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lord [1]
3 years ago
15

A farmer purchased a module builder for $50,000. The bank is willing to loan him $37,000. The terminal value of this investment

is $15,000. There is a marginal tax rate of 25%, a growth rate of 2%, and a discount rate of 10%. What is the after tax terminal value of this investment
Business
1 answer:
Allisa [31]3 years ago
6 0

Answer:

the after tax terminal value would be $14,500

Explanation:

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(!!!PLEASE ANSWER FAST!!!) (!!!15 POINTS!!!)
MAVERICK [17]

Answer:

Explanation   highest paying

:

6 0
2 years ago
At the beginning of the twentieth century, for the most part, the only investments available to individual investors were corpor
MrMuchimi

Answer:

A. True

Explanation:

In the starting of the twentieth century, the only stock in which an individual invest is the stocks and the bonds but today there is a lot of different type of investment choices who provides the better return. Accprding to the demand of the investor there are various options available for invest

Hence, the given statement is true

5 0
3 years ago
Demand for a product is 500 units per month. The company incurs a fixed order placement, transportation, and receiving cost of 4
9966 [12]

Answer:

Economic Order Quantity is the level of inventory that minimizes the total inventory holding costs and ordering costs. It is one of the oldest classical production scheduling models. Economic order quantity refers to that number (quantity) ordered in a single purchase so that the accumulated costs of ordering and carrying costs are at the minimum level. In other words, the quantity that is ordered at one time should be so, which will minimize the total of. Cost of placing orders and receiving the goods, and Cost of storing the goods as well as interest on the capital invested.

economic order quantity (EOQ)

3 0
3 years ago
Restore Construction Company enters into a contract to remodel Sam’s Home Store, agreeing to use only products from United Build
BlackZzzverrR [31]

Answer:

Sam’s Home Store can enforce the contract against Restore Construction Company

Explanation:

In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.

6 0
3 years ago
You consider buying a share of stock at a price of $21. The stock is expected to pay a dividend of $2.04 next year, and your adv
just olya [345]

Answer:

E. None of the above

Explanation:

First we need to calculate the holding period return

Holding period return is the rate of return which an assets earns during the period in which it holds the assets.

Holding Period Return = (Selling Price - Initial Price + Dividend ) / Initial Price

Holding Period Return = ($24 - $21 + $2.04 ) / $21 = 0.24 = 24%

Now we need to calculate the expected return on the stock using CAPM formula as follow

Expected return = Risk free rate + Beta ( Market Risk Premium )

Expected return = rf + beta ( E(rm) )

Placing values in the formula

Expected return = 8% + 1.2 ( 16% )

Expected return = 27.2%

Abnormal return is the difference of Holding period return and expected return

Abnormal return = 27.2% - 24% = 3.2%

4 0
3 years ago
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