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kotykmax [81]
3 years ago
15

On January 1, 2017, Ann Price loaned $187,825 to Joe Kiger. A zero-interest-bearing note (face amount, $250,000) was exchanged s

olely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of interest expense should Joe Kiger recognize in 2017? Select one:
a. $25,000
b. $75,000
c. $56,350
d. $18,783
Business
1 answer:
SVEN [57.7K]3 years ago
5 0

Answer:

Option D is correct.

<u>Interest expense in 2017= $18,783</u>

Explanation:

Interest expense in 2017 = 187825*10% = $18782.5( Approx $18,783)  

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The cost performance index (CPI): a. can be used to estimate the projected cost of completing the project. b. indicates that the
Evgen [1.6K]

Answer:

The correct answer is letter "A": can be used to estimate the projected cost of completing the project.

Explanation:

The Cost Performance Index or CPI measures the projected cost of work completed compared to the current cost spent. The CPI represents a ratio of earned value to actual cost. If the CPI is greater than one, the project is under budget. When the CPI equals one the planned and actual costs are equal. If the CPI is higher than one, the project is over budget.

3 0
3 years ago
A(n) ______ business is any firm that engages in cross-border trade or investment.
tamaranim1 [39]

An international  business is any firm that engages in cross-border trade or investment.

What is cross-border?

A cross border trade or investment is a trade or investment involving two or more countries where the parent company based in one country establishes another business in another country.

International businesses which are also known as the multinational companies transcends beyond one country since diversification of investments and trade is key to enhancing overall business performance

Find out more about international business on:brainly.com/question/14690606

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4 0
2 years ago
First to answer gets Brainliest
igor_vitrenko [27]
You need to go into excel and make it there
6 0
3 years ago
Consider the following information for Evenflow Power Co., Debt: 5,000 6.5 percent coupon bonds outstanding, $1,000 par value, 1
melamori03 [73]

Answer:

<em>WACC 10.07765%</em>

Explanation:

We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020

This is solved using excel or a financial calculator

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 32.50

time 34

<em>rate 0.03153274</em>

32.5 \times \frac{1-(1+0.03153274)^{-34} }{0.0315327401919093} = PV\\

PV $672.0015

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   34.00

<em> rate  0.03153274</em>

\frac{1000}{(1 + 0.03153274)^{34} } = PV  

PV   348.00

PV c $672.0015

PV m  $347.9985

Total $1,020.0000

<u>annual cost of debt:</u>

0.031532 x 2 = 0.063064 = 6.31%

<u>debt outstanding:</u>

5,000 bonds x $ 1,000  x 102/100 = 5,100,000

<u>equity</u>:

105,000 shares x $59 each = 6,195,000

For  the equity we solve using CAMP

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.09

premium market = (market rate - risk free) 0.085

beta(non diversifiable risk) = 1.17

Ke= 0.05 + 1.17 (0.085)

<u>Ke 0.14945</u>

Now we solve for the WACC

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

D  5,100,000

E  6,195,000

V  11,295,000

Equity weight 0.5485

Debt Weight 0.4515

Ke 0.14945

Kd 0.0631

t 0.34

WACC = 0.14945(0.5485) + 0.0631(1-0.34)(0.4515)

<em>WACC 10.07765%</em>

7 0
3 years ago
Your Competitive Intelligence team is predicting that the Chester Company will invest in adding capacity to their Cell product t
creativ13 [48]

Question Completion:

Figures in thousands (000):

Product Segment    Capacity Next Round

Dug             Core                1200

Dune     Core                1450

Beetle     Core                1040

Bat             Core                1050

New     Core                100

Adam     Core               1200

Answer:

Chester Company

Competitive Intelligence Report:

Based on the increased 10% capacity, the industry can produce 6,644 units.

Explanation:

a) Data and Calculations:

Product Segment    Capacity Next Round    Increased Capacity (1.1)

Dug             Core                1,200                    1,320

Dune     Core                1,450                    1,595

Beetle     Core                1,040                     1,144

Bat             Core                1,050                    1,155

New     Core                   100                        110

Adam     Core               1,200                    1,320

Total                                     6,040                   6,644

b) Each of the core segment products can be increased by the increased capacity factor of 1.10 (1 + i), where "i" is the rate of capacity increase.  Alternatively, the total capacity in the current period can be increased by the increased capacity factor.  Either way, produces the same result of an increased capacity of 6,644 units that the industry can produce.  The result also shows that the options provided in the question are not correct.  They must have been based on other assumptions.

7 0
3 years ago
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