Answer:
(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?
To solve this problem, we must find the FV of each cash flow and add them.
To find the FV of a lump sum, we use:
FV = PV(1 + r)^t
[email protected]% = $625(1.11)^3 + $875(1.11)^2+ $1,150(1.11) + $1,250 = $4459
(b) What is the future value at a discount rate of 18 percent?
FV = PV(1 + r)^t
[email protected]% = $625(1.18)^3+ $875(1.18)^2+ $1,150(1.18) + $1,250 = $4852
(c) What is the future value at discount rate of 30 percent?
FV = PV(1 + r)^t
[email protected]% = $625(1.30)^3+ $875(1.30)^2+ $1,150(1.30) + $1,250 = $5597
Answer:
Transaction Assets Liabilities Stockholders' Equity
Issue common stock Increase NE Increase
Issue preferred stock Increase NE Increase Purchase treasury stock Decrease NE Decrease
Sale of treasury stock Increase NE Increase Declare cash dividend NE Increase NE
Pay cash dividend Decrease Decrease NE
100% stock dividend NE NE NE
2-for-1 stock split NE NE NE
When shares are sold or issued, they increase the stockholders equity as people buy these shares. They also increase assets because cash comes into the company when the shares are sold. This is why the Issuing of preference and common stock as well as the sale of Treasury shares had the same effects.
When cash dividends are declared, they become a liability that is owed to equity holders.
When these dividends are then paid, they remove the liability but reduce assets as cash is used to pay the dividends.
100% stock dividend reduces retained earnings but increases equity so stockholders equity does not change.
Drivers are keeping their cars longer than ever before. The average age of all cars on the road is over 11 years, up from eight years in 1995. Motorists who buy a brand-new car typically keep it for about six years, up from about four years in 2006.
mark brainliest :)
Answer:
A. citizens tend to have greater confidence in the economy.
Explanation:
When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.
This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy
Answer:
22.69%
Explanation:
Margin of safety = (forecasted sales - break-even sales) / forecasted sales
( $238,000 - $184,000) / $238,000 x 1000 = 22.69%