Answer:
Instructions are below.
Explanation:
Giving the following information:
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.
To calculate the present value, first, we need to determine the final value.
i= 0.09/12= 0.0075
n= 30*12= 360
<u>Martha:</u>
FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}
A= montlhy payment
FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}
FV= 366,148.70 + 2,746.12
FV= 368,894.82
Now, the present value:
PV= FV/ (1+i)^n
PV= 368,894.82/ 1.0075^360
PV= $25,042.80
<u>Stewart:</u>
FV= {A*[(1+i)^n-1]}/i
A= monthly payment
FV= {200*[(1.0075^360)-1]}/0.0075
FV= 366,148.70
PV= 366,148.70/1.0075^360
PV= $24,856.37
Martha has a higher present value because the interest gest compounded for one more time.
Answer:
keep producing as variable costs are being met.
Explanation:
A firm should shutdown in the short run if price is less than average variable cost. But since price is greater than the average variable cost, the firm should keep producing in the short run.
I hope my answer helps you
Answer:
Debit: $300
Credit: $300
Explanation:
See attached picture for explanation.
Answer:
Journal entries to record the 2023 amortization expense for intangible assets.
Date Accounts Titles and Explanation Debit Credit
Dec 31 Amortization Expense—Patents $14,180
($71,800*1/10 + $45,000 * 1/9
+ $40,000*1/10*6/12)
Patents $14,180
(To record amortization of patents)
Dec 31 Amortization Expense - Copyrights $6,335
($50,500*1/10 + $257,000*1/50*3/12)
Copyright $6,335
(To record amortization of copyrights)
Answer:
Amount of Dividend that was just paid is $1.39
Explanation:
Dividend yield = Dividend for next period / Current price
Dividend for next period = 44 * 3.3%)
=$1.452
Hence, dividend that was just paid=Dividend for next period*Present value of discounting factor(rate%,time period)
= 1,452 / (1+0.046)
= 1.452 / 1.046
= 1.3881
= $1.39
