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agasfer [191]
3 years ago
5

One year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today.

Today, it is adding another $15,000 to this account. The company plans on making a final deposit of $10,000 to the account one year from today. How much cash will be available when the company is ready to buy the equipment assuming an interest rate of 5.5%?
Business
1 answer:
Lyrx [107]3 years ago
4 0

Answer:

Total FV= $46,008.31

Explanation:

Giving the following information:

Deposit 1= $12,000

Deposit 2= $15,000

Deposit 3= $10,000

Interest rate= 0.055

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

FV= PV*(1+i)^n

FV1= 12,000*(1.055^5)= 15,683.53

FV2= 15,000*(1.055^4)= 18,582.37

FV3= 10,000*(1.055^3)= 11,742.41

Total FV= $46,008.31

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Michelle Townsend owns stock in National Computers. Based on information in its annual report, National Computers reported after
bixtya [17]

Answer:

a. $1.80

b. 18.33 times

Explanation:

The computation of the earning per share is shown below:

a. Earning per share = (Net income after tax) ÷ (Number of shares)

                               = ($9,216,000) ÷ (5,120,000 shares)

                               = $1.80

b. And, the Price-earnings ratio = (Market price per share) ÷ (Earning per share)

= $33 ÷ $1.80

= 18.33 times

6 0
2 years ago
The Callie Company has provided the following information: Operating expenses were $244,000; Cost of goods sold was $378,000; Ne
creativ13 [48]

Answer:

Callie's Gross Profit is $562000

Explanation:

Gross profit is the profit earned by a business after deducting the costs associated with producing or selling its goods (for manufacturing and trading businesses) or the costs associated with providing the services (for service businesses) from the net revenue.

It is the profit from the trading section of the business before deducting the operating and financing expenses of the business and before adding any other income.

The gross profit is simply calculated as follows,

Gross Profit = Net Revenue - Cost of Goods Sold

Callie's gross profit = 940000 - 378000

Callie's Gross Profit = 562000

6 0
3 years ago
Online, immediate status updates from Airlines about their flights is an example of e-commerce's effect of:
olga2289 [7]

Answer:

D) Homogenization of time and routinization

Explanation:

E-commerce software has changed a highly customized activity (determining where and how an individual could fly to) and reduced it to a simple routine. Customers can check their flight status whenever they want. They do not have to wait to contact a travel agent or even wait for a travel agency to open. Therefore time has been homogenized and transactions routinized.

7 0
3 years ago
Suppose it costs $2,500 to buy a defibrillator. Find the expected value of owning a defibrillator if there is a 4% probability t
Blizzard [7]

Answer:

yeah

Explanation:

3 0
3 years ago
Serendipity Inc. is re-evaluating its debt level. Its current capital structure consists of 80% debt and 20% common equity, its
Charra [1.4K]

Answer:

Using the current capital structure

Ke = Rf + β(Risk premium)

Ke = 5 + 1.60(6)

Ke = 5 + 9.60

Ke = 14.60

Weighted cost of equity

= 14.60(20/100)

= 2.92%

Using the new debt-equity ratio

Ke = 5 + 1.60(6)

Ke = 5 +  9.6

Ke  = 14.60%

Weighted cost of equity

Ke = 14.60(60/100)

Ke = 8.76%

Difference in cost of equity

= 2.92% - 8.76%

= -5.8%

Explanation:

There is need to calculate the cost of equity based on capital asset pricing model where Rf  represents risk-free rate, Rp denotes risk-premium and β refers to beta. Then, we will calculate the weighted cost of equity by multiplying cost of equity by the proportion of equity in the capital structure. We will also calculate the new weighted cost of equity by multiplying the cost of equity the new proportion of equity in the capital structure. Finally, we will deduct the new weighted cost of equity from the old weighted cost of equity.  

5 0
3 years ago
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