Answer:
You need to save $4,012.45 each year
Explanation:
Pertiuty in 20 years is $50,000.
So the amount must be in account after 30 years saving to enough for above pertiuty is calculated as below:
= $50000/(1+8%)+ $50000/(1+8%)^2+......+$50000/(1+8%)^20
= $50,000 * Annuity Factor ( 1-20 years) of 8%
=$50000*9.818
= $490,907
To have $490,907 (FV) in account after 30 years (tenor), now you have save an amount each year (PMT) calculated as below:
$490,907 = PMT*(1+8%)^30+....PMT*(1+8%)^2 + PMT*(1+8%)
= PMT * Discount Factor ( 1-30 years) of 8%
$490,907 = PMT * 122.346
-> PMT = $490,907/ 122.346
= $4,012.45
Answer:
11.58%
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of preferred stock = (Annual dividend) ÷ {Price of preferred stock per share × (1 - flotation cost)}
= ($11) ÷ {($100 × (1 - 0.05)}
= $11 ÷ $95
= 11.58%
Simply we divide the annual dividend by the price of preferred stock per share after considering the flotation cost so that the correct cost of preferred stock can be computed
Answer:
The correct answer is c,alienating local suppliers
Explanation:
The presence of strong negotiator who is an expert in the field of sourcing is an advantage inherent in centralized purchasing,hence option A is not correct.
Cost and quality control implies that sourcing in large quantity gives the buyer entity a strong bargaining power and it is able to procure at the lowest price possible.Whereas,the control relates to the goods been received at central location before being dispatched to the department requiring it,implies that all items can be properly checked and confirmed fit for purpose.As result option is wrong as well.
The only odd option is C,as centralized purchasing is not aimed at alienating local suppliers since it is not global sourcing
Answer:
Current value from operations is $534.71 million.
Explanation:
The value from operations can be calculated by discounting back the free cash flow of the firm. The first three year's FCF will be discounted back using the WACC and when the growth rate o FCF becomes constant after Year 3, the terminal value will be calculated and discounted back too.
The current value from operations = FCF1 / (1+WACC) + FCF2 / (1+WACC)² + FCF3 / (1+WACC)³ + [FCF3 * (1+g) / WACC - g] / (1+WACC)³
Current value from operations = 20 / (1+0.1) + 25 / (1+0.1)² + 30 / (1+0.1)³ + [30 * (1+0.05) / (0.1 - 0.05)] / (1+0.1)³
Current value from operations = $534.71 million
Answer:
$19,300
Explanation:
Calculation to determine the amount of job costs added to Work in Process Inventory during October
Using this formula
October Job costs=Raw material+Direct labour+Overhead
Let plug in the formula
October Job costs=$2,200+$5,700+($5,700*2)
October Job costs=$2,200+$5,700+$11,400
October Job costs=$19,300
Therefore the amount of job costs added to Work in Process Inventory during October is $19,300
