Answer:
Explanation:
The equation to calculate the <em>monthly payment</em> for fixed-rate loans is:
![Monthly\text{ }payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]](https://tex.z-dn.net/?f=Monthly%5Ctext%7B%20%7Dpayment%3DLoan%5Ctimes%20%5Cbigg%5B%5Cdfrac%7Br%281%2Br%29%5Et%7D%7B%281%2Br%29%5Et-1%7D%5Cbigg%5D)
Where:
- Loan = $8500 - $300 = 8,200
- r is the monthly interest = 5.75% / 12 = 0.0575/12 ≈ 0.00479
- t is the number of moths = 36
Substituting:
![Monthly\text{ }payment=\$8,200\times \bigg[\dfrac{(0.0575/12)(1+(0.0575/12))^{36}}{(1+(0.0575/12))^{36}-1}\bigg]=\$ 248.53](https://tex.z-dn.net/?f=Monthly%5Ctext%7B%20%7Dpayment%3D%5C%248%2C200%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%280.0575%2F12%29%281%2B%280.0575%2F12%29%29%5E%7B36%7D%7D%7B%281%2B%280.0575%2F12%29%29%5E%7B36%7D-1%7D%5Cbigg%5D%3D%5C%24%20248.53)
<u>Answer</u> is D. remain at $30,000.
<u>Explanation:</u>
Rick's Internet Corporation balance in retained earnings = $30,000
Appropriated earning for future business expansion = $15,000
This appropriated earning set for future use will have no effect on the total retained earnings, because for appropriate retained earnings, the entry is to debit the retained earnings account.
Also, it would be board's decision if they want to use the money from the retained earnings or add more capital to it.
Answer
This new position as a first line manager will require him to operate his departments. This role requires him to assign tasks, manage the work flow, monitor the quality of work, solve the employees problems and keep informing the middle and executive managers on challenges and success on the ground level of the company.
Explanations
First-line managers provide firsthand information on true challenges and can offer better and workable solutions. This is because they have the immediate view of the outcomes of the policies, strategies, marketing approaches and production capabilities of the company. They have the ear of upper managers, where they will offer solutions that can improve the processes in the company and the procedures. In addition to that, first-line managers are expected by the work-group employees to protect them from policies and initiatives which are unreasonable.
Option B
Analysis of the general environment enables a firm to identify: opportunities and threats
<u>Explanation:</u>
The general environment usually has a sturdy impact on a firm's level of achievement, officials must pursue biases and circumstances as they emerge and attempt to envision the associations of these biases and circumstances.
The environmental inquiry is an imperative tool. It is a manner to distinguish all the outside and subjective factors, which can influence the organization’s execution. The review involves valuing the level of threat, an opportunity the determinants might impersonate. These determinants are succeeding rendered into further means.
Answer:
Cost of external equity= 26.9%
Explanation
<em>According to the dividend valuation, the value of a stock is the present value of expected future dividends discounted at the required rate of return.</em>
The model can me modified to determined the cost of equity having flotation cost as follows:
Ke = D(1+r )/P(1-f) + g
Ke= Cost of equity
D- current dividend,
D(1+g) - dividend next year
p- price of stock - 31,00$
f - flotation cost - 14%
g- growth rate - 7%
Ke= 5.30/31× (1-0.14) + 0.07
= 0.2687997 × 100
= 26.9%
