Answer:
$1,590.00
Explanation:
Martha has $10,000 saved one. She will join college after 5 years.
Tuition for one year is $10,000. Inflation rate is 3%
The applicable formula is A = P ( 1+ r) ^n
Where A = amount after 5 years
P= principal amount $10,000
r= interest rate 3% of 0.03
n = 5 years
A= $10,000( 1+ 0.03) ^5
A = $10,000 ( 1.03)^5
A= $10,000 x 1.159
A= 11,590.00
Marthe already has $10,000. She will need 11,590.00 - $10,000 more
=$1,590.00
Answer: 12.5%
Explanation:
Amount that will be raised with Equity = 65% * 5,700,000 = $3,705,000
This is more than the retained earnings so new equity will have to be issued at cost of 16%
Amount raised by debt = 35% * 5,700,000 = $1,995,000
Less than $2 million so cost of debt is 10%
WACC = cost of equity * weight of equity + weight of debt * cost of debt * ( 1 - tax rate)
= (16% * 65% ) + (35% * 10% * (1 - 40% tax))
= 12.5%
Answer: (a) 22.50
Explanation:
Payment severance (PV) = 375,000,
Payment = -35,000,
Interest rate = 7.5%
FV = 0.
Evaluating these numbers using a calculator to solve for number of periods will give us the result as 22.5 years.
They will be more accepting of losses and failures if they are involved from the start.
Answer: Option D
<u>Explanation:</u>
Decision Making is the process where certain alternatives are set by the people who are involved in making a decision about achieving or reaching at a particular thing.
The people who are going to be affected by the result, it is very important to involve them in making the decisions so that if any failure or loss occurs during the working, the people accept it. If they are not involved in the process, they might not take the result very positively.
Answer:
See explanation section
Explanation:
1. Debit Cash $17,000
Credit Service revenue (music) $17,000
<em>Note: The academy receives cash by providing music services to the students.</em>
2. Debit Prepaid Insurance $4,200
Credit Cash $4,200
<em>Note: The academy paid cash in advance to purchase insurance policy.</em>
3. Debit Musical Equipment $20,000
Credit Cash $20,000
<em>Note: The academy paid cash for acquiring musical equipment.</em>
4. Debit Cash $30,000
Credit Notes payable $30,000
<em>Note: The academy borrowed cash by signing a notes from the bank.</em>
