Answer:
Total Stockholder's Equity = $7,200,000
Explanation:
Power Drive Corporation
Partial Balance Sheet
As on Dec.31, 2021
Stockholder's Equity:
Common Stock $100,000
Additional Paid in-Capital $4,500,000
Retained Earning at beginning $2,000,000
Add: Net income <u>$600,000</u>
Total Retained Earnings <u>$2,600,000</u>
Total Stockholder's Equity <u>$7,200,000</u>
The payback period of the project is 3.3 years.
Payback period = initial investment/ annual cash flow
= 50,000/15,000
= 3.3 years.
The time period payback period refers to the amount of time it takes to get better the fee of an funding. surely put, it's miles the period of time an investment reaches a breakeven point. human beings and groups in particular invest their money to receives a commission again, which is why the payback length is so vital.
Payback period in capital budgeting refers back to the time required to recoup the budget expended in an funding, or to attain the ruin-even factor. for example, a $a thousand funding made at the start of 12 months 1 which again $500 at the quit of year 1 and year 2 respectively could have a two-year payback duration.
In simple terms, the payback period is calculated by dividing the cost of the funding via the annual coins waft till the cumulative coins flow is nice, that's the payback yr. Payback length is typically expressed in years.
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Answer:
$5.97
Explanation:
In order to determine the capital gain of the bond in a year's time,it is first first of all important to calculate the yield to maturity on the bond which is arrived at by applying the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay over its entire life of 15 years which is 15
pmt is the annual interest,7.9%*$1000=$79
pv is the current market price of the bond which is $790
fv is the value of $1000
=rate(15,79,-790,1000)=10.79%
Afterwards,the price of the bond in one year' time can then be calculated:
=-pv(rate,nper,pmt,fv)
The variables in the formula are as above except for nper which would reduce by 1 in a year's time
=-pv(10.79%,14,79,1000)
pv=$ 795.97
Hence the capital gain=price now-price one year ago/price one year ago
price now is $795.97
price one year ago was $790
Capital gain=$795.97-$790=$5.97
Capital gain %= ($795.97-$790)/$790=0.76%
The answer is money order because it is an instrument used by a post office, express company and mostly by banks indicating that the payee may request and receive the amount indicated on the instrument or the money order. The money order is a trusted method of a payment than issuing a check because sometimes we get a bouncing check. A money order is a payment order for the amount of money you borrow in the banks or any express company that uses this instrument. And It is required that the funds should be prepaid for the amount shown in it.
Answer:
1. Economics - The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.
2. Opportunity cost - The next-best thing that must be forgone in order to produce one more unit of a given product.
3. Marginal analysis - Making choices based on comparing marginal benefits with marginal costs.
4. Utility - The pleasure, happiness, or satisfaction obtained from consuming a good or service.