Answer:
D1 = $1.12
D2 = $1.25
D3 = $1.40
D4 = $1.48
D5 = $1.55
Explanation:
The formula to calculate dividends for next years is:
Where D_n is successive year dividend
D_(n-1) is previous year dividend
g is the growth rate (given as 12% = 12/100 = 0.12)
Initial dividend is $1, D_0
So, lets calculate the dividends for 5 years:
Year 1:
D1 = 1(1+0.12) = 1(1.12) = $1.12
Year 2:
D2 = D1(1+g) = 1.12(1.12) = 1.2544 = $1.2544
Year 3:
D3 = D2(1+g) = 1.2544(1.12) = 1.404928 = $1.404928
Year 4:
D4 = D3(1+g) = 1.404928(1+0.05)1.404924(1.05) = $1.4751744
Year 5:
D5 = D4(1+g) = 1.4751744(1.05) = $1.54893312
Answer:
Variance (Unfavorable) (NZD 340,000)
Explanation:
Budget Variance using exchange rate projected at the time of budget
Budget Actual Variance Exc. Rate Variance in NZD
MYR MYR
Revenue 12000000 11000000 -1000000 0.34 -340000
Expenses 9000000 9000000 0 0.34 0
Profit 3000000 2000000 -1000000 0.34 -340000
Answer:
The net present value for each option is given below.
(1) $70,000 cash immediately
NPV = 70,000 * 1 = $ 70,000
(2) $24,000 cash immediately and a six-period annuity of $8,100 beginning one year from today, or
NPV = (24,000*1) + (8,100 *(1-((1+7%)^-6)/7%)) = $ 62,609
(3) a six-period annuity of $14,500 beginning one year from today
NPV = (14,500 *(1-((1+7%)^-6)/7%)) = $ 69,115
Answer:
sale is $4000
Explanation:
given data
margin ratio = 25%
sales = $260,000
operating profit = $66,000
solution
we get here Break even sales that is express as
Break even sales = Fixed expense ÷ Contribution Margin Ratio ...........1
put here value
$260,000 = Fixed Expenses ÷ 25%
Fixed Expenses = $65000
so here we consider sale is = x
we know net income is express as
Net Income = Contribution - Fixed Expenses ................2
so Contribution = 25% x
put value in equation 2
25% x - $65000 = $66,000
solve it we get
x = 4000
so sale is $4000
