Answer:
The total long-term liabilities reported on the balance sheet are $3,451,000.
Explanation:
<u>Details Amount ($)</u>
Bonds Payable 9% 3,000,000
Premium on Bonds Payable 98,000
Notes Payable (5 yr.) 166,000
Mortgage Payable (200,000 - 13,000) <u> 187,000 </u>
The total long-term liabilities <u> 3,451,000 </u>
Answer:
1. Increases in demand will increase both the interest rate and the total amount of borrowing and lending. Decreases in demand will decrease both the interest rate and the total amount of borrowing and lending.
Explanation:
Answer:
a.
PV = $25000
b.
PV one year from today = $27000
Explanation:
a.
A perpetuity is a series of cash flows that are constant in nature, occur after equal interval of time and are for an infinite period of time. A growing perpetuity is a perpetuity that grows at a proportionate rate for an infinite period of time. The formula to calculate the present value of a growing perpetuity is,
PV = CF1 / r - g
Where,
- CF1 is the cash flow in the coming period or period 1
- r is the required rate of return or interest rate
- g is the growth rate of perpetuity
PV = 1000 / (0.12 - 0.08)
PV = $25000
b.
After the first payment is made, the value of the growing perpetuity can be calculated using CF2. The value that will come will be the value of perpetuity 1 year from today.
PV one year from today = CF2 / (r - g)
PV one year from today = 1000 * (1+0.08) / (0.12 - 0.08)
PV one year from today = $27000
According to the provisions in the Contract to Buy and Sell Real Estate, if a broker has an interest-bearing trust account, the: interest may accrue to a nonprofit affordable housing fund.
<u>Explanation:</u>
When funds are deposited to a interest bearing trust account then interest can be obtained for those deposited funds. The annual percentage yield will be very smaller amount for this type of account. The amount of money will be paid to the account holder in annual basis which is called APY.
The interest that is paid to the account beneficiary is called trust account. When a broker has this type of account, according to the Contract to Buy and Sell Real Estate provisions, the interest may accrue to nonprofit affordable housing fund.
Answer:
$202,216.54 million
Explanation:
FCF₁ = $7,360 million
FCF₂ = $8,846.72 million
FCF₃ = $10,633.76 million
FCF₄ = $10,910.24 million and will continue to grow at 2.46%
we must first determine the terminal value at year 3:
terminal value = $10,910.24 million / (7.38% - 2.46%) = $221,752.85 million
firm's current total value = $7,360 million / 1.0738 + $8,846.72 million / 1.0738² + $10,633.76 million / 1.0738³ + $221,752.85 / 1.0738³ = $6,854.16 + $7,672.48 + $8,588.49 + $179,101.41 = $202,216.54