Answer:
P5 = 10.41
Explanation:
To calculate the stock value with dividends for the fifth year the following formula would be used:
The first Dividend Paid.- G = Growth Rate.
- R = Required Return.
$1.15
Growth Rate = 12.3%
R = 0.75%
P5 = ?
- Substituting the values in the formula
Answer:
Federal funds rate
Explanation:
Federal funds rate is the interest rate at which commercial banks borrow and lend their excess reserves to each other overnight.
Answer:
I strongly believe that the requirement is to calculate the price of the bond.
The bond is worth $ 70,824,063.03
Explanation:
It is noteworthy that a rational would-be investor would pay for a bond a price that reflects the cash flows receivable from the bonds in future discounted to today's terms.
The future cash flows comprise of the semi-annual coupon interest of $4 million(10%/2 *$80 million) for 20 periods as well as the repayment of the principal $80 million at the end of period 20
Since coupon is paid every six months, the coupon would be twenty times over the life of the bond(paid twice a year for 10 years)
To bring the cash inflows today's term, we multiply them them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 12% and N is the relevant the cash flow is received.
The discounting is done in attached spreadsheet leading $ 70,824,063.03 present value today.
Answer:
The journal entry to record this should be:;
July 1, Year 202x, cash received as deferred revenue
Dr Cash 7,500
Cr Deferred revenue 7,500
Explanation:
Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them.
In this case, the adjusting entry for accrued revenue on December 31 should be:
December 31, year 202x, accrued revenue
Dr Deferred revenue 1,875
Cr Service revenue 1,875
Answer:
Yes, I would recommend those sleeping 9 hours to consider sleeping 6 or 7 hours.
Explanation:
First of all, the sample of the study is very representative because the amount of observations is quite big: 1.1 million!. This means that the results of the study have a very low margin of error, and therefore, can be trusted.
Secondly, the calculations are simple, but correct. The easiest way to determine the mortality rate is to divide the number of people who died by the number of people who are still living, and who belong to the same sample.
