Answer:
$213,210
Explanation:
The computation of the amount needed to pay back is shown below:
= Note payable + interest expense for 2 months + interest expense for 4 months
where,
Note payable is $207,000
Interest expense for 2 months is
= $207,000 × 6% × 2 months ÷ 12 months
= $2,070
The 2 months is calculated from Nov to Dec 31
And, the interest expense for 4 months is
= $207,000 × 6% × 4 months ÷ 12 months
= $4,140
The 4 months is calculated from Dec 31 to May 1
So, the total amount needed is
= $207,000 + $2,070 + $4,140
= $213,210
Answer:
Stock price is $142.13
Explanation:
Given that:
Dividends (D) = $1.74
Dividend grow rate (g) = 25% = 0.25
Required return (R) = 12% = 0.12
Growth rate period (T) = 11 years
Perpetuity (p) = 6% = 0.06
Stock price = [D(1 + g) / (R-g)] {1 -[(1 + g) / (1 + R)]^T}+ [(1 + g)/(1 + R)]^T[D(1 + p)/(R-p)]
Substituting values:
Stock price = [1.74(1 + 0.25) / (0.12-0.25)] {1 -[(1 + 0.25) / (1 + 0.12)]¹¹}+ [(1 + 0.25)/(1 + 0.12)]¹¹[1.74(1 + 0.06)/(0.12 - 0.06)]
Stock price = [(-16.73) × (-2.34)] + [(3.35) ×(30.74)] = 39.1482 + 102.979 = $142.13
Stock price is $142.13
Answer:
The static budget variance of revenues is 36000 Unfavorable
Explanation:
Lincoln Corporation
Static Budget Variances
Actual Budgeted Static Budget
Units sold Units sold Variance
42,000 units 39,000 units
Sales Price $ 12 $ 12
Revenues 504000 468000 36000 Unfavorable
Variable costs $ 168,000 $ 158,000 10,000 Unfavorable
Fixed costs $ 46, 000 $ 48,000 2000 Favorable
The Static Budget Variance is calculated by subtracting the budgeted amounts from the actual amounts.
In a static budget the actual amounts are not changed for different activity levels. Instead the actual is compared with the budgeted so that exact variance is obtained for an organization.
Answer:
<em>The body</em>
Explanation:
The body is <em>the longest part of a document or letter</em> and is generally split into three sub-categories: introduction, key material and description.
The introductory section specifies the letter's purpose.
The key material contains all the specific information needed and does not have any fixed duration specifications.
The last section sums up the information given, reaffirms the purpose of the document.
