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Alja [10]
3 years ago
7

Young Corp. purchased equipment by making a down payment of $4,000 and issuing a note payable for $18,000. A payment of $6,000 i

s to be made at the end of each year for three years. The applicable rate of interest is 8%. The present value of an ordinary annuity factor for three years at 8% is 2.58, and the present value for the future amount of a single sum of one dollar for three years at 8% is .735. Shipping charges for the equipment were $2,000, and installation charges were $3,500. What is the capitalized cost of the equipment?
Business
1 answer:
Vera_Pavlovna [14]3 years ago
3 0

Answer:

Total capitalized cost  24,980

Explanation:

The shipping and installation cost are capitalzied as they are cost needed to make the equipment ready to use.

The down payment will be in his full amount as it is done "today".

The the note, which is an annuity will be multiplied by the annuity factor

and the note

down payment:               4,000

shipping charges            2,000

installation                       3,500

6,000 annuity x 2.58 = <u> 15,480  </u>

Total capitalized cost  24,980

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"MMP Incorporated generated FCF in the most recently completed year of $780,000. We expect FCF to grow by 10% in year 1, 8% in y
dimaraw [331]

Answer:

The value per share of common stock today is $23.94

Explanation:

To calculate the worth of the stock today, we first need to calculate the value of firm using FCF and then calculate the value of equity by deducting the market value of debt and preferred stock from the value of firm. Then we will divide the value of equity by the number of common stock shares.

Value of firm will be calculated using the discounted cash flows model approach. The value of firm will be,

Value of firm = 780000 * (1+0.1) / (1+0.13)   +   780000 * (1+0.1) * (1+0.08) / (1+0.13)^2  +  780000 *(1+0.1)*(1+0.08)*(1+0.07) / (1+0.13)^3  +  

[ 780000 *(1+0.1) *( 1+0.08) *(1+0.07) *(1+0.06)) / (0.13 - 0.06)] / (1+0.13)^3

Value of firm = $12,577,754.16

Value of equity = $12,577,754.16  -  (2000000 + 1000000)  = $9,577,754.159

Value per share = $9,577,754.159 / 400000

Value per share = $23.944 rounded off to $23.94

6 0
2 years ago
Badger Enterprises purchased aluminum from JG Metals. When Badger Enterprises recorded this transaction, they made entries into
Leya [2.2K]
Perpetual inventory system - is the type of inventory system Badger Enterprise uses. A perpetual inventory system is when companies keep track of each individual purchase and sale of inventory continuously. If they use a periodic inventory system, they will do it periodically, or over a given point in time. 
4 0
3 years ago
Read 2 more answers
A cylindrical candle that is 15 cm high has a diameter of 8 cm. Sketch
drek231 [11]

Answer:

  • See the figure attached with the sketch of the shape.
  • Volume = 0.75m³

Explanation:

The<em> sketch </em>of the <em>shape</em> is shown on the diagram attached indicating the <em>height </em>(<em>15 cm</em>), the <em>diameter</em> (<em>8cm</em>), and the radius (4cm).

The<em> volume</em> of a <em>cylindrical </em>shape is calculated with the formula:

      Volume=\pi \times radius^2\times height

The radius is half the diameter: 8cm / 2cm = 4 cm.

To express in terms of m (meters) convert the radius and the height from cm to m:

  • 15cm × 1m/100cm = 0.15m
  • 4cm × 1m/100cm = 0.04m

Substitute in the formula and compute:

        Volume=\pi \times (0.04m)^2\times (0.15m)\\ \\ Volume=0.75m^3

6 0
2 years ago
When writing promotional messages for social media sites, how does the process change?
elixir [45]

Answer:

<u>The emphasis shifts to encouraging and participating in online conversations.</u>

Explanation:

The internet has revolutionized the way companies establish communication with consumers. In this scenario, there are social media, which are an important tool for an organization to implement its digital marketing strategy, which is increasingly popular in the business world, since it is a low-cost means of disseminating messages and content. High visibility, since most people today have access to social media.  There is also the measurement of accesses and results, which helps to align the strategy

Therefore, marketers must be analytical and accurate to achieve good results with digital marketing. Users of social media expect to have a deeper relationship with the company, as it is an easy and fast way to exchange messages, it is necessary that this relationship be prioritized in the development of promotional messages, they must present content that generates engagement and represents something meaningful to your target audience.

4 0
3 years ago
If the price of a good increases by 5% and the quantity demanded decreases by 5%, then at that price, the good is _____.
anastassius [24]

Answer: unitary price elastic

Explanation:

A good is unitary price elastic if a change in price leads to the same proportional change in quantity demanded.

The coefficient of a good with unitary elasticity is 1 .

Coefficient of elasticity = percentage change in quantity demanded / percentage change in price

= 5% / 5% = 1

I hope my answer helps you

7 0
2 years ago
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