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serg [7]
3 years ago
6

Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the com

pany agreed to pay rent of $12,000 per month for the next 9 years with the first payment due today. If the APR is 6.36 percent compounded monthly, what is the value of the payments today?
Business
1 answer:
mestny [16]3 years ago
6 0

Answer:

The value of the payments today = $990,072.84

Explanation:

jenny:

rate =0.0636/12

n=9*12

pmt=12000

=PV(0.0636/12,9*12,12000,0,1)

=$990,072.84

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BT Alex Brown Analysts are evaluating Energen (NYSE: EGN) for possible inclusion in a small-cap oriented portfolio. EGN is a div
Lady bird [3.3K]

Answer:

The correct option is $1.14

Explanation:

D1=D0*(1+g)

D1 is year 1 dividend

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D1=$0.54*(1+15%)

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We need to apply the discount factor to each of the dividends,the discount factor is 1/(1+r)^n

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present value of year 1 dividend=$0.62100*1/(1+11%)^1

present value of year 1 dividend=$0.559459459

Present value of year 2=$0.71415*1/(1+11%)^2

Present value of year 2=$0.579620161

Total value present values=$0.559459459 +$0.579620161

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A. usually have a lower interest rate than long-term debt.

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Basically, when a small business owner (entrepreneur) or start-up needs to finance a temporal personal or working capital requirements but isn't eligible to apply for a line of credit from a bank; he or she can obtain a short-term bank loan.

Short-term bank loans usually have a lower interest rate than long-term debt and are frequently used by large corporations as a significant component of capital structure.

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Identify the type of costs that would be considered incremental cost for a decision to close stores. (You may select more than o
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The incremental costs that can be deduced include the cost for materials, overhead, and labor that are associated with the actual closing process.

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