Answer:
The present value of terminal value is $ 863,689.48
Explanation:
Terminal value=Cash flows at third year*(1+g)/WACC-g
cash flows at the third year is $64,000
g is the growth rate of net cash flows which is 2% in perpetuity
WACC is 8%
Terminal value=$64,000*(1+2%)/(8%-2%)
=$64000*1.02/0.06
=$ 1,088,000.00
The present value of terminal=terminal value*discount factor in year 3
discount factor in year=1/(1+8%)^3=0.793832241
Present value of terminal cash flow=1,088,000.00 *0.79383224
=$ 863,689.48
<span>By implementing inappropriate or improper goals in a given company, but throwing resources and capital at it in order to achieve it, this will ultimately lead to a waste of resources on behalf of the company. A failure to implement effective goals would counter-act on the impact of resources that are being allocated. The correct answer is HIGH EFFICIENCY / LOW EFFECTIVENESS. </span>
Answer:
The weighted average interest rate that Colgate faced on its short-term borrowings in 2013 was:
2.2%.
Explanation:
On page 62 of its 10-K annual report for the fiscal year ended December 31, 2013, it specifically reported that "the weighted-average interest rate on short-term borrowings of $13 in 2013 and $54 in 2012 included in Notes and loans payable in the Consolidated Balance Sheets as of December 31, 2013 and 2012 was 2.2% and 1.0%, respectively." To calculate the weighted-average interest rate, we multiply each loan amount by its interest rate to obtain the "per loan weight factor." Then add the per loan weight factors together. Add the loan amounts together. Divide the "total per loan weight factor" by the "total loan amount," and then multiply by 100 to calculate the weighted average.
Could be cause of trade , if you have land it is also good for crops which is production
the interest rate is 3%
Ben should choose account X because, since it uses compound interest, it would pay interest on interest. Simple interest only pays on the original balance.
so your answer will be B it would pay interest on interest
