Answer:
Present value= $3,642,651.54
Explanation:
Giving the following information:
You have just won the lottery and will receive $530,000 in one year. You will receive payments for 25 years, and the payments will increase by 4 percent per year. The appropriate discount rate is 10 percent.
First, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual payment= 530,000
i= 0.04 + 0.10= 0.14
n= 25
FV= {530,000*[(1.14^25)-1]}/0.14
FV= 96,391,538.43
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 96,391,538.43/ (1.14^25)
PV= $3,642,651.54
Answer:
B. False
Explanation:
Flotation costs are cost that are concerned with issuing new common stock. It is the amount of money or cost incurred by an organization when offering its securities to the public. The cost may include legal fees, auditing fees and registration fees. When the flotation cost goes higher, firms are more likely to use debts rather than preferred stock. This is simply because debt is lesser than both common stock and preferred stock. Also, its fallacy to think that preferred stock doesnt have flotation cost. Its only that its not as high as the ones for new common equity.
Answer:
LEWIS Co.
Flexible budget performance report
For month ended May 31
Flexible budget Actual results Variances Result
Sales $420,000 $435,000 $15,000 Fav
(1400*$300)
Variable expense $168,000 $172,000 $4,000 Unfav
(1400*$120)
Contr. margin $252,000 $263,000 $11,000 Fav
Fixed cost $125,000 $122,000 $3,000 Fav
Net Income $127,000 $141,000 $14,000 Fav
The False statement about Franchisee is " Franchisee is a method of distributing products or services involving a franchisor "
To find the False statement , we need to know more about Franchisee .
<h3>What is
Franchisee?</h3>
A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.
Franchisee in Territorial Rights:
Whether or not the franchisee is granted a form of territorial protection wherein, for example, the franchisor will not grant competing franchises. Typically franchisees will be granted an operating territory within which they are required and restricted to conduct the operations of their franchise business.
The franchise agreement will define where the franchisee may operate the franchised business, who the franchisee may or may not sell products or service to and any protection that may be afforded to franchisee regarding his or her territory.
Thus, we can conclude that the above statement is Typically, the franchisee determines the territory to be served by the franchise is False.
Learn more about Franchisee on:
brainly.com/question/16826168
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Answer:
c. 97.558%
Explanation:
Options are <em>"A. 50.0.% B. 2.442% C. 97.558% D.197.0% E. 47,442%"</em>
Mean = μ = 1447
Standard deviation = σ = 715
Observed value = X = 2855
Using z-score formula, Z = (X - μ) / σ
Z = (2855 - 1447) / 715
Z = 1.97
P(Z<1.97) = 0.97558
P(Z<1.97) = 97.558%
So, the probability of a stock-out is 97.558%.
