Answer:
The expected cash collections of sales in October $91,00
Explanation:
It is assumed that the remaining Percentage of 15% (100%-50%-25%-8%-2%) is received Third month following sale.
Cash Schedule is attached with the answer in an MS Excel file, Please find it.
Answer:
a.
15%
b.
29.57
Explanation:
The price of a stock whose dividends are expected to grow at a constant rate forever can be calculated using the constant growth model of the dividend discount model approach. The DDM values the stock based on the preset value of the expected future dividends from the stock. The price of the stock today under this model is,
P0 = D1 / r - g
Where
P0 = Price of stock
D1 = Future Dividend
r = Expected rate of return
g = Growth rate
a.
As we have the price of the price of the stock, we need to calculate the expected rate of return by extracting the formula.
r = (D1 / P0) + g
As per given data
P0 = Price of stock = $34
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
Placing Values in the formula
r = ( $3.4 / 34 ) + 0.05
r = 0.15 = 15%
b.
As per given data
D1 = Future Dividend = $3.40
g = Growth rate = 5% = 0.05
r = Expected rate of return = 16.5%
Placing Values in the formula
P0 = D1 / r - g
P0 = $3.40 / (16.5% - 5%)
P0 = $29.57
Answer:
$5,400 billion
Explanation:
The computation of the level of loans would be
We know that
Multiplier = 1 ÷ reserve ratio
= 1 ÷ 0.05
= 20
And the required reserve would be
= Currently reserves - excess reserve
= $300 billion - $30 billion
= $270 billion
Now the level of loan would be
= $270 billion × 20
= $5,400 billion
Answer:
There are different factors that play into the costs.
Explanation:
For example, if you are a male, you tend to be more reckless. It also depends on the job you would be working at.
Answer:
$25,000
Explanation:
For computing the gain or loss, first, we have to determine the book value of bulldozer which is shown below:
Book value of bulldozer would be
= Originally cost - accumulated depreciation
= $124,000 - $59,500
= $64,500
And, the proceeds from the insurance company were $89,500
So, the gain would be
= $89,500 - $64,500
= $25,000
