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3 years ago

2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan

Business

1 answer:

Alona [7]3 years ago

6 0

Answer:

3 years

Explanation:

The computation of the time period is shown below

Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05

$2,000 = $14,688.4 × [1-(1.05)^-n]

1-(1.05)^-n = ($2000 ÷ $14,688.4)

(1.05)^-n = 1 - ($2000 ÷ $14,688.4)

( 1 ÷ 1.05)^n = 0.86383813

Now take the log to the both sides

n × log(1 ÷ 1.05) = log0.86383813

n = log0.86383813 ÷ log (1 ÷ 1.05)

= 3 years

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ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00. What is ABC

Virty [35]

The ABC's dividend yield when the ABC reports dividends per share of $1.40 and net income for the year of $140,000. The current stock price is $14.00 is 10%.

<h3>What is yield?</h3>

The yield on a security is defined as the measurement of the ex-ante instrument to a safety holder in financing.

It is a cardinal part of the return on an investment, with some other being the change in the security's market price.

The formula of calculating the yield is:

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100$

According to the given information,

Dividend Per Share= $1.40,

Net Income= $1,40,000

Current Price= $14

Now, apply the formula in the given formula,

$\text{Dividend Yield} =\dfrac{ \text{Dividend Per Share}}{\text{Current Stock Price}} \times 100\\\\\text{Dividend Yield} =\dfrac{1.40}{\$14}\times 100\\\\\text{Dividend Yield} =10\%$

Therefore, ABC's dividend yield is 10%.

Learn more about yield, refer to:

brainly.com/question/2506978

#SPJ1

5 0

2 years ago

Consider three bonds with 5.50% coupon rates, all making annual coupon payments and all selling at face value. The short-term bo

Liono4ka [1.6K]

Answer:

a. $965.74

b. $939.11

Explanation:

In this question we use the Present value formula i.e shown in the attachment below:

1. Given that,

Future value = $1,000

Rate of interest = 6.5%

NPER = 4 years

PMT = $1,000 × 5.5% = $55

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price would be $965.74

2. Given that,

Future value = $1,000

Rate of interest = 6.5%

NPER = 8 years

PMT = $1,000 × 5.5% = $55

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the price would be $939.11

6 0

3 years ago

An operations manager observes a new production process. Based on production of the first 32 units, the manager estimates that

Leviafan [203]

Answer:

The answer is 17.01 minutes

Explanation:

Given that:

The learning rate (r) = 85% = 0.85

T₃₂= 23.52 minutes

By applying the learning curve formula

Thus,

Tₙ = T₁ nᵇ

Where b represent ln(r)/ln2

b = ln( 0.85)/ln2 = -0.2344

23.55 = T₁ * (32)^-0.2344

T₁ = 23.55 * (32)^0.2344

Now,

T₁₂₈ = T₁ (128)^ - 0.2344

= 23.55 * (32)^0.2344 * (128)^ - 0.2344

=17.01 minutes

3 0

3 years ago

Which of the following is true of brand personalities?

Vilka [71]

Answer:

they are determined by consumer's perceptions, but influenced by the process of branding is answer.

Explanation:

I hope it's helpful!

4 0

2 years ago

In 2014, David Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $2

poizon [28]

Answer:

d. $720,000 asset.

Explanation:

At 2014 David Company reported a loss for 2,400,000 which, for taxes purposes wasn't recognized.

Thus, there is a temporary diffrence in favor of the company,

as is paying more income tax today (the 2,400,000 loss is not recognzied thus, more income taxes are being paid)

and then, will pay less than the accounting net income (latter will pay taxes including this loss, thus less income tax)

This is a deffered income tax asset for: 2,400,000 x 30% = 720,000

tax deffered(assets) 720,000 debit

income tax expense 60,000 debit

cash 780,000 credit

8 0

3 years ago