Answer:
Ans. Your monthly payments will be $1,602.37 ; The effective annual rate is 5.33%
Explanation:
Hi, first, we need to convert this APR rate into an effective monthly rate, that is, dividing 0.052/12 =0.00433 (or 0.4333%). Then we need to use the following equation and solve for A.
Where:
PresentValue= 84,500
A = periodic payments (the monthly payments that you need to make)
r = 0.004333333
n=60 months
So, let´s solve for A.
Now, in order to find the effective annual rate, we need to use the following equation.
Notice that to find an effective rate you have to start with another effective rate, otherwise it won´t work. So everything should look like this.
Meaning that the equivalent effective annual rate to 5.2% APR is 5.33% effective annual.
Best of luck.
Answer:
Hedging increases value of a company through:
Reducing costs of financial distress.
Explanation:
Hedging is a risk reduction and management strategy, which a company employs to offset or reduce its losses in investments by assuming opposite positions in some related assets. The reduction in risks through hedging results in some reduction in the profitability of the investments, based on the basic understanding of risk-return trade-off. Hedging strategies are done with derivatives, such as options and futures contracts.
Answer:
$487,400
Explanation:
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
The total shareholders’ equity at the end of Year 1
= $442,400 + $98,000 + $1,000 - $54,000
= $487,400
Common stock, net gain on available-for-sale investments in debt securities and report net profit increases the shareholder's equity while dividend paid reduces it hence the signs assigned.
The above answer can be explained as under.
The total inventory of Barrington = Beginning Inventory + Purchases
Beginning Inventory = $ 100,000, Purchases = $ 750,000
Ending inventory = $ 90,000
Inventory consumed = total inventory of Barrington - Ending inventory = $ 750,000 - $ 90,000
Inventory consumed = $ 660,000
The journal entry to record inventory consumed -
Cost of goods sold ...... Dr.... $ 660,000
Merchandise Inventory.....Cr.... $ 660,000
Answer:
COGS= $807,500
Explanation:
<u>First, we need to calculate the unitary cost for direct material, direct labor, and manufacturing overhead:</u>
direct material= 2*2= $4
direct labor=2.7*20= $54
overhead= 2.7*10= $27
Total unitary cost= $85
<u>Now, the cost of goods sold:</u>
COGS= 85*9,500= $807,500
