Answer:
r = 9.86%
Explanation:
The formula for calculating the future value of an invested amount yielding a compound interest is given by:

where:
FV = future value = $16,000
PV = present value = $10,000
r = interest rate = ?
n = number of compounding period per year = 1
t = time in years = 5
∴ 
dividing both sides by 10,000


to remove the power of 5, we have to take the 5th root of both sides:

Using your calculator:
1.09856 = 1 + r
∴ r = 1.09856 - 1 = 0.09856
r = 0.0986 = 9.86%
∴ r = 9.86%
Answer:
Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Explanation:
Old Net profit margin = Net income/ Revenue
= $10,600/$205,000
= 5.170731707%
Old ROE = Net profit margin*Asset turnover*Equity multiplier
= 0.0517*1.33*1.75
= 12.03487805%
New net income = $10,600 + $10,250
= $20,850
New net profit margin = $20,850/$205,000
= 10.17073171%
New ROE = 0.1017*1.33*1.75
= 23.67237805%
Change in ROE = New ROE – Old ROE
= 23.67237805% - 12.03487805%
= 11.6375%
Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.
Answer:
the present value of the bond is $16.67
Explanation:
given data
time NPER = 12 year = 12 × 2 = 24 semi annual
bond value FV = $1000
interest PMT = $50
rate of interest = 6% =
= 0.03 = 3 % semi annual
solution
we will apply here formula for current value in excel as given below
-PV(Rate;NPER;PMT;FV;type) .............1
put here value as
rate = 3% and NPER = 24 , and FV = 1000 and PMT = $50
solve it we get
the present value of the bond is $16.67
Answer:
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Explanation:
Movement of Cash during the year :
Net cash flow from operating activities -$89 million
Net cash flow from investing activities $42 million
Net cash flow from financing activities $28 million
Movement during the year -$19 million
Conclusion,
The net cash movement is -$19 million, this means that the firm is facing liquidity challenges.
Answer:
Wayman Corporation
Multiple-step income statement
Sales $425,000
Less: Cost of goods sold <u>$135,000</u>
Gross Profit $290,000
Operating Expenses
Salary Expenses $45,000
Utility Expenses $55,000
Advertising Expenses <u>$35,000</u>
Total Operating Expenses <u>($135,000)</u>
Net Operating Income $155,000
Other Income and Expenses
Interest expense <u>$25,000</u>
Net Income before Tax $130,000
Income tax expense <u>$55,000
</u>
Net Income <u>$75,000</u>