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hoa [83]
2 years ago
6

[Related to Solved Problem​ 3.1B] In​ 2015, the Washington Nationals baseball team signed pitcher Max Scherzer to a contract to

play for them for seven years. He would be paid​ $15 million dollars per year for 14 years—an additional 7 years beyond the end of the time he would be committed to play for the Nationals. The contract was widely reported as being worth​ $210 million​ (or $15 million per year×14 ​years). One baseball writer​ argued, though, that "this deal serves as a nice reminder that the payment terms of a deal can have an impact on the actual value of the contract." ​Source: Dave​ Cameron, "Max Scherzer and When​ $210 Million​ Isn't $210 ​Million," fangraphs​, January​ 19, 2015. Which of the following statements best represents the actual value of the​ contract? A. The actual value of the contract is more than​ $30 million for each year he plays. B. ​Scherzer's contract is worth​ $210 million on the day he signs it. C. The actual value of the contract is less than​ $30 million for each year he plays. D. The actual value of the contract is​ $30 million for each year he plays. Assume for simplicity that Scherzer receives his​ $15 million per year salaries for​ 2018, 2019, and 2020 at the end of each calendar year. The interest rate for this period of time is​ 7%. The present value of the salaries he will receive for these three years on January​ 1, 2018 is approximately A. ​$41.9 million. B. ​$45 million. C. ​$36.7 million. D. ​$39.4 million.
Business
1 answer:
Ne4ueva [31]2 years ago
3 0
That’s to long but 30 x 210
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Option d. $35.00 is the share price that one should pay for the stock today to get the required return

The share price, or the price you will pay for the company's stock right now, can be calculated using the necessary rate of return calculation, the formula is as follows:

RRR=(EDP/SP)+DGW

where;

RRR=required rate of return

EDP=expected dividend payment from share

SP=share price

DGW=dividend growth rate

In our case:

RRR=15.40%=15.4/100=0.154

EDP=$2.80

SP=unknown

DGW=7.40%=7.40/100=0.074

Substituting the values in the formula we get the following:

0.154=(2.80/SP)+0.074

(0.154-0.074)=(2.80/SP)

0.08=2.80/SP

SP=2.80/0.08

So, the share price of the stock=$35

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1 year ago
Peter hires Brunhilda to represent him and assist with the sale of his home. They sign a listing contract to memorialize their r
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Answer:

c. Express agency

Explanation:

An express agency can be defined as a type of contractual agreement between two (2) parties, which typically involves one party being instructed and authorized to act on behalf of the other person, usually referred to as the principal. Express agency is a fiduciary role.

In this scenario, Peter hires Brunhilda to represent him and assist with the sale of his home. They sign a listing contract to memorialize their relationship. Thus, the type of agency that has been created between Peter and Brunhilda is an express agency.

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2 years ago
Received contributions of $ 10 comma 000$10,000 in exchange for common stock. a. Increase asset (Cash) ; Increase equity (Common
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Answer:

The answer is stated below:

Explanation:

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This transaction will have an impact on the Accounting Equation of the Accounts, which is :

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As the cash is received, there will be an increase in the assets and under the cash account of the current assets. Though the cash is against the common stock, which increases the common stock account upon the side of the equity.

Therefore, it will be:

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This transaction will have an impact on the Accounting Equation as:

As the equipment is purchased will in turn lead to increase in the assets side, under the equipment account and it is purchased on account, which means on credit, that leads to increase in the liability under the Accounts Payable account.

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