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TEA [102]
3 years ago
13

Determine the future value of $21,000 under each of the following sets of assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1,

FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.):
Annual Rate Period Invested Interest Compounded Future Value
(a) 10% 8 years Semiannually $ _____
(b) 12% 4 years Quarterly $ _____
(c) 36% 25 months Monthly $ _____
Business
1 answer:
Marat540 [252]3 years ago
7 0

Answer:

(a) $43,656.90

(b) $33,698.70

(c) $43,967.70

Explanation:

Future Value of annuity shall be:

(a) 10% for 8 years, Semiannually compounded

In this since the interest is compounded semiannually, the effective interest rate = 10/2 = 5%

Future Value of $1 in 8 years with 10% interest compounded semiannually = 2.0789

Value of $21,000 = $21,000 \times 2.0789 = $43,656.90

(b) 12% for 4 years, Quarterly Compounded

In this since the interest is compounded quarterly, that is 4 times in a year, effective interest rate = 12/4 = 3%

Future value of $1 in 4 years with 12% interest compounded quarterly = 1.6047

Value of $21,000 = $21,000 \times 1.6047 = $33,698.70

(c) 36% 25 months, Monthly

In this since the interest is compounded monthly effective interest rate = 36/12 = 3%

Therefore, Future Value of $1 in 25 months @36% compounded monthly = $2.0937

Value of $21,000 = $21,000 \times 2.0937 = $43,967.70

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Answer:

sharing information across the organization.

Explanation:

ERP software systems allow employees accurate and timely access to real time information about the company's areas that they work with. This can optimize how the company operates and increase cooperation between different areas. Also unnecessary operations and delays are eliminated.

Before, salespeople had to continuously check with inventory department about what products were available and ready to be sold, which caused delays and time is money.

6 0
3 years ago
Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. B
hammer [34]

Answer:

Yes. Contract formed on June 18.

Explanation:

A contract is an agreement between two interest parties that has rights and obligations attached to them.

The fact that Brian mails a letter of acceptance on June 18 entails that an agreement has been reached.

Thus the date of the Contract is June 18.

7 0
3 years ago
Hettenhouse Company's perpetual preferred stock sells for $102.50 per share, and it pays a $9.50 annual dividend. If the company
solniwko [45]

Answer:

The company's cost of preferred stock for use in calculating the WACC is 9.65%

Explanation:

For computing the cost of preferred stock, the following formula should be used which is shown below

= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)

where,

Flotation cost = 1- rate

                      = 1- 4% = 0.96

= $9.50 ÷ ($102.50 × 0.96)

= $9.50 ÷ $98.4

= 9.65%

The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.

Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%

5 0
3 years ago
The government of India has made killing Bengal tigers illegal, but poaching continues. In the list below, indicate which statem
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Answer: A, C and D.

Explanation:

With the options given above, options A, C and D are reasons why the ban on killing Bengal tigers hasn't been successful. When the punishment for killing Bengal tigers is not severe, people won't mind killing the tigers since they know they won't be severely punished for their action. Also, when the enforcement of the poaching law is weak and the potential profit from the illegal poaching is higher than the risk of getting caught, people will continue to kill the tigers.

For the law to be effective, there must be strict punishment for people who go against the law made.

6 0
3 years ago
The dividend policy of Berkshire Gardens Inc. can be represented by a gradual adjustment to a target dividend payout ratio. Last
emmasim [6.3K]

Answer:

$1

Explanation:

The computation of the dividend per share is shown below:

Given that

Earning per share for this year =4

Target Payout Ratio = 25%

Paid dividend per share = $0.60 per share

Based on the above information, the dividend per share is

= Earning per share  × Payout Ratio

= 4 × 25%

= 1

Therefore, Dividend per share is 1

We simply multiplied the earning per share with the payout ratio so that the dividend per share could come

5 0
3 years ago
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