Answer:
a. $187.20.
b. $202.48.
c. $217.43.
Explanation:
Please find the below for detailed explanations and calculations:
We have the formula for determining the future price of the non-dividend-paying stock as below:
Future price = Spot price x (1+ annual risk free rate )n; which n = number of year(s) to maturity.
Thus, apply the general formula above, we have the below calculations:
a. Future price = 180 x (1+4%)^1 = $187.20;
b. Future price = 180 x ( 1+4%)^3 = $202.48;
c. Future price = 180 x (1+6.5%)^3 = $217.43.
Answer:
45.8 days
Explanation:
The computation of the days sales uncollected is shown below:
But before that first we need to find out the inventory turnover ratio which is
Inventory turnover ratio = Sales ÷ Accounts receivable
= $21,500 ÷ $2,700
= 7.96 times
Now Days sales uncollected is
= 365 ÷ Inventory turnover ratio
= 365 ÷ 7.96
= 45.8 days
We simply applied the above formulas
Answer:
QD=600-40P
Explanation:
The old equation for the demand for pizza is Qd = 300 - 20P
Now because of an increase in the price of a substitute the demand for pizza doubles, in order to find the new equation will multiply the old equation by 2 because the demand has doubled.
300*2=600
20P*2=40P
New equation = 600-40P
We can check whether our new equation is correct or not.
If we assume the price of pizza to be 10 and then put 10 in both the equations the quantity from equation 2 should be double that of equation 1.
Equation 1= 300-(20*10)
=300-200=100
Equation 2 = 600-(40*10)
=600-400=200
AS we can see the quantity doubled on the same price which means our equation is correct.
Answer:
Mitigated damages term
Explanation:
The best defense for Stewarts in this situation is Mitigated damage term. This enables him to reduce his penalty on the breach of contract,
Even though the situation was outside his control , but the contract he signed stipulated that he will pay $50,000/ day of delay in the project which had unfortunately happened.
However , the damages can be reduced or even avoided if he sue for mitigated damage term
Answer:
The correct answer to the following question is option C) $11,000 .
Explanation:
The phaseout limit for married couple filling their return jointly is up to $400,000, but in this case the annual gross income of Rhianna and Jay is $419,400 . So their annual gross income is $19,400 ($419,400 - $400,000) more, and then $19,400 / $1000 = $19.4 , which is approximately equal to $20.
Now the phase out limit would be $20 x $50
=$1000
For the 6 children , the tax credit wold be - $2000 x $6
= $12,000
From the above amount, the phase out amount will be deducted,
= $12,000 - $1000
= $11,000