$3,210)
Now let determine the Break-even Sales in Composite Units using this formula
Break-even Sales in Composite Units = Total Fixed Costs/Contribution Margin per Composite Unit
Let plug in the formula
Break-even Sales in Composite Units = $6,570,000/$8,275
Break-even Sales in Composite Units = $793.9
Break-even Sales in Composite Units = 794 composite units
Therefore the firm's break-even point in composite units is 794 composite units.
Answer:
$1,000
Explanation:
the journal entry to record the purchase of the goods should be:
January 27, merchandise purchased on account, credit terms 2/10, n/30
Dr Merchandise inventory 1,000
Cr Accounts payable 1,000
the journal entry to record the payment of the invoice 13 days later should be:
Dr Accounts payable 1,000
Cr Cash 1,000
since the discount period is over, the invoice should be paid at full amount