Help help pelsss I need to pass thanks I’ll give points for honestly

Suppose that an income producing property is expected to yield cash flows for the owner of $150,000 in each of the next five yea

vivado [14]

Answer:

$1,449,635.50

Explanation:

The computation of the value of the property today is shown below:

First the present value for 5 years is

Year Cash flows Discount factor Present value

1 $150,000 0.925925926 $138,888.89

2 $150,000 0.85733882 $128,600.82

3 $150,000 0.793832241 $119,074.84

4 $150,000 0.735029853 $110,254.48

5 $150,000 0.680583197 $102,087.48

Total present value $598,906.51

The discount factor is

= 1 ÷ (1 + rate)^years

And, the formula of future value is

Future value = Present value × (1 + rate)^number of years

$1,250,000 = Present value × (1 + 0.08)^5

$1,250,000 = Present value × 1.469328077

So, the present value is $850,729

Now the today value of the property is

= $598,906.51 + $850,729

= $1,449,635.50

7 0

4 years ago

The Club Auto Parts Company has just recently been organized. It is expected to experience no growth for the next 2 years as it

Ratling [72]

Answer:

P1=$8.43

Explanation:

$D1= 0.5\\D2=0.5\\D3=D2(1+g3) = 0.5(1.05)=0.525\\D4=D3(1+g4) = 0.5(1.05)(1.1) =0.5775\\$

The value of the stock is equal to the present value of all cash-flows expected from holding the stock. At the end of year 1, the value of the stock is found by calculating the present value of the remaining dividends i.e D2, D3, D4, D5 etc till infinity.

Therefore price equals $P1=\frac{D2}{1+ke} + \frac{D3}{(1+ke)^{2} } +\frac{D4}{(ke-g)(1+ke)^{3} }$

given the values of Dividends calculated above and ke= 15% :

$P1=\frac{0.5}{1.15^{1} } +\frac{0.525}{1.15^{2}} +\frac{0.5775}{(0.15-0.1)(1.15^{3} } = $8.43$

7 0

3 years ago

One bag of oranges is sold for $6.00 to a company that turns them into juice which is sold to consumers for $12.00. Another bag

Sedaia [141]

Answer:

19 is added to the gdp

Explanation:

6 (bag of oranges) + 6(bag of oranges) + (12-6)(juice) + (7-6)(bag of oranges) = 19 is added to the gdp

In this case I'm using the income approach to calculate GDP, which includes the income earned by wages to labor (not present), rent by land (you may say that the original bag of oranges), the return on capital (interest, not present),and entrepreneur’s profits (juice and grocery store)

6 0

3 years ago

In the current year, Hermanson Corporation reported net income of $240,000, paid dividends of $25,000 on common stock, and $40,0

ExtremeBDS [4]

Answer:

Return on Common Equity: 12.5%

Explanation:

$\frac{income - preferred \: \: stock \: \: dividends}{common \: \: equity}$

equity income

240,000 - 40,000 = 200,000

average common equity:

700,000 + 900,000 = 1,600,000

return on common equity:

200,000 / 1,600,000 = 0.125 = 12.5%

3 0

3 years ago

Has the death of the watch been greatly exaggerated? Apple gets into the game

Marianna [84]

Although we do not have access to the chapter, we can provide a generalized answer in that people can still be motivated to buy watches today as an accessory from a fashion standpoint.

<h3>What are some motivations today for purchasing a watch?</h3>

In this digital age, watches are no longer purchased mainly for their functional aspects given that smartphones can more than suffice. However, as all marketing for watches will prove, the principal motivation for watches today is fashion. Watches now serve as an accessory to complete any outfit, and as is the case with diamonds, a more expensive watch will occupy the role of a lucrative accessory, drawing the desired attention.

Therefore, we can confirm that people can still be motivated to buy watches today as an accessory from a fashion standpoint.

To learn more about fashion visit:

brainly.com/question/12946936?referrer=searchResults

7 0

3 years ago