Answer:
You would pay approximately $35.00 today
Explanation:
The cost of the stock at the beginning of the year 20
= 20/9.75%
= 20/0.0975
= 205.13 dollars
We find the current price of the stock
= Fv/(1+r)^n
= 205.13/(1+9.75%)¹⁹
= 205.13/1.0975¹⁹
= 205.13/5.86
= $35.00
From this calculation you have to pay 35 Dollars today.
Answer:
the cost that allocated to the start up business is $61,600
Explanation:
The computation of the amount of the cost that allocated to the start up business is given below:
= Manufacturing facility costing × maintaining the overall cost percentage
= $560,000 × 0.11
= $61,600
Hence, the cost that allocated to the start up business is $61,600
We simply applied the above formula so that the amount could come
Answer:
Appalachian Beverages
The Updated current ratio is:
= 1.65
Explanation:
a) Data and Calculations:
Current assets = $39,900
Current ratio = 1.90
Current liabilities = $21,000 ($39,900/1.90)
Current Assets:
Beginning balance = $39,900
Inventory $5,100
Cash ($2,000)
Ending balance = $43,000
Current Liabilities:
Beginning balance = $21,000
Accounts Payable $5,100
Ending balance = $26,100
Analysis of Transactions:
1. Inventory $5,100 Accounts Payable $5,100
2. Delivery Truck $10,000 Cash $2,000 Two-year Note Payable $8,000
Updated current ratio = Current assets/Current liabilities
= $43,000/$26,100
= 1.65
Answer:
Cost of common equity is 15.7% and WACC is 7.2%
Explanation:
D1 is
D1= 2.25 (1+0.05)
The cost of common equity is
Rs = 2.36/ 22.00 + 5% =0.157= 15.7%
The cost of common equity is weighted average cost of capital (WACC)
WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)
WACC = 0.03 *0.6 + 0 + 0.054
WACC = 0.018 + 0.054
WACC = 7.2%
Answer:
Follows are the solution to the question:
Explanation:
m = 4,
EAR = 
The successful quarter cumulative rate of interest = 8.24 \%
In Method 2 use Tool in Texas:
By Using the (ICONV) worksheet:
1)
To pick the worksheet, click ICONV 2.
2)
Its previous meaning will represent the NOM.
3)
To clear the worksheet, click [CLR WORK] 2nd
Continue as below.
Displayed keystrokes:
NOM = previous value 2nd ICONV:
NOM = 0.00 2nd CLRWORK:
8 DAYS: Name = 8.00.
EFF: DownArrow = 0.00
DownArrow: C / Y = meaning previous
4)
DOS: C / Y = 5.00 p.m.
EFF: DownArrow = 0.00
CPT: FRP = 8.24
