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Evgen [1.6K]
3 years ago
8

You gave $770 to your cousin. As a token of gratitude, your cousin gave you $1,190 at the end of the year instead of $770. If yo

u look at this as an investment, then your annual rate of return would be_____________
Business
1 answer:
Kamila [148]3 years ago
7 0

Answer:

annual rate of return  = 54.55%

Explanation:

given data

gave to your cousin present value = $770

cousin give you future value = $1190

solution

we get here annual rate of return that is express as

annual rate of return = \frac{future\ value}{present\ value} - 1    ...................1

put here value and we get

annual rate of return = \frac{1190}{770} - 1

solve it we get

annual rate of return  = 54.55%

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On June 1, 2022, Crane Company was started with an initial investment in the company of $26,000 cash. Here are the assets, liabi
skelet666 [1.2K]

Answer and Explanation:

For preparing the retained earning statement first we have to determine the net income or net loss which is shown below:

= Service revenue - supplies expense - Maintenance and repairs expense - advertising expense - utilities expense - salaries and wages expense

= $7,800 - $1,100 - $690 - $400 - $210 - $1,500

= $3,900

Now the preparation of the retained earning statement is presented below:

                                        Crane Company

                           Retained Earnings Statement

                                 For the month of June

Beginning balance   $             -

Add: Net income $3,900

Less: Dividends      ($1,521)

Ending balance      $2,379

8 0
3 years ago
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
Aloiza [94]

The value of current stock price is equal to $57.93

<u>Explanation:</u>

Given dividend = $20 per year

The calculation of current stock price is as follows:

The Stock price at the beginning of 20th year is equal to = $20 divided by 8 percent = 250

Current stock price ( present value ) = \mathrm{FV} /(1+\mathrm{r})^{\wedge} \mathrm{n}

=\$ 250 /(1+0.08) \wedge 19

After calculating, we get, 57.92801

Therefore, the value of current stock price is equal to $57.93 (rounded off to 2 decimal places).

7 0
3 years ago
molen inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $4.00 per share. if the required ret
crimeas [40]

The price at which the stock should sell is $61.54.

Using this formula

Stock selling price=Preferred stock annual dividend/Preferred stock required return

Where:

Preferred stock annual dividend=$4.00 per share

Preferred stock required return=6.5% or  0.065

Let plug in the formula

Stock selling price=$4.00/0.065

Stock selling price=$61.538

Stock selling price=$61.54 (Approximately)

Inconclusion the price at which the stock should sell is $61.54.

Learn more here:

brainly.com/question/15561609

7 0
3 years ago
Nash's Trading Post, LLC had a balance in the Accounts Receivable account of $761000 at the beginning of the year and a balance
WARRIOR [948]

Answer:

4

Explanation:

receivable turnover = net credit sales / average inventory

avarage iventory = ($761000 + $841000)  / 2 = $801,000

$3,204,000 / $801,000 =  4

8 0
3 years ago
Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 15 m
stiv31 [10]

Answer:

$270m

Explanation:

We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows

Increase in equity =  No Options Granted x Exercise price at the date of grant

Increase in equity = 15million x $18  

Increase in equity = $270m

       

5 0
3 years ago
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