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Aleksandr [31]
3 years ago
10

You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annuall

y, how much will you have at the end of four years
Business
1 answer:
vekshin13 years ago
6 0

Answer:

FV= $6,124.46

Explanation:

Giving the following information:

You plan to save $1,400 for the next four years, beginning now, to pay for a vacation. If you can invest it at 6 percent annually,

Annual deposit= $1,400

Number of periods= 4 years

Interest rate= 6%

<u>To calculate the future value, we need to use the following formula:</u>

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1,400*[(1.06^4) - 1]} / 0.06

FV= $6,124.46

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When meeting a CEO whom he hoped to win over as a new client, James, dressed in an Armani suit, introduced himself from across h
Alexxandr [17]

Answer: Wearing high status clothing

   

Explanation: In simple words, Non verbal communication refers to the act of making any remark or statement without using language. It could be done by using body posture, dressing sense or eye contact etc.

In the given case, James tried to persuade his clients by showing that he belongs to the high class of the society and maintains a high status. He did so by wearing the expensive clothes. Such persuation will result in perception that James is hardworking and trusted.

Hence from the above we can conclude that the correct option is B.

5 0
3 years ago
Read 2 more answers
The common stock of Detroit Engines has a beta of 1.34 and a standard deviation of 11.4 percent. The market rate of return is 11
stealth61 [152]

Answer:

The firm's cost of equity is C. 14.05 percent

Explanation:

Hi, we need to use the following formula in order to find the cost of equity of this firm.

r(e)=rf+beta(rm-rf)

Where:

r(e) = Cost of equity

rf = risk free rate

rm = Market rate of return

Everything should look like this.

r(e)=0.04+1.34(0.115-0.04)=0.1405

So, this firm´s cost of equity is 14.05%

Best of luck

6 0
3 years ago
The next dividend payment by Savitz, Inc., will be $1.44 per share. The dividends are anticipated to maintain a growth rate of 6
defon

Answer:

Dividend yield = 5.54%

The expected capital gains yield = 6%

Explanation:

Next Dividend (D1) = $1.44

Growth rate (g) = 6%

Required return (Ke) = 6% + 5.54% = 11.54%

Ke-g = 11.54% - 6% = 5.54%

Price = D1 / (ke / g) = 1.44 /  5.54% = $25.9927 = $26

a. Dividend yield = D1 / Price = $1.44 / $26

Dividend yield = 0.05538

Dividend yield = 0.0554

Dividend yield = 5.54%

b.  The expected capital gains yield = Required return (Ke) - Dividend yield

The expected capital gains yield = 11.54% - 5.54%

The expected capital gains yield = 6%

4 0
3 years ago
According to GAAP, the amount of bad debt expense can be estimated by: A. Only the percent of sales method. B. Only the percent
yarga [219]

Answer:

E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.

Explanation:

The bad debt is an expense that is to be shown on the debit side of the income statement. It refers to the amount which is not collectible by the company due to partie bankruptcy

It can be estimated by the following methods using the Generally accepeted accounting principles (GAAP)

1. percent of accounts receivable method,

2. percent of sales method

3. the aging of accounts receivable method

Hence, the correct option is E.

7 0
3 years ago
Baker Corp. is required by a debt agreement to maintain a current ratio of at least 2.5, and Baker's current ratio now is 3. Bak
Naddika [18.5K]

Answer:

The maximum that should be expand short time debts  and inventories is $ 1,666,667.

Explanation:

First the amount of current liabilities must be known:

Current Ratio = Current Asset / Current Liabilities  

3 = 15,000,000 / X  

X = 15,000,000 / 3

X= 5,000,000

To know how much to expand short time debts  and inventories in the formula of the current ratio, to the amount of current assets and current liabilities must add an amount such that the result is 2.5.  

(15,000,000 + x) / (5,000,000 + x) = 2.5

(15,000,000 + x) = 2.5 * (5,000,000 + x)

 15,000,000 + x = (2.5 * 5,000,000) + (2.5 x)

 15,000,000 + x = 12,500,000 + 2.5 x

 15,000,000 - 12,500,000 = 2.5 x – x

  2,500,000 / 1.5  = x

  1,666,667 = x

 So the maximum that should be expand short time debts  and inventories is $ 1,666,667.

3 0
3 years ago
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