What is the maximum amount you will have to pay out of pocket for a car accident before your insurance covers your costs

An investment of $1 each in two different securities led to a value of $11 (Security A) and $16 (Security B), respectively, afte

jonny [76]

Answer:

A

Explanation:

The formula for calculating future value:

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

Security A : 11 = 1( 1 + r)^15

11^(1/15) = 1( 1 + r)

1.173 = 1 + r

r = 1.173 - 1

r = 17.33%

Security A : 16 = 1( 1 + r)^15

16^(1/15) = 1( 1 + r)

1.20 = 1 + r

r = 1.2 - 1

r = 0.2

r = 20%

Security B earned a higher average annual rate of return as 20% is greater than 17.33%

3 0

3 years ago

(a) On March 2, Blossom Company sold $853,600 of merchandise to Kingbird Company on account, terms 3/10, n/30. The cost of the m

tester [92]

Answer:

The answers are:

A) to record sales

Dr Accounts Receivable 853,600

Cr Sales Revenue 853,600

to record inventory

Dr Cost of Goods Sold 540,300

Cr Merchandise Inventory 540,300

B) to record sales returns

Dr Sales Returns & Allowances 114,200

Cr Accounts Receivable 114,200

to record inventory

Dr Merchandise Inventory 68,200

Cr Cost of Goods Sold 68,200

C) to record payment

Cr Cash 717,218

Cr Sales Discounts 22,182

Dr Accounts Receivable 739,400

8 0

4 years ago

When deciding whether a business concept is

Ivanshal [37]

Answer:

no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no no

4 0

3 years ago

Pacific Packaging's ROE last year was only 3%; but its management has developed a new operating plan that calls for a debt-to-ca

Natalka [10]

Answer: 12.53%

Explanation:

EBIT = $780,000

Interest = $470,000

EBT = EBIT - Interest

= $780,000 - $470,000

= $310,000

Net Income = EBT - Tax

= $310,000 - (35% × $310,000)

= $310,000 - (0.35 × $310,000)

= $310,000 - $108,500

= $201,500

Total assets turnover ratio = 2.8

Total assets = $10,000,000/2.8

= 3,571,429

Debt ratio = 55% = 0.55

Debt/Total asset = 0.55

Debt/3,571,429 = 0.55

Debt = 0.55 × 3571429

= 1,964,286.4

Equity = 0.45 × 3571429

= $1607143.5

Return on equity = Net income/Equity

= $201,500/$1,607,143.5

= 0.1253

= 12.53%

The company's return on equity will be 12.53%.

6 0

3 years ago

If you expect the target firm to grow at your calculated annual growth rate for the next four years (2021- 2024) and then beyond

frez [133]

Answer:

The question is incomplete, so I looked for a similar one:

FCF 2018 = ($4,923,478 - $1,033,930 + $605,752) - ($2,173,000 + $605,752) - ($8,501,348 - $7,600,543) = $4,495,300 - $2,778,752 - $900,805 = $815,743

FCF 2019 = ($5,960,124 - $1,251,626 + $1,239,239) - ($2,580,000 + $1,239,239) - ($7,210,800 - $5,905,791) = $5,947,737 - $3,819,239 - $1,305,009 = $823,849

FCF 2020 = ($5,998,321 - $1,259,647 + $239,895) - ($1,903,500 + $239,895) - ($5,975,324 - $4,116,364) = $4,978,569 - $2,143,395 - $1,858,960= $976,214

average annual growth rate 2018 - 2020 = {[(823,849 - 815,743)/815,743] + [(976,214 - 823,849)/823,849]} / 2 = (0.99% + 18.49%) / 2 = 9.74%

FCF 2021 = $976,214 x 1.0974 = $1,071,297

FCF 2022 = $1,071,297 x 1.0974 = $1,175,642

FCF 2023 = $1,175,642 x 1.02 = $1,199,154

first we must calculate the terminal value in 2022 = $1,199,154 / (10.5% - 2%) = $14,107,699

the firm's current value = $1,071,297/1.105 + $1,175,642/1.105² + $14,107,699/1.105² = $13,486,312

7 0

3 years ago