True or False: There is a government mandated outline that you must use for a business plan.

Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received

Artemon [7]

Answer:

a. $173

Explanation:

The computation of the amount of interest earned in five years is shown below;

But before that following calculations need to be done

As we know that

Simple interest = Present value × rate of interest × time period

= $2,500 × 8% × 5

= $1,000

Now the future value is

Future value = Present value × (1 + rate of interest)^number of years

= $2,500 ×(1 + 8%)^5

= $2,500 × 1.4693280768

= $3,673

Now the compound interest is

Compound interest = Future value - Present value

= $3,673 - $2,500

= $1,173

Now interest on interest is

Interest on interest = Compound interest - Simple interest

= $1,173 - $1,000

= $173

3 0

2 years ago

Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of

Bezzdna [24]

Answer:

The value of the stock is $28.57

Explanation:

Data provided in the question:

Dividend paid at the end of the year, D1 = $2.00 per share

Increase in dividend = $1.50 per share

Growth rate, g = 5% = 0.05

Required rate of return = 12% = 0.12

Now,

Price with constant Dividend Growth model = D1 ÷ ( r - g )

= $2 ÷ ( 0.12 - 0.05 )

= $28.57

Hence,

The value of the stock is $28.57

4 0

2 years ago

The Sun Company manufactures a special line of graphic tubing items. The company estimates it will sell 75,000 units of this ite

Mashutka [201]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The company estimates it will sell 75,000 units of this item in 2008. The beginning finished goods inventory contains 20,000 units. The target for each year's ending inventory is 10,000 units.

1) <u>To calculate the budgeted units of production, we need to sum the sales of the period to the desired ending inventory and subtract the beginning inventory.</u>

Production budget= 75,000 + 10,000 - 20,000= 65,000 units

2)

Each unit requires five feet of plastic tubing. The tubing inventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three month's production.

First, we need to calculate the ending inventory at years end:

ending inventory= (75,000/12)*3= 18,750 units

Purchases= production for the period + ending inventory - beginning inventory

Purchases= 65,000*5 + 18,750*5 - 70,000= 348,750 feet

7 0

3 years ago

Which of the following is not a legal right of a debtor?

Akimi4 [234]

Debtors are granted some measures or rights. The option that is not a legal right of a debtor is right to declare bankruptcy.

A lot of creditors often do not obey simple rules, and thus uses some kind of deceptive or intimidating actions so as to recover money they are owed.

A lot of creditors often uses threats of violence in trying to recover debt.

In the State of California’s Rosenthal Act, one, as a debtor, is known to have the right to be free from harassing letters and calls from creditors and collection agencies because of unpaid debt.

it is known to stop creditors from constantly disturbing one at home or sending threatening letters on a regular basis.

Learn more about Debtor from

brainly.com/question/25731182

7 0

1 year ago

Consider the following income statement for Kroger Inc. (all figures in $ Millions):

Darina [25.2K]

Answer:

D) $179 million

Explanation:

The computation of the interest tax shield for the year 2006 is shown below:

= Interest expense in the year 2006 × tax rate

= $510 million × 35%

= $178.50 million

Simply we multiply the interest expense with the tax rate for the particular year so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

7 0

2 years ago