Answer:
19.10%
Explanation:
The computation of annual percentage rate is shown below:-
Your loan rate states if one out of ten succeeds, after five years, so the nine failure will cover, and if the Blue Angel makes 10 loans of $168,000 each and needs a return of 19.1% on its portfolio of lending, then given amount will have to be accrued after five years.
= Value × (1 + interest rate)^number of years
= $168,000 × (1 + 0.191)^5
= $168,000 × 2.396397222
= $402,594.73
Now the annual percentage rate is
= (Future value ÷ value)^1 ÷ number of years - 1
= ($402,594.73 ÷ $168,000)^1÷5 - 1
= 19.09999981
or
= 19.10%
Answer:
the intrinsic value of the share is 71.03 dollars
That is the amount a rational investor would purchase the share.
Explanation:
there is a negative grow on the dividends thus, lowering the stock price according to the gordon model
d0 =11
d1 = d0 (1 + g)
being g = 4.75% negative:
11 (1 - 0.0475) = 10,4775
Then, we calcualate the ntrinsic value of the share:
Intrinsic value: 71,0338983 = 71.03 dollars
Answer:
C. Relevant range of production
Explanation:
Answer:
$ 0.61 per unit
Explanation:
The unit-of-activity method is one of the asset depreciation methods. Under this method, the depreciable cost of the asset is spread over the units produced. The formula is a more accurate measure of wear and tear.
In this case:
Depreciable cost=(purchase price -salvage value)
=$52000.00 -$3200.00
=$48,800.00
Depreciation per unit= Depricable cost / expected production
=$48,800/80000
=$ 0.61per unit