Answer:
The investment of $1000 that yields 12% interest per year would become $2000 in 6 years' time as shown by the calculation below
Explanation:
In determining the how long it would take for the investment to become $2000, the future value formula stated below is used.
FV=PV*(1+r)^N
FV is the $2000
PV, present value is $1000
r is the rate of return at 12%
2000=1000*(1+0.12)^N
2000/1000=1.12^N
2=1.12^N
by taking log of both sides the equation becomes
ln 2=N ln 1.12
N= ln 2/ln 1.12
N=6.116255374
approximately N is 6 years
Answer:
Option A Combination of rising productivity elsewhere and US inflationary policies
Explanation:
The reason is that the it talks about the inflation control policies which is one of the key factor that affects inflation. Furthermore it also talks about the increase in productivity which means that the product demand is rising and so the demand of the currency would rise when the greater number of goods would be exported to different countries.
Weighted average cost of capital = [Cost of equity * Proportion of equity] +[Cost of preferred stock * Proportion of preferred stock] +[Cost of debt *(1-tax rate)*proportion of debt]
Cost of equity =0.14
Proportion of equity = 75/150 = 3/6
Cost of preferred stock = 0.08
Proportion of preferred stock = 25/150 = 1/6
Cost of debt = 0.06
Tax rate = 0.34
Proportion of debt = 50/150 = 2/6
Weighted average cost of capital =[0.14*3/6]+[0.08*1/6]+[0.06 (1-0.34)*2/6]
Weighted average cost of capital = 0.07+0.013+0.0128 = 0.0958 = 9.58%
Answer: The correct answer is "stop-buy order with a specified purchase price of $55 per share.".
Explanation: An investor sold a stock short a year ago for $50 per share. The stock's price is currently $52 per share. If the investor is unwilling to accept a loss of more than $5 per share on the short sale transaction, she could place a <u>stop-buy order with a specified purchase price of $55 per share.</u>
<u>In this way there would be a difference of $ 5 between $ 50 and the specific purchase price of $ 55 and placing a stop-buy order on that price per share so as not to lose more than $ 5 per share.</u>
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Answer:
Analysis of the Big Bart line discontinuity
Opportunity Costs :
Sales ($201,000)
Savings :
Variable Costs $175,000
Fixed Costs ($30,700 - $19,800) $10,900
Financial Advantage / (Disadvantage) ($15,100)
Conclusion :
Do not eliminate / discontinue Big Bart line.
Explanation:
The results show that closing Big Bart line results in a contribution towards fixed cost being lost to the amount of $15,100. Therefore leaving the entire company in a worse off position.
