Answer:
Fair price =$635.23
Explanation:
<em>Th fair price that he should be willing to pay is the present value of the $1000 expected in 5 years time.</em>
<em>Present value (PV) is the worth today if a future amount is discounted at a particular rate of interest.</em>
PV = FV × (1+r)^(-n)
PV - present value = ?
FV -Future value - 1000,
r- discount rate - 9.5%,
n - future date - 5
PV = 1,000 × (1.0950^(-5)
PV = 1,000 × 0.6352
PV =635.2276653
Fair price =$635.23
Answer:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
Explanation:
Preparation of What adjusting Journal entry should the company make at the end of the current year to record its estimated bad debts expense
Based on the information given the adjusting Journal entry that the company should make at the end of the current year to record its estimated bad debts expense will be:
Dr Bad Debt Expense $44,000
Cr Allowance for Doubtful Accounts $44,000
(Net Sales 2,200,000*Estimated 2.0% of net sales)
(Being to record estimated bad debts expense)
B.only new information affects stock prices.
Answer:
$788.35
Explanation:
In this question, we use the present value formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Future value = $1,000
Rate of interest = 14% ÷ 4 quarters = 3.5%
NPER = 4 × 4 quarter = 16 years
PMT = $1,000 × 7% ÷ 4 quarters = $17.50
The formula is shown below:
= PV(Rate;NPER;PMT;FV;type)
So, after solving this, the answer would be $788.35
