Answer:
$8,644.30 ≈ $8,644
Explanation:
Data provided in the question:
Amount to be paid, A = $16,000
Interest rate that can be earned, r = 8% = 0.08
Time period, n = 8 years
Now,
A = P × ( 1 + r)ⁿ
Here,
P is the present value
thus, on substituting the respective value, we get
$16,000 = P × ( 1 + 0.08 )⁸
or
$16,000 = P × 1.8509
or
P = $8,644.30 ≈ $8,644
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Answer:
$330
Explanation:
The computation of the dividend income received as on July 31 is shown below:
where,
Total number of shares purchased is
= 100 shares + 200 shares
= 300 shares
And, the dividend per share is $1.10
So, the dividend income received is
= 300 shares × $1.10
= $330
We simply applied the above formula to determine the dividend income received
Answer:
Check th explanation
Explanation:
2a.
Here, we will have to apply the economic production quantity as we have to identify optimal production quantity to minimize the cost.
Annual Demand D = 60000
Working Days = 240
Daily Demand d= 60000/240 = 250
Production Rate p = 300
Set up cost S = 150
Holding cost H = 3
Economic Production Quantity Q = (2DS/(H*(1-(d/p))))^(1/2)
Q = (2*60000*150/(3*(1-(250/300))))^(1/2)
Q = 6000 units
Answer:
$31.57 per share
Explanation:
Terminal Value (TV) = CF5(1 + g) / (Ke – g)
= $72,500*(1 + 0.0160) / (0.1540-0.0160)
= $73,660 / 0.1380
= $533,768
Year Cash Flow PVF at 15.40% PV of Free Cash Flow
1 48,200 0.866551 41,768
2 57,900 0.750911 43,478
3 71,300 0.650703 46,395
4 72,500 0.563867 40,880
4 533,768 0.563867 <u>300,974</u>
TOTAL <u>473,495</u>
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The current value per share of stock = Total Present value of future cash flows / Number of shares outstanding
= $473,495 / 15,000 shares outstanding
= $31.57 per share