Answer:
11.11%
Explanation:
Calculation for the common-size balance sheet value of inventory
First step is to find the Total assets
Using this formula
Total Assets=Net fixed assets +Current assets
Let plug in the formula
Total assets = $518 + 274 = $792
Second step is to find the Common -size value of inventory
Using this formula
Common -size value of inventory = Inventory/ Total assets
Let plug in the formula
Common-size value of inventory = $88/$792
= .1111, or 11.11%
Therefore the Common-size value of inventory will be 11.11%
Answer:
$812.49
Explanation:
Given that
Sale value of ordinary annuity = $4,947.11
Time period = 8 years
Interest rate = 6.50%
So by considering the above information, the annual annuity payment is
$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years
$4,947.11 = Annual annuity payment × 6.0888
So, the annual annuity payment is $812.49
Answer:
PV= $17,365,776.86
Explanation:
Giving the following information:
Cf= 2,200,000
Number of years= 20
Discount rate= 12%
Additional lump sum= 9,000,000
First, we need to calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000
FV= $167,515,373.4
Now, the present value:
PV= FV/(1+i)^n
PV= 167,515,373.4/1.12^20
PV= $17,365,776.86
Answer:
5.6%
Explanation:
A lot of information is missing, so I looked for similar questions to fill in the blanks:
"Outstanding debt of Home Depot trades with a yield to maturity of 8%.
The tax rate of Home Depot is 30%.
What is the effective cost of debt of Home Depot?"
the effective cost of debt or after tax cost of debt = debt's yield to maturity x (1 - tax rate) = 8% x (1 - 30%) = 8% x 0.7 = 5.6%
Interest is tax deductible, therefore, it creates a tax shield that lowers net interest expense.
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All commercial banks must keep an account with the Central Bank. These balances are used for cheque clearing purposes between banks. Payments for cheques between banks are set off at the Central Bank’s clearing house. The Central Bank can also demand commercial banks to deposit a certain percentage of their total deposits with the central bank in order to control the money supply.
The Central Bank is a lender of last resort and will aid commercial banks when needed. The Central Bank dictates the interest rate that commercial banks can offer by setting the bank rate. This is the interest rate set by the Central Bank and the rate at which commercial banks and the Central Bank do business, e.g. loans offered by the Central Bank to commercial bank.
