Answer:
(a) $50,980.35
(b) $5,129.90
(c) $2,400
(d) $50,980.35
(e) $5,129.90
(f) $2,400
Explanation:
A constant payment for a specified period is called annuity. The future value of the annuity can be calculated using a required rate of return.
Formula for Future value of annuity is
F = P * ([1 + I]^N - 1 )/I
P =Payment amount
I = interest rate
N = Number of periods
(a) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(b) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(c) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
(d) $1,000 per year for 16 years at 14%
F = $1,000 x ([1 + 14%]^16 - 1 )/14%
F = $50,980.35
(e) $500 per year for 8 years at 7%
F = $500 x ([1 + 7%]^8 - 1 )/7%
F = $5,129.90
(f) $600 per year for 4 years at 0%.
F = $600 x 4
F = $2,400
A source document
This document, when coupled with a bill of lading and/or packing list, can be used to invoice a customer, which in turn generates a sale transaction. Supplier invoice. This is a source document that supports the issuance of a cash, check, or electronic payment to a supplier.
Answer:
The best estimate of the company’s cost of equity is 12%
Explanation:
Estimate of the company’s cost of equity = (Required Return as per Capital Asset Pricing Model + Cost of Equity) / 2
Required Return as per Capital Asset Pricing Model = Risk Free rate + Market Risk Premium * Beta
= 4.9 % + ( 6% * 1.2)
= 0.049 + 0.06 * 1.2
= 0.049 + 0.072
= 0.1210
= 12.10%
Cost of Equity = (Expected Dividend/Price) + Growth Rate
= [( $ 1.30 * 1.08) / $ 36] + 8%
= 0.039 + 0.08
= 0.1190
= 11.90%
The best estimate of the company’s cost of equity = (12.10 % + 11.90 % )/ 2
= 24% / 2
= 12%
Hence, the best estimate of the company’s cost of equity is 12%
The one who will most likely have a higher BAC is the father because a person who is older will most likely have the higher BAC, as the father is already seventy five and much older to his son, he will be therefore have a higher BAC compared to his son.
Answer:
A. It will stay the same.
Explanation:
The formula to compute the dividend yield is shown below:
= (Annual dividend ÷ market price) × 100
Since in the question, it is given that the expected dividend is growing at the constant growth rate i.e 6.50%, so the expected dividend yield will remain the same in the future.
As it shows a direct relationship between the growth rate and the dividend yield plus the market price is growing at a steady rate
