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Romashka-Z-Leto [24]
3 years ago
8

Prior to February 28, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common st

ock on April 30 for $40 per share. On June 20, it reissued 50 of these shares at $46 per share. On September 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on November 2
Business
1 answer:
liubo4ka [24]3 years ago
3 0

Answer: $2,760

Explanation:

The Treasury account is for a company's own shares that it buys back.

Company purchased 100 shares for $40:

= 100 * 40

= $4,000

June 20, they sold 50 of these shares. It will be deducted from the Treasury account at cost. Balance is:

= 4,000 - (50 * 40)

= $2,000

On September 1, 20 shares at $38 were reissued. Balance in Treasury Account goes to:

= 2,000 + (20 * 38)

= $2,760

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jeka57 [31]

Answer:

Present value = $45,185,606

Explanation:

Data:

number of periods(n) = 17 years

First-year profit = $5 million

Growth rate = 2%

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Present value = ?

Solution:

The present value of the growing annuity can be calculated as follows

Formula:

Let's denote

annual interest rate = x

annual growth rate = y

Present value = First-year profit x (\frac{1-(\frac{1+y}{1+x} )^{n} }{x-y} )

Present value = $5,000,000 x (\frac{1-(\frac{1+0.02}{1+0.1} )^{17} }{0.1-0.02} )

Present value = $5,000,000 x 9.03

Present value = $45,185,606

7 0
3 years ago
Your factory has been offered a contract to produce a part for a new printer. The contract would last for three? years, and your
emmasim [6.3K]

Answer and Explanation:

As per the data given in the question,

                  ($ million)                             ($ million)

Year Cash flows PVF at 8.2% Present value

0         -8.05             1                   -8.05

1          5.08             0.9242   4.70

2          5.08            0.8542           4.34

3           5.08             0.7894   4.01

Net present value                4.99

   

Internal rate of return                  0.40

Net present value = $4.99 million

The project should be accepted

Yes, The IRR rule is agree with NPV.

Please find the attachment for better understanding

3 0
4 years ago
Seedbed preparation <br> activities<br> 1.cleared the area
GREYUIT [131]
Get your supplies lay them out and start your seed preparing with paper towel water and the seeds
6 0
2 years ago
After 15 years of employment in the airline industry, John started his own consulting company to use physical and computer simul
gogolik [260]

Answer:

9%

Explanation:

The first step is to understand the relevant terms in the question

Average Cost of New Capital

The cost of capital represents a required return rate (in percentage)  an organisation or an individual ( in the case of John) will need to make a capital project advantageous, worthwhile or profitable.

In the case of John, the Average Cost of New Capital is 9%

MARR - Minimum Acceptable Rate of Return

This rate also in percentage represents the lowest or minimum rate of return a business or an individual is able to accept in order to start a given project. It is usually based on the risk of the project as well as the alternate benefit foregone if other projects were accepted.

It is also called the Hurdle rate, or the cutoff rate.

John's MARR is 18%

Based on these,

John's Net rate of  return is calculated as follows

Minimum Acceptable Rate of Return - Average Cost of the New Capital

= 18% - 9% = 9%

5 0
3 years ago
Downs, Frey, and Vick formed the DFV general partnership to act as manufacturers' representatives. The partners agreed Downs wou
Flauer [41]

Answer: the partnership would automatically dissolve.

Explanation:

A partnership is referred to as an arrangement that occurs when two or more people come together and join the resources that they've together to form a business and share the profits that they make.

Since the partners agreed to terminate the partnership after the fourth year, if Frey died before the partnership terminated, the partnership would automatically dissolve.

We should note that some of the reasons why a general partnerships will dissolve include:

• Withdrawal of a partner

• Death of a partner

• Bankruptcy

Since Frey is dead, the partnership will be dissolved.

4 0
3 years ago
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