Answer:
The answer is D. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
Explanation:
verification.
A perpetuity is an annuity that has no end, or a stream of cash payments that continues forever.
Answer:
1. Sam purchases 3 green eggs every month and 3 ham slices every month. He spends $24 on eggs and $36 on ham.
2. Ham provides Sam with the greatest net benefits.
3. If the eggs cost $6 the net benefits for Sam would be the same for both
( egg and ham)
Explanation:
Given data:
cost of per green egg per month = $12
2nd egg ................................... = $10
3rd egg ................................... = $8
cost of 1 slice ham per month = 20
2nd slice ........................= $16
3rd slice ..................... = $12
1. Sam purchases 3 green eggs every month and 3 ham slices every month. He spends $24 on eggs and $36 on ham.
2. Ham provides Sam with the greatest net benefits.
3. If the eggs cost $6 the net benefits for Sam would be the same for both ( egg and ham)
Answer:
Closing Inventory value is $3,485.
Explanation:
FIFO is the inventory costing method which assumes that the item purchased earlier will be sold first and the item purchases at last will be sold at last.
According to FIFO the inventory cost of McCarthy Company is as follow:
Date Description Price Unit Total Balance
October 1 Opening $200 8 $1,600 $1,600
October 2 Purchases $205 20 $4,100 $5,700
October 4 Sales $200 8 $1,600 $4,100
Sales $205 3 $615 $3,485
Closing Inventory value is $3,485.
s you probably know, brand equity is becoming increasingly important factor to successful brands. Brand equity has the ability for firms to to gain additional market share, at a price premium, with increased customer loyalty, and greater acceptance of new products. It also provides significantly more access to more retailer channels and easier ability to enter new markets.
Professional valuation companies that rank firms on the brand equity value consider how much the brand contributes to additional profitability. Here are the top 10 brands for 2015 as determined by Millward Brown.
Apple
Google
Microsoft
IBM
Visa
AT&T
Verizon
Coca-Cola
McDonalds
Marlboro
Answer:
$656.82
Explanation:
The calculation of required return is shown below:-
Face value (FV) = $1,000
Coupon rate = 12.00%
Number of compounding periods per year = 4
Interest per period (PMT) = $1,000 × 12.00 ÷ 4
= $30.00
Number of years to maturity = 10
Number of compounding periods till maturity (NPER) = Number of compounding periods per year × Number of years to maturity
= 40
Required rate of return = 20.00%
Required rate of return per period (RATE) = 5.00%
Bonds value = -PV(RATE,NPER,PMT,FV)
= $656.82
Therefore we applied this formula into excel.