In 1968 president Johnson announced:

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will

-BARSIC- [3]

Answer:

$24.86

Explanation:

The estimated stock of Zephyrl is $50

This is for a period of 5 years

The rate of return is 15%

Therefore the price that will be paid for this stock can be calculated as foloes

50= x (15/100^5)

50= x (0.15+1^5)

50= x (1.15^5)

50= 2.0113x

Divide both sides by the coefficient of x

= 50/2.0113

= 24.86

Hence the price that will be paid for the stock is $24.86

3 0

3 years ago

Many business people believe that marketing should focus on factors other than financial goals, such as ___.

Sindrei [870]

Answer:

Corporate citizenry

Explanation:

Many business people believe that marketing should focus on factors other than financial goals, such as Corporate citizenry

3 0

3 years ago

12. You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with

Semenov [28]

Answer:

C. Borrowing $43 at the risk-free rate and investing the total amount ($143) in the risky asset.

Explanation:

Outcome Return For $100 = (115 - 100)/100 = 15%;

0.15 = w1(0.12) + (1 - w1)(0.05)

0.15 = 0.12w1 + 0.05 - 0.05w1

0.10 = 0.07w1

w1 = 1.43($100)

w1 = $143;

(1 - w1)$100 = $100 - $143

(1 - w1)$100 = -$43

7 0

3 years ago

Marie is putting together a retirement plan and is scheduled to retire in 40 years. She is planning to open a retirement account

kap26 [50]

Answer:

R=407.11$

Explanation:

Since the Marie wants to contribute equal amount per month in order to get the $3,000,000 after 40 years, therefore the future value of annuity formula shall be applied to the given question to solve the problem.

Future value of annuity=R[((1+i)^n-1)/i]

R=monthly investment to be made=?

n=number of payments involved=40*12=480

i= interest rate=10.5%/12=0.875%

Future value of annuity=$3,000,000

$3,000,000=R[((1+0.875%)^480-1)/0.875%]

R=407.11$

6 0

4 years ago

National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature o

Levart [38]

Answer:

a)

Total $483,841.9681

b)

cash 483,842 debit

discount on BP 16,158 debit

Bonds Payable 500,000 credit

c)

attached the schedule

d)

interest expense 24,192.1 debit

discount on BP 1,692.1 credit

cash 22,500 credit

e)

interest expense 24276.7 debit

discount on BP 1776.7 credit

cash 22500 credit

Explanation:

The price of the bonds is the present valeu of the maturity and coupon payment at the market rate:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment:

22,500.000 (500,000 x 9% /2 )

time 8 (4 years x 2 payment per year)

rate 0.05 (10% / 2)

$22500 \times \frac{1-(1+0.05)^{-8} }{0.05} = PV\\$

PV $145,422.2871

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 500,000.00

time 8.00

rate 0.05

$\frac{500000}{(1 + 0.05)^{8} } = PV$

PV 338,419.68

PV c $145,422.2871

PV m $338,419.6810

Total $483,841.9681

We compare against face valeu to deteminate wether is premium or discount.

procceds 483,842

face value 500,000

discount on bonds payable -16,158

As lower it is a discount.

For the interst we calcualte doing market rate times carrying value at the time given.

then we subtract the cash outlay and the difference is the amortization in the discounts

5 0

3 years ago