The 2-year discount factor is 0.92. The present value of $1 to be received in year 2 is $ 0.92.
Given :
Amount receivable is $ 1.00
2 year discount factor is 0.92
Present value 1*0.92 = $ 0.92
The process of raising money or capital for any form of spending is referred to as finance. It involves directing different sources of funding, such as credit, loans, and investment money, to the businesses that can use them most effectively.
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Answer: See explanation
Explanation:
The flotation cost adjustment that must be added to its cost of retained earnings will be calculated thus:
= Expected dividend / [Current price × (1 - Floatation cost)] + Expected growth rate
= 2.00/[20.00 × (1 - 4.5%)] + 4.2%
= 2.00 /[20.00 × (1 - 0.045)] + 0.042
= 2.00 / (20.00 × 0.955) + 0.042
= (2.00/19.10) + 0.042
= 0.104712 + 0.042
= 0.146712
New cost of equity = 14.67%
You didn't give the cost of equity calculated without the flotation adjustment. Let's assume that this is maybe 11%, the floatation on adjustment factor = 14.67% - 11% = 3.67%
Answer:
$55,054
Explanation:
Calculation for how much must the real estate sell for
Sales price =($50,000 + 1,200)/(100% - 7%)
Sales price=$51,200/0.93
Sales price =$55,053.76
Sales price =$55,054 (Approximately)
Therefore the amount that the real estate must sell for if the selling costs include a 7% commission and $1,200 in other expenses will be $55,054
Answer:
1 $12.80
2 $16.10
3 $13.00
4 $9.20
5 $15.90
Explanation:
The unit value of inventory is to be valued the lower of cost price and net realizable value.
Cost is the original purchase price while the net realizable value is the estimated selling price less of costs to complete and costs to sell as computed in the attached file.
Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
