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3 years ago

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You currently have $7,500 to invest. You can invest the full amount now for a period of 9 years at which time you want to have $

15,000. Approximately what rate of return is needed to accomplish this investment goal? 8.01% 7.59% 9.65% 8.50%

1 answer:

faust18 [17]3 years ago

7 0

the approximate rate of return that is needed to accomplish the investment goal is 8.50%

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The Outlet Mall has a cost of equity of 16.8%, a pretax cost of debt of 8.1%, and a return on assets of 14.5%. Ignore taxes. Wha

krok68 [10]

Answer:

0.36

Explanation:

Cost of equity of 16.8%,

Pretax cost of debt of 8.1%

Return on assets of 14.5%

As per NN proposition: Cost of equity = Return on asset + D/E ratio (Return on asset-Cost of debt)

0.168 = 0.145 + D/E (0.145 - 0.082)

0.168 - 0.145 = D/E (0.064)

0.023 = D/E (0.064)

D/E = 0.023/0.064

D/E = 0.359375

D/E = 0.36

Thus, the debt-equity ratio is 0.36

8 0

2 years ago

You can insure a $42,000 diamond for its total value by paying a premium of D dollars. If the probability of loss in a given yea

ella [17]

Answer:

$E(X) =\sum_{i=1}^n X_i P(X_i)$

Replacing the values that we have:

$1 = 0.98*a + 0.02(a-42) = 0.98a +0.02a -0.84$

And solving for a we got:

$1.84 = a$

So then the premium value for the insurance on this case should be 1840 dollars.

Explanation:

For this case we can define the random variable X as the gain ( in thousand of dollars) of insurance company

We assume that the premium clase charge and amount of a to the company and we know from the info given that:

$p(X=a) = 1-0.02 = 0.98$

$p(X = a-42) = 0.02$

$E(X) = 1$ represent the expected gain in thousand of dollars

The expected value of a random variable X is the n-th moment about zero of a probability density function f(x) if X is continuous, or the weighted average for a discrete probability distribution, if X is discrete.

And using the definition for a discrete random variable we know that :

$E(X) =\sum_{i=1}^n X_i P(X_i)$

Replacing the values that we have:

$1 = 0.98*a + 0.02(a-42) = 0.98a +0.02a -0.84$

And solving for a we got:

$1.84 = a$

So then the premium value for the insurance on this case should be 1840 dollars.

5 0

3 years ago

At the beginning of the year, manufacturing overhead for the year was estimated to be $477,590. At the end of the year, actual d

neonofarm [45]

Answer:

At the beginning of the year used in the predetermined overhead rate must have been $16.30 per labor hour

Explanation:

Estimated manufacturing overhead = $477,590

Actual Labor hours = 29,000

Actual Manufacturing overhead = $472,590

Over application of manufacturing overhead = $110

As we know:

Over applied manufacturing overhead = Manufacturing overhead applied - Actual manufacturing overhead

$110 = Manufacturing overhead applied - $472,590

Manufacturing overhead applied = $110 + $472,590

Manufacturing overhead applied = $472,700

Manufacturing overhead applied = Actual Labor Hours x Predetermined overhead rate

$472,700 = 29,000 hours x Predetermined overhead rate

Predetermined overhead rate = $472,700 / 29,000 hours

Predetermined overhead rate = $16.30 per labor hour

7 0

3 years ago

Accompanying a bank statement for Marsh Land Properties is a credit memo for payment on a $15,000 one-year note receivable and $

SVETLANKA909090 [29]

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr 15,900

To Notes Receivable A/c $15,000

To Interest Revenue A/c $900

(Being cash is collected with respect of notes receivable and interest revenue)

For recording this transaction, we debited the cash account and credited the notes receivable and interest revenue account

4 0

3 years ago

Larkspur, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 80 units were sol

disa [49]

Answer:

Explanation:

Date Unit Unit cost Total Goods sold Cost Total

May 1 28 9 252 28 9 252

May 15 26 10 260 26 10 260

May 24 39 11 429 26 11 286

Total 93 941 80

1) Weighted average unit cost = 941/93 = $10.118

FIFO method

2)Ending inventory (93-80)*11 =$ 143

FIFO method assumes that the first set of inventory are the first to be sold

LIFO method

LIFO assumes that the last set of inventory are the first to be sold

Goods Sold Cost Total

39 11 429

26 10 260

15 9 135

Ending Inventory = (93-80)*9 = $117

Average Cost Method

Ending Inventory = 13 * 10.118 =$131.534

5 0

3 years ago