Answer:
$6000
Explanation:
Break up of the economic cost of owning and operating the car for the year is mentioned below:
Car Bought - 10,000
Add: Insurance, license and operating cost - 1,500
Add: Interest (10,000 * 10%) - 1,000
Less: Car resold - (6,500)
Total - 6,000
Therefore, economic cost of owning and operating the car for the year was $6,000.
Answer:
$61.29
Explanation:
Calculation for what Storico Co. Share of stock will sell today.
Since we have a stock that has a normal growth in which the dividend growth changes every year for the first four years. We can therefore find the price of the stock in Year 3 because the dividend growth rate is constant after the third dividend, which means the price of the stock in Year 3 will be the dividend we are going to use in Year 4, we shall then divide it by the required return less the constant dividend growth rate.
Therefore the price in Year 3 will be calculated as :
P3= $3.15(1.20)(1.15)(1.10)(1.05) / (.12 – .05)
P3= $5.020785/0.07
P3=$71.72
Let find the price of stock today using the PV of the first three dividends in addition with the PV of the stock price in Year 3:
Hence,
P0= $3.15(1.20)/(1.12) + $3.15(1.20)(1.15)/1.12^²+ $3.15(1.20)(1.15)(1.10)/1.12^³+ $71.72/1.12^³
P0=$3.78/1.12+$4.347/1.2544+$4.7817/1.404928+$71.72/1.404928
P0=$3.375+3.465+3.4035+$51.048
P0= $61.29
Therefore if the required return on the company’s stock is 12% what the share of stock will sell for today will be $61.29
Answer:
A) the range of variation
Explanation:
In statistics, the range is a measure of variation which includes the highest value and the lowest value, in other words, the extreme points.
In this case, the range of variation represents the extreme points at which it is OK to plant our seeds. If we plant seeds more than 13" apart then we aren't doing it correctly, the same if we pant them less than 11" apart.
Idk this one but i can help you find it if u want
Answer:
(1) $9,973.15
(2) 10.7%
Explanation:
(1) A = P(1+r)^n
A (estimated cost of the wedding) is the total amount to be saved = $52,000
r = interest rate = 3.5% = 0.035
n = duration of savings = 4 years = 4×12 = 48 months
52000 = P(1+0.035)^48
52000 P(1.035)^48
52000 = P(5.214)
P = 52000/5.214 = 9,973.15
Amount to be saved each month is $9,973.15
(2) A = P(1+r)^n
A is the total amount the coin was resold = $297,500
P is the amount the coin was purchased = $219,000
n is the duration of the investment = 3 years
297,500 = 219,000(1+r)^3
(1+r)^3 = 297,500/219,000
(1+r)^3 = 1.358
1+r = (1.358)^1/3
1+r = 1.107
r = 1.107 - 1 = 0.107 = 10.7%
