Answer:
the value of the cash flow in year 5 is -$48
Explanation:
Cash flow in year 5 include a capital repayment and interest expense.This can be determined by constructing an amortization schedule from the data given.
The first step in constructing the amortization schedule is to find the Yield to Maturity.
Pv = -$600
Pmt = $600 × 8% = $48
P/yr = 1
N = 10
Fv = $600
YTM = ?
Using a Financial Calculator the Yield to Maturity is 8%.
then to determine the cash flow for year 5, we need the coupon amount (interest) and the amount of capital repayment.
Coupon $48
Capital $0
Total $48
Therefore the cash flow in year 5 is -$48.
Answer:
d. handle Preincorporation transactions.
Explanation:
Promoters are those who undertake in the setting up of a company. They also does the Preincorporation work before the company is set up like floatation, incorporation, promotion and seek people's help to invest money in the formation of the company.
Stages involved in the formation of a company are
-Promotion,incorporation,capital set up and final commencement of business. The work of a promoter here is the promotion promotion of the company to be set up.
Promoters perform some other functions like identifying business ideals, investigation of business to be formed, ensure name approval and preparing documents necessary for the formation of the company.
Some of the liabilities of promoters are as follows;
- Exercise due diligence and care while performing as a promoter
-Responsible for handling Previous corporation contracts
-Secret profit should not be made by a promoter prior to the setting up of the company
Answer:
B. The cost of printing and distributing its annual report.
Explanation:
The FASB (Financial Accounting Standards Board) is a private, non-profit organization in the United States whose primary purpose is to establish and improve generally accepted accounting principles in the public's interest.
Under FASB, a mission Save Our Butterflies Foundation has been implemented to educate people regarding the conservation of butterflies. The cost of printing and distributing its annual report would be reported as a support expense by the Foundation.
Answer: Becky's income elasticity of demand for eating at Macaroni grill is 10.22.
We calculate income elasticity of demand with the following formula:
where
η is the Greek letter eta that is used to denote elasticity of demand
Subscript I is used to denote Income elasticity
Q₁ is the quantity consumed after change in income
Q₀ is the quantity consumed before in income
I₁ is the new income
I₀ is the old income
Substituting the values we get,
