Answer:
Explanation:
Present Value of Entire Underwriting Compensation=
Commission as a fixed % of Gross Proceeds + PV of Gain by exercising option to purchase shares.
Fixed Commission= 5000000*0.06
=300000
Gain by exercising option=200000*(12-5)
=1400000
PV of Gain =1400000/(1+0.15)
=1400000/1.15
=1217391.30
PV of Total Compensation=300000+1217391.30
=1517391.30
Answer: New brand.
Explanation:
The Coca-Cola company launched it's new brand of bottled water into the market. A brand is a name given to a particular product/service by which it can easily be identified.The Disani water is a new brand introduced into the market by which the Coca-Cola water products would be identified.
Answer:
$ 1844
Explanation:
A = P (1 + r / n) ^ nt ; where
A = Final Amount , P = Principal base, r = Interest rate , t = no. of time periods (usually years) , n = compounding in a time period (annually)
Given : P = 1700 , r = 2% , t = 4 , n = 12
A = 1700 [ 1 + 0.02 / 12 ] ^ (12 x 4)
1700 [ 1 + 0.0017 ] ^ (12 x 4)
1700 [ 1.0017 ] ^ 48
1700 [1.0849]
= 1844
Answer:
5.34 months
Explanation:
Pay back period calculates how long it takes for the amount invested in a project to be recovered from the cumulative cash flows.
Payback period = amount invested / cash flows
$5000 / $ 935 = 5.34 months
I hope my answer helps you
<span>The NPV function calculates the net present value of an investment, given a fixed discount rate.</span>
