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3 years ago

The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

Business

1 answer:

ratelena [41]3 years ago

6 0

Answer:

c. $31,888

Explanation:

The formula for calculating the present value is as below

Pv = FV x { 1/ (1+ r)^n }

Pv = $40,000 x { 1/ (1 +0.12)^2

Pv =$40,000 x (1/1.2544)

Pv =$40,000 x 0.7971938

Pv =$31,887.50

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Portman Industries just paid a dividend of $1.68 per share. The company expects the coming year to be very profitable, and its d

alisha [4.7K]

Answer:

What is the expected dividend yield for Portman's stock today?

d. 6.40%

Suppose Portman is considering issuing 62,500 new shares at a price of $26.78 per share. If the new shares are sold to outside investors, by how much will Judy's investment in Portman Industries be diluted on a per-share basis?

a. $0.52 per share

Thus, Judy's investment will be diluted, and Judy will experience a total loss of $0.52 x 7,500 = $3,900

Explanation:

cost of equity = Re = risk free rate of return + (Beta × market premium) = 5% + (0.90 x 6%) = 10.4%

dividend in one year = $1.68 x 120% = $2.016

intrinsic stock price = $2.016 / (10.4% - 4%) = $31.50

expected dividend yield = dividend / stock price = $2.016 / $31.50 = 6.4%

Judy's loss per share = ($31.50 - $26.78) x (62,500 / 562,500) = $0.5244

7 0

3 years ago

Machinery was purchased for $460000 on January 1, 2022. Freight charges amounted to $15000 and there was a cost of $34000 for bu

Andrews [41]

Answer:

The amount of accumulated depreciation at December 31, 2023 = $88,800.

Explanation:

Determining the actual acquisition cost.

The actual acquisition cost = Purchase value + freight charges + Installation costs.

The actual acquisition cost = 460,000 + 15,000 + 34,000.

The actual acquisition cost = $509,000.

Determining the depreciable cost.

The depreciable cost = acquisition cost - Salvage value.

The depreciable cost = 509,000 - 65000.

The depreciable cost = $444,000.

Determining annual depreciation expense.

Annual depreciation expense = depreciable cost / number of years.

Annual depreciation expense = 444,000 / 10.

Annual depreciation expense = 44,400.

Determining the accumulated depreciation .

The accumulated depreciation = annual depreciation expense × number of years.

The accumulated depreciation = 44,400 × 2.

The amount of accumulated depreciation at December 31, 2023 = $88,800.

6 0

3 years ago

Edwin is the HR manager at a customer care unit with approximately 1,000 employees. He wants to statistically analyze the servic

Gre4nikov [31]

Full Question:

Edwin is the HR manager at a customer care unit with approximately 1,000 employees. He wants to statistically analyze the service data to make the recruitment process more effective by identifying desirable and undesirable qualities of employees. Edwin observes a high positive correlation between the employees' ability to adapt and the turnaround time. However, he decides to avoid using this criterion when recruiting employees. Which of the following, if true, would MOST strengthen this decision to avoid the criterion

A) The statistical significance of the correlation was found to be sixty percent.

B) Another trait, honesty, had a higher correlation coefficient than employees' ability to adapt.

C) The sample size used by Edwin was significantly larger than what was required.

D) Multiple regressions were observed among the variables used for the analysis.

Answer:

The correct answer here is A)

Explanation:

The key to decision making using statistical research is Statistical Significance. This means that a statistically significant observation is probably true. In this case, the statistical significance of his findings is 60%.

Cheers!

7 0

3 years ago

Nancy owns 10% interest in ABC Corporation and 20% of the outstanding shares of XYZ Corporation. Her son Nick owns 60% of the ou

harkovskaia [24]

Answer:

20%

Explanation:

Ownership of XYZ Corp. in ABC Partnership = 100% of ABC Partnership * Percentage owned by XYZ Corp.

= 100% * 50%

= 50%

Ownership of Nancy = Interest in ABC Partnership + Ownership of XYZ Corp. in ABC Partnership * Interest of Nancy In XYZ Corp.

= 10% + (50% * 20%)

= 10% + 10% = 20%

5 0

3 years ago

What term was coined by Goldman Sachs in 2001 to describe the fastest growing market economies?

julsineya [31]

BRICS is an acronym for the economies of Brazil, Russia, India, China, and South Africa combined, which in 2001 were the fastest growing major economies in the world.

3 0

3 years ago