Answer:
Yes she should.
Explanation:
The cash flow analysis is as shown below
Outflow Inflow Balance
Year 0 Total investment (10,350.00) - (10,350.00)
Year 1 Cash inflow - 1,300.00 (9,050.00)
Year 2 Cash inflow - 4,900.00 (4,150.00)
Year 3 Cash inflow - 4,400.00 250.00
Year 4 Cash inflow - 4,100.00 4,350.00
From the cashflow above, the business is in a net income position at the end of the 3rd year. As such, if she assigns a 3-year payback period to this project, she should add toys to her store.
Answer:
are last in line to receive income.
Explanation:
Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.
However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.
Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.
Answer:
$29.70
Explanation:
Retention ratio = 1 - payout ratio
= ( 1 -0.5 )
= 0.5
Growth rate, g = ROE × Retention ratio
= 0.15 × 0.5
= 0.075
= 7.5%
Required return = Risk - free rate + [ Beta × (Market rate- risk-free rate) ]
= 2.5% + 1.44 × (11% - 2.5%)
= 14.74%
Intrinsic value =
=
= 29.69 ≈ $29.70
I would say the subsidies for corn-based sugar will result in more of that sugar being produced and therefore sales should increase and the government should benefit by more tax revenue in the long run to offset the cost of the subsidies.
Answer:
$49,709.34
Explanation:
Payments of fixed amount for a certain period of time is known as an Annuity.
Step 1 : We need to calculate the Net Present Value of the Annuity
<em>Using a financial calculator the following data will need to be captured.</em>
PMT = $4,200
P/Yr = 4
N = 4 x 4 = 12
I = 0.82 %
FV = $ 0
PV = ?
Therefore, the Net Present Value of the Annuity is $49,734.80
Step 2 : Then we calculate the Present Value (Value today of this Annuity)
Since you need to have $49,734.80 in 3 months.
Then, today you require :
FV = $49,734.80
I = 0.82 %
P/Yr = 4
N = 0.25
PMT = $0
PV = ?
therefore, today you require $49,709.34
Conclusion
We are discounting the payments in both stages by the rate of 0.83 % .Therefore, you need to have in your bank account $49,709.34 today to meet your expense needs over the next four years.