Answer:
PV(after-tax net return in 7th year) = 70.55 (Approx)
Explanation:
Given:
Number of year = 7
Pre-tax net returns (Fn) = $100
Growth rate = 4% = 0.04
Inflation = 3% = 0.03
Marginal tax rate = 30% = 0.3
Discount rate = 10% = 0.1
Computation:
Fn = Fo(1+g)ⁿ = 100(1.04)⁷
Fn = 131.6
Nominal net returns = 131.6(1.03)⁷
Nominal net returns = 161.85
After tax return = 161.85 (1 - 0.3)
After tax return = 113.30
After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%
PV(after-tax net return in 7th year) = 113.30
(1+0.07)⁻⁷
PV(after-tax net return in 7th year) = 70.55 (Approx)
Answer:
$4,469
Explanation:
Calculation for what The adjusted cash balance per the books on January 31 is
Using this formula
Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check
Let plug in the formula
Adjusted cash balance= $5325 - $31 -$500 -$325
Adjusted cash balance= $4,469
Therefore The adjusted cash balance per the books on January 31 is $4,469
Answer:
The answer is "400 meals at 2.50 dollars a day".
Explanation:
Please find the complete question and the solution in the attachment file.
In this question, when we compare the MR value as well as the MC, the monopolist produces up to the point where MR>MC.
In this, it happens before 400 meals at 2.50 per day and, so "400 meal at 2.50 dollars a day".
Answer:
The current price of the stock is $68.42
Explanation:
The dividends on a stock that pays a constant dividend and will cease paying dividend after a defined period can be treated as an annuity. The dividends are constant and are paid after equal interval of time and for a defined period of time. To calculate the price of the share today, we will use the formula for the present value of ordinary annuity. The formula is,
Present value = 9.8 * [ 1 - (1+0.11)^-14 / 0.11 ]
Present value or current price of the stock = $68.42
Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
