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KatRina [158]
3 years ago
7

. You just inherited a trust that will pay you $100,000 per year in perpetuity. However, the first payment will not occur for ex

actly four more years. Assuming an 8 percent annual interest rate, what is the value of this trust?
Business
1 answer:
Aliun [14]3 years ago
4 0

Answer:

Present Value= $918,787.32

Explanation:

Giving the following information:

You just inherited a trust that will pay you $100,000 per year in perpetuity.

The first payment will not occur for exactly four more years.

Interest rate= 8%

First, we need to determine the value of the perpetual annuity in 4 years. Then, we calculate the value today.

Present value in four years:

PV= Cf/i

Cf= cash flow

PV= 100,000/0.08= $1,250,000

Now, using the following formula, we calculate the value today.

PV= FV/(1+i)^n

PV= 1,250,000/1.08^4

PV= $918,787.32

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Rothstein Corp. had the same capital structure in 2021 and 2022, consisting of the following: Preferred stock, $12 par, 5% cumul
crimeas [40]

Answer:

2.37

Explanation:

Earnings per share is a monetary value for every outstanding share. The EPS is reported in the income statement of the company. Rothstein Corp. has paid $20,000 of preference dividend in the year 2022. The annual preference dividend is $12 par * 20,000 shares * 5% cumulative = 12,000 per year.

The total preference dividend for year 2021 and 2022 is 24,000 out of which 20,000 is already paid.

To calculate EPS we subtract unpaid preference dividend from net income $600,000 - $4,000 = 596,000

EPS = Net income after preference shares dividend / outstanding number of shares

EPS = $596,000 / 250,000 shares = 2.37

5 0
3 years ago
What formula would be used to add two cells together after the equal sign?
trapecia [35]

Answer:

D. Column#Row#+Column#Row#

Explanation:

A spreadsheet can be defined as a file or document which comprises of cells in a tabulated format (rows and columns) typically used for formatting, arranging, analyzing, storing, calculating and sorting data on computer systems through the use of Microsoft Excel.

Microsoft Excel is a software application or program designed and developed by Microsoft Inc., for analyzing and visualizing spreadsheet documents.

In Microsoft Excel, the SUMIF function is a function that is designed to used to sum cells that meet criteria such as text, dates, and numbers. Also, this function can be used with the following logical operators; <, >, and =.

On a related note, the formula that would be used to add two cells together after the equal sign is Column#Row#+Column#Row#.

For example, A10B2 + A14B3.

8 0
3 years ago
Firm 1 and firm 2 are competing for a franchise. The present value of the net revenues generated by the franchise are equal to R
kvasek [131]

Answer:

Equilibrium level of spending = R

Explanation:

Firm 1 : I1 ( lobbying expenditure ) , P of firm 1 = I1/(I1 + I2 )

Firm 2 : I2( lobbying expenditure) , P of firm 2 = I2/(I1 + I2 )

The equilibrium level of spending for each firm will be = present value of net revenues that is being generated by the Franchise

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ollegr [7]

Answer:

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the mean is also the average which is the total sum divide by 5

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otez555 [7]

Answer:

i will say to use share or cooperatives

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