Answer:
$4,038
Explanation:
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
Present Value = Future Value x (1/ ( 1 + interest rate ) ^ number of periods)
Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)
Present Value = 6,000 x 0.68058
Present Value = $4,038
Answer:
A. Unrealized Holding Loss - Trading 3,400
Fair Value Adjustment - Trading 3,400
Explanation:
Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:
Dr Unrealized loss on trading security 3,400
Cr Debt investments 3,400
This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.
Answer:
$202,701,713.58
Explanation:
Present value of this liability = Value of liability / ((1+r)^t)
Present value of this liability = $750 million / ((1+0.08)^17)
Present value of this liability = $750 million / (1.08)^17
Present value of this liability = $750 million / 3.7000180548
Present value of this liability = $202,701,713.5840815
Present value of this liability = $202,701,713.58
Answer:
C) -30.6%, 54.6%
Explanation:
95% Confidence Interval = (Average Return - 2*Standard Deviation, Average Return + 2*Standard Deviation)
=(0.12 - 2*0.213, 0.12 + 2*0.213)
= -30.6%,54.6%
Therefore, The 95% confidence interval for 2010 returns is -30.6%,54.6%.
Answer:
The demand for Post Raisin Brand cereal is: ELASTIC
the demand for all types of breakfast cereals is: INELASTIC
Explanation:
To calculate the price elasticity of demand (PED) we can use the following formula:
PED = % change in quantity / % change in price
- If PED > 1, the demand is price elastic
- If PED = 1, the demand is price unitary
- If PED < 1, the demand is price inelastic
*The PED always results in a negative number, e.g. price deceases, quantity increases, but for practical reasons we convert the negative number into a positive (we use absolute values) when we are determining the elasticity.
