Answer:
Computation of contribution to retirement fund
Annual payment that the investor wants to receive after retirement = 13000
Number of years after retirement = 15
Interest rate = 0.11
Value of the fund at 12th year (Use Present Value Formula) = -93,481.30
Years remaining to retirement = 10
Interest rate = 0.09
Annual contribution upto retirement (Use PMT Formula) = -14,566.27
Answer:
$0.9
Explanation:
Data provided in the question:
Earnings after taxes = $108,750
Interest expense for the year = $20,000
Preferred dividends paid = $18,750
Common dividends paid = $30,000
Common stock outstanding = 100,000 shares
Now,
Earning available on common stock
= Earnings after taxes - Preferred dividends paid
= $108,750 - $18,750
= $90,000
Therefore,
Earnings per share on the common stock
= Earning available on common stock ÷ Common stock outstanding
= $90,000 ÷ 100,000
= $0.9
Answer:
$33.44
Explanation:
The computation of the intrinsic value of the share is shown below:
= Next year dividend ÷ (Required rate of return - growth rate)
where,
Next year dividend is
= $2.16 + $2.16 × 4.50%
= $2.16 + $0.0972
= $2.2572
The required rate of return is 11.25%
And, the growth rate is 4.50%
So, the intrinsic value is
= ($2.2572) ÷ (11.25% - 4.50)
= $33.44
Answer:
Net account receivable
2021 $8,085
2022 $5,335
Explanation:
Calculation for the net account receivable
2021 2022
Total account receivable 14,700 9,700
(33,200-18,500=14,700)
(48,200-38,500=9,700)
Less: Allowance for doubtful accounts (6,615) (4,365)
(45%*14,700=6,615)
(45%*9,700=4,365)
Net account receivable 8,085 5,335
(14,700-6,615=8,085)
(9,700-4,365=5,335)
Therefore Net account receivable will be :
2021 $8,085
2022 $5,335
