Answer:
2.58%
Explanation:
Mathematically, the relationship between the different interest rates using the equation is shown below:
(1+S2)^2=(1+S1)^1*(1+2y1y)
The spot rate in year 2 is the same as the spot rate in year 1 multiplied by the 1-year forward rate beginning in year 2.
S2=2-year rate =2.34%
S1=1-year rate =2.10%
2y1y=one-year interest rate 2 years from now=the unknown
(1+2.34%)^2=(1+2.10%)^1*(1+2y1y)
(1+2y1y)=(1+2.34%)^2/(1+2.10%)^1
2y1y)=(((1+2.34%)^2/(1+2.10%)^1)-1
2y1y=1.025805642-1
2y1y= 2.58%
The formula shows that borrowing or lending for 2 years at 2.34% is the same as borrowing or lending at 2.10% in year and 2.58% forward rate in year 2
Answer:
Conversion Cost Equivalent units FIFO 39, 125
Explanation:
Beginning WIP 5,000 30% completed
transferred units 39,500
ending WIP 4,500 25% completed
<u>The equivalent units will be:</u>
the transferred units
- complete portion for the beginning WIP
+ complete portion of the ending WIP
transferred out 39,500
work in previous period
5,000 x 30% = (1,500)
worked but not complete
4,500 x 25% = <u> 1, 125 </u>
Equivalent units FIFO 39, 125
Answer:
$66,240
Explanation:
Calculation to determine what amount of net assets is with donor restrictions reported in the year the pledge was received
Using this formula
Net Assets=Unconditional pledge amount *Present value of an ordinary annuity
Let plug in the formula
Net Assets=$20,000*3.312
Net Assets=$66,240
Therefore what amount of net assets is with donor restrictions reported in the year the pledge was received will be $66,240
Answer:
It will be regarded as inflow from financing activities
Explanation:
Since we are receiving money it is an inflow of cash. The bank can be regarded as a finance house. Since we are borrowing money and not buying assets this is regarded as a finance activity and this money will need to repaid in the future (finance from outside parties).
Answer:
The answer is 6.17%.
Explanation:
We apply the Dividend Model for solving the questions.
Denote g as the constant dividend growth rate after 3 years which needs to be found.
The principle in the Dividend model is: Current share price = Projected present value of all expected future dividend discounted at company's cost of equity rs =16%.
Thus Current share price = Present value of Dividend paid in Y1 + Present value of Dividend paid in Y2 + Present value of Dividend paid in Y3 + Present value of dividend perpetuity growth after Y3.
=> 51 = (3 x 1.25) / 1.16^1 + (3 x 1.25^2)/ 1.16^2 + (3 x 1.25^3)/1.16^3 + [3 x 1.25^3 x (1+g)]/(0.16-g)/1.16^3 <=> [5.8594 x (1+g)]/(0.16-g)/1.16^3 = 40.5298 <=> [5.8594 x (1+g)]/(0.16-g) = 63.2628 <=> 5.8594 + 5.8594g = 10.1220 - 63.2628g <=> 69.1222g = 4.2626 <=> g = 6.17%.
Thus, the constant rate the stock's dividend expected to grow after Year 3 is 6.17%
