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vichka [17]
3 years ago
8

Kingbird Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equ

ipment has a useful life of 10 years. Kingbird wants a guarantee that the residual value of the equipment at the end of the lease is at least $4,000. MTBA agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $2,000 at the end of the lease term. If the fair value of the equipment at lease commencement is $60,000, what would be the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6%? (
Business
1 answer:
kolbaska11 [484]3 years ago
8 0

Answer:

$ 7,994

Explanation:

Fair Value of lease 60,000

Less Present value of garanteed residual value$ 2,368

($4000*1/1.06^9)

Amount to be recovered through periodic payment $ 57,632

PVAD (9 years ,6%) 7.20979

Minimum Lease at the beginning of each year (C/D) $ 7,994

Therefore the amount of the annual rental payments Kingbird demands of MTBA, assuming each payment will be made at the beginning of each year and Kingbird wishes to earn a rate of return on the lease of 6 $7,994

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Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net I
Zepler [3.9K]

Answer:

6.0

Explanation:

Market to book ratio is calculated as ; Market capitalization / Net book value.

Where,

Market capitalization = Price per share × Total shares outstanding

= $24 × 25,000,000 shares

= $600,000,000

Then,

Net book value = Total assets - Total liabilities

= $200,000,000 - $100,000,000

= $100,000,000

Therefore,

Market to book ratio = $600,000,000 / $100,000,000

= 6.0

8 0
3 years ago
The 80/20 principle holds that 20 percent of all customers generate 80 percent of the demand. Although the percentages usually a
myrzilka [38]

Answer: The consumer market segment that is described is the Usage-Rate Segmentation.

Explanation:

This type of consumer market segment is used to determine how much a buyer/consumer uses the product. This put the consumer into a particular category that is used by companies when deciding on their products.

The consumers/customers are put into categories such as the;

  • heavy product users
  • light product users
  • non-users
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Larger companies tend to market towards the heavy product users instead of the other 3 categories.

7 0
3 years ago
you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar)
timama [110]

Question

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:

Year     cashflow

0           -100

1-10            15

0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project

Answer:

NPV= -$32.58

Explanation:

The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:

Ke= Rf +β(Rm-Rf)  

Ke =? , Rf- 5%,, Rm-15%, β- 1.30

Ke=5% + 1.30× (15-5)=  18%

The NPV = Present value of cash inflow - initial cost

 =  A×(1-(1+r)^(-10)/r  - initial cost

A- 15, r-18%

NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58

NPV = -$32.58

5 0
3 years ago
The forecast for your company’s headquarters predicts the area hit head on by a hurricane,. The company sends you to their cold
zubka84 [21]

Answer:

The correct answer is <em>The site will have all of the company’s applications.</em>

Explanation:

It is the only way to ensure a minimum or zero level of inactivity, because otherwise people will not have the necessary tools to execute their work.

It is hardly obvious that due to the nature of the tasks it is impossible to try to adapt a space that is not adequate to execute them, since the conditions must be the necessary ones to guarantee it.

5 0
3 years ago
Wreckorp wants to maintain an exclusivity image for its product line of sports equipment. It limits its distribution to 100 stor
lara31 [8.8K]

Based on the fact that Wreckorp wants to maintain an exclusivity image and limits its distribution to 100 stores in each region, it is Impossible to determine legality based on the information provided.

<h3>Are Wreckorp's actions legal?</h3>

It is not possible to know if Wreckorp's actions are legal or illegal because the information provided does not give the full facts.

The actions of Wreckorp may be legal if no region is being disadvantaged but it could be illegal if this is the case. More information is therefore needed.

Options for this question are:

  • Strictly illegal
  • Impossible to determine legality based on the information provided
  • Strictly Legal

Find out more on the legality of business actions at brainly.com/question/4556120.

#SPJ1

6 0
1 year ago
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