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deff fn [24]
3 years ago
14

An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $400 at the end of Year 5, and $50

0 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value
Business
1 answer:
il63 [147K]3 years ago
7 0

Answer:

Present value=Cash flows*Present value of discounting factor(rate%,time period)

=50/1.07+50/1.07^2+50/1.07^3+250/1.07^4+400/1.07^5+600/1.07^6

=$1006.94(Approx)

Future value=1006.94*(1.07)^6

=$1511.14(Approx).

Explanation:

We use the formula:

A=P(1+r/100)^n

where

A=future value

P=present value

r=rate of interest

n=time period.

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Brickhouse is expected to pay a dividend of $3.15 and $2.46 over the next two years, respectively. After that, the company is ex
fenix001 [56]

Answer: $32.70

Explanation:

According to the dividend discount model, the value of the stock today is the present value of the dividends to be paid plus the present value of the value of the dividend from when the company starts maintaining a stable growth rate which in this question in year 2.

= (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))

Value at year 2 = Year 3 dividend / ( required return - growth rate)

= ( Year 2 dividend * (1 + g)) / ( required return - growth rate)

= (2.46* ( 1 + 0.039)) / ( 0.113 - 0.039)

= $34.54

Value today = (Year 1 Dividend / ( 1 + r)) + (Year 2 Dividend / ( 1 + r)²) + (value at year 2 / ( r - g))

= 3.15/1.113 + 2.46/1.113² + 34.54/1.113²

= 2.83 + 1.99 + 27.88

= $32.70

7 0
3 years ago
Actual sales volume for a period is 5,000 units. budgeted sales volume is 4,500. actual selling price per unit is $15 and budget
olganol [36]

Actual sales volume for a period is 5,000 units. budgeted sales volume is 4,500. actual selling price per unit is $15 and budget price per unit is $15. 75. the sales price variance is $3,750

Sales Price Variance:

The term "sales price variation" describes the discrepancy between a company's anticipated price for a good or service and the amount that was actually paid for it.

Reduced competition, higher sales price realization, general inflation, a sudden rise in product demand, etc. are a few potential reasons for a favorable sales price variance.

Sales Price Variance = (Actual Sale Price – Standard Sale Price) × Actual Quantity Sold.

Calculation of the Sales Price Variance :-

Sales Price Variance = ( Actual price - Budgeted price)× Actual quantity

Sales Price Variance = ( $15 - $15.75) * 5,000

Sales Price Variance = $3,750 Unfavorable.

Learn more about Sales Price Variance here

brainly.com/question/22229628

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8 0
2 years ago
michael's estimated current monthly take-home pay is $4,500. his total existing monthly disability benefits are $2,950. michael'
jolli1 [7]

Michael's estimated current monthly take-home pay is $4,500. His total existing monthly disability benefits are $2,950. Michael's estimated monthly disability benefits needed are: $1,550.

<h3>What conditions are considered disability?</h3>
  • According to the law, a physical or mental impairment that can be expected to cause death or that has lasted or is anticipated to last for a continuous period of at least 12 months qualifies as a disability if it prevents the person from engaging in any substantial gainful activity (SGA).
  • Any additional benefits you received while receiving Disability Allowance or Blind Pension can be kept if you continue to work. However, your higher income may have an impact on how much Rent Supplement you receive. In general, when you participate in an employment scheme, you can keep any additional benefits you were receiving.
  • Ask yourself where you stand in relation to your full retirement age if you're wondering whether disability would pay more. Disability levels will be higher if you fall below it. Social Security will be higher if you are over it.

To learn more about : Disability  benefits

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3 0
1 year ago
Selecting the first ART for launch is an important step when creating an implementation plan. Which factors should be considered
zepelin [54]

Based on business activities, the factor that should be considered when deciding which ART to launch first is "<u>Organizational change impact</u>."

<h3>Organizational change impact</h3>

The Organizational change impact is a change impact from the firm's business activities. These impacts could be any competitive advantage, business opportunities, working conditions, etc.

Therefore, to determine which ART to launch first, firms should consider the Organizational change impact to set the tone for further ART launch.

Hence, in this case, it is concluded that the correct answer is "<u>Organizational change impact."</u>

Learn more about Organizational change impact here: brainly.com/question/6235800

3 0
3 years ago
Place the steps for finding the EOQ in a quantity discount model with variable H in the correct order.
ira [324]

The steps for finding the EOQ in a quantity discount model with variable H are:

  1. The optimal point is the quantity that yields the lowest cost
  2. Start with the lowest price
  3. If the minimum point is feasible
  4. Otherwise, compare total costs

What is the Economic Order Quantity(EOQ)?

The Economic Order Quantity is the ideal quantity of units a company should purchase to meet demand while minimizing inventory, costs such as holding costs, shortage costs, and order costs.

The economic order quantity formula assumes that demand, ordering and holding costs all remain constant.

Learn more about Economic Order Quantity here:

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4 0
1 year ago
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