Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,075 2 1,210 3 1,340 4 1,420 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4

Answers

Answer 1

Answer:

the future value of the cash flow in year 4 is $5,632.73

Explanation:

The computation of the future value of the cash flow in year 4 is as follows:

= $1,075 × (1.08^3) + $1,210 × (1.08^2) + $1,340 × (1.08^1) + $1,420 ×(1.08^0)

= $1,354.19 + $1,411.34 + $1,447.20 + $1,420  

= $5,632.73

Hence, the future value of the cash flow in year 4 is $5,632.73

The same is to be considered and relevant  


Related Questions

Normative and positive statements
The following table contains statements that provide some analysis of policies that address taxes. Categorize each of these statements as either positive or normative.
Statement Positive Normative
Taxes are too high.
In some circumstances, if taxes are lowered,
government revenues actually increase.
It is immoral for a government to redistribute money
from one person to another.
When the government increases taxes, rates of
tax evasion increase.

Answers

Answer:

Normative

Positive

Normative

Positive

Explanation:

Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.  

For example, the statement , In some circumstances, if taxes are lowered,

government revenues actually increase, can be tested and it has it basis in economic theory

Normative economics is based value judgements, opinions and perspectives. For example, the statement - taxes are too high - is based on opinion. To some it is too high while to others it would be too low

The exercise value is also called the strike price, but this term is generally used when discussing convertibles rather than financial options. True False

Answers

Answer:

False

Explanation:

The strike price is used at the time of trading of the options, while on the other hand the option that could be exercised is when take place when there is a delivery of the stock. Basically it means that the stock that can be predicted value and it is set by the seller of the contract. Also it is to be termed as the convertible bonds, but it should be more used for the option trading

Therefore the given statement is false

Consider the assembly line of a laptop computer. The line consists of 11 stations and operates at a cycle time of 1.50 minutes/unit. Their most error-prone operation is step 2. There is no inventory between the stations, because this is a machine-paced line. Final inspection happens at station 11.

Required:
What would be the information turnaround time for a defect made at station 2?

Answers

Answer: 13.5 minutes

Explanation:

Information turnaround time = Cycle time * Number of stations after error is made.

The most error-prone operation is step 2 so assuming an error happens there, there will be 9 more stations in the line.

Information turnaround time will therefore be:

= 1.50 * 9

= 13.5 minutes

Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Receivable Accounts Payable Common Stock Equipment Dividends How many of the above accounts have a normal debit balance

Answers

Answer:

Explanation:

Cash, utilities expense, salaries expense, accounts receivable, equipment, dividends

A not-for-profit art museum that has elected to capitalize its art collection receives a donation of a rare piece of Native-American art. The donor paid $10,000 for the piece several years ago. Today the piece has an estimated value of $50,000. What entry should the museum make upon receipt of this donation

Answers

Answer and Explanation:

No  journal entry is required as the art museum has been elected so it is not capitalized also the value is increased i.e. from $10,000 to $50,000 so we should not capitalized it

So for this there is no requirement of passing the journal enry

 Hence, the same is to be considered

The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity

Answers

Answer and Explanation:

The computation of the nominal, periodic, and effective interest rates for this investment opportunity is shown below:

The Nominal rate is 4.40%

The Periodic rate is = 4.40% ÷ 4 = 1.10%

And,  

The Effective annual rate is

= (1+1.10%)^4 - 1

= 4.473%

hence, the same is relevant

true or false
2. Determining the producers preferences of products are
important when thinking of starting a business.​

Answers

Explanation:

The answer is True!!!!!!!

"Stock in Daenerys Industries has a beta of 0.73. The market risk premium is 10 percent, and T-bills are currently yielding 5 percent. The company's most recent dividend was $1.6 per share, and dividends are expected to grow at a 5.5 percent annual rate indefinitely. If the stock sells for $35 per share, what is your best estimate of the company's cost of equity? Use the average from CAPM and Dividend Growth Model calculations."

Answers

Answer:

CAPM = 12.30%

Dividend Growth Model=  10.32%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market premium)

5% + (0.73 x 10%) = 12.30%

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

$35 = $1.6 x (1.055) / (r - 0.055)

r = 1.688 / 35 + 0.055 = 0.1032 = 10.32%

Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $550 per month plus $104 per job plus $20 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 12 jobs and 121 meals, but the actual activity was 7 jobs and 126 meals. The actual cost for catering supplies in December was $3,550. The spending variance for catering supplies in December would be closest to:

Answers

Answer:

$148 F

Explanation:

Calculation to determine what The spending variance for catering supplies in December would be closest to:

Flexible budget $3,698

[$550 + ($104 * 7) + ($20 * 121)]

Less Actual results $3,550

Spending variance $148 F

Therefore The spending variance for catering supplies in December would be closest to: 148 F

____________ is the process of identifying and assessing the volume and sentiment of what is being said about a company, individual, product, or brand. Digital marketing Visual analytics

Answers

Answer:

d) Social media monitoring

Explanation:

Social media monitoring includes the tracking of brand i.e. online and the responses also. You should check and keep your brand on the top of the message prior it become viral for the reason i.e. not right. Also it would help in maintaining the positive brand between the consumers and influencers

So, as per the given situation, it is a social media monitoring

On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising payment of $120,000 in five years. The applicable effective interest rate is 7%.

Required:
What amount of sales revenue would Millipede recognize on April 19, 2021, for the Hartwood transaction?

Answers

Answer:

$85,558.34

Explanation:

The Transaction Price will be the Present Value of the amount to be received in 5 years.

We can simply calculate the Present Value (PV) using a financial calculator as follows :

FV= - $120,000

I = 7 %

N = 5

P/YR = 1

PMT = $0

PV = ?

Entering the data as above gives a Present (PV) as $85,558.34

therefore,

Millipede will recognize an  amount of sales revenue of $85,558.34

A major U.S. manufacturer of children's toys believes its main competitive advantage lies in its continuing the creation of innovative toys and games. The company is facing increasing competition on price, and it is strongly considering outsourcing to offshore firms as a means of reducing costs. The LAST function this firm should consider outsourcing is: Group of answer choices research and development. operations. supply-chain management. distribution.

Answers

Answer:

research and development

Explanation:

Since in the given situation, it is mentioned that the company faced the increased in the competition and also it considered an outsourcing in order to offshore the firm so that the cost can be minimized so here the last function the firm should considered outsourcing is the research and development as there is the outsourcing so there would be the research and development also it deals with innovation & introduction of new products & services

Slipper Company sold a productive asset, a machine, for cash. It originally cost Slipper $29,000. The accumulated depreciation at the date of disposal was $24,000. A gain on the disposal of $2,900 was reported. What was the asset's selling price

Answers

Answer:

$7,900 = selling price

Explanation:

Giving the following information:

Original cost= $29,000

Accumulated depreciation= $24,000

Gain= $2,900

First, we will determine the book value:

Book value= original cost - accumulated depreciation

Book value= 29,000 - 24,000 = $5,000

Now, the selling price:

Gain/loss= selling price - book value

2,900= selling price - 5,000

$7,900 = selling price

The MOST common method of distributing funds provided by a construction loan is a:Single lump sum of money at the closing of the loanSingle lump sum of money at the end of the construction project to reimburse the developer for the project's expenses and profitSeries of payments throughout the construction project to reimburse the developer for costs incurred since the previous paymentSeries of payments throughout the construction project to reimburse the developer for anticipated expenses in the upcoming period

Answers

Answer:

Series of payments throughout the construction project to reimburse the developer for costs incurred since the previous payment

Explanation:

The common method for allocating the funds that are given by the construction loan is that the payment series via the constuction project in order to reimbursed it for the developer as the cost is spend because of the last payment made

Therefore as per the given situtation, the third option is correct

Consider the bond (newly issued, issued on Nov 2013) for a country A: Face value $10 million Coupon rate 4.3% If this bond is purchased (in April 2014) at $9.02 million, instead of $10 million, the yield would be: Group of answer choices same as 4.3% greater than 4.3% less than 4.3%

Answers

Answer: greater than 4.3%

Explanation:

Given that

Face Value = $10 million

Current Price = $9.02 million

Coupon Rate = 4.3%

Coupon Payment  per annum = $10million  x 4.3% = $430,000 annually

Current yield = Annual Coupon Payment ÷ Current price of the bond

Current Yield = $430,000 ÷ 9,020,000 = 0.0476 =4.76% which is greater than 4.3%

The rate that a company must pay to obtain funds from creditors and stockholders is known as the Select one: a. hurdle rate. b. cost of capital. c. cutoff rate. d. All of these answers are correct.

Answers

Answer:

B)cost of capital.

Explanation:

In economics as well as accounting, the cost of capital can be regarded as

cost of funds of a company i.e debt and equity. From investor's point of view it can be regarded as rate of return required on a company existing securities portfolio, and this is utilized I evaluation of new projects of a company. It should be noted that the rate that a company must pay to obtain funds from creditors and stockholders is known as cost of capital..

You just won the lottery! As your prize you will receive $1,200 a month for 100 months starting today. If you can earn 8% on your money, what is this prize worth to you today

Answers

Answer: $87,380.23

Explanation: n = 100

I/Y = 8%/12

PMT = 1,200

AVP = 1,200 × (1-(1/(1+0.08/12)^100))/(0.08/12) = 1,200 × 72.816858 = 87,380.23

The prize worth to a person today is $87,380.23 approx, if the person wins a lottery.

What is the present value?

A financial calculation known as present value, commonly referred to as discounted value, assesses the value of a future sum of money or stream of payments in today's dollars after accounting for interest and inflation.

It contrasts the purchasing power of one dollar today with that of one dollar in the future, present value\ is computed by the following formula:

[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\[/tex]

whereas:

A= Annuity

i= Interest rate

n= Number of periods

m= Periodicity

Computation of present value of the price:

Apply the given values in (1),

[tex]\text{Present Value} = \rm A\times {\dfrac{1-(1+\dfrac{i}{m})^n^m}{\dfrac{i}{m}}\\\text{Present Value} = $1,200\times {\dfrac{1-(1+\dfrac{0.08}{12})^(8.33 \times 12)}{\dfrac{0.08}{12}}[/tex]

Present Value = $87,380.23 approx.

Therefore, the prize worth to a person today is $87,380.23 approx.

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On April 1, 2019, Waterway Industries purchased new machinery for $480000. The machinery has an estimated useful life of five years, and depreciation is computed by the sum-of-the-years'-digits method. The accumulated depreciation on this machinery at March 31, 2021, should be

Answers

Answer:

$288,000

Explanation:

Sum-of-the-years'-digits method provide for higher depreciation to be charged early in the life of the asset with lower depreciation in the later year.

Sum of digits = 5 + 4 + 3 +2 +1 = 15

2020

Depreciation = 5 / 15 x $480000

                       = $160,000

2021

Depreciation = 4 / 15 x $480000

                       = $128,000

therefore,

Accumulated depreciation = $160,000 + $128,000 = $288,000

thus

The accumulated depreciation on this machinery at March 31, 2021, should be $288,000.

Which of the following best describes the "invisible hand" concept? Group of answer choices Ample regulation of business by the government will maximize the public's best interests. The market system works best when resources are free to move from one use to another. The problem of scarcity can best be overcome in a system of mixed capitalism. Self-interest in a market system will automatically promote the public interest as well

Answers

Answer:

Self-interest in a market system will automatically promote the public interest as well.

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.

A free-enterprise system also referred to as capitalism or free market can be defined as a type of economy in which prices, products and services are being determined by the market rather than the government. Thus, a free-enterprise system is devoid (free) of government regulations, interference or control because the market (enterprises) are the ones who are saddled with the responsibility of determining the market forces.

Simply stated, a free-enterprise system is a type of economy that is completely driven by demand and supply of goods and services.

The "invisible hand" concept asserts that the self-interest by producers and suppliers of resources in a market system will automatically promote the public interest as well.

This ultimately implies that, public and private interest will always coincide assuming there exist competition in a free market system.

In conclusion, the invincible hand concept is a metaphorical description of the unforeseen forces that typically moves a free market system or economy.

The best description of the "invisible hand" concept is: "Self-interest in a market system will automatically promote the public interest as well."

What is the concept of "invisible hand"?

The concept of the "invisible hand" is often associated with Adam Smith, a renowned economist and philosopher. According to Smith's theory, individuals pursuing their own self-interest in a competitive market will unintentionally benefit society as a whole.

Through the pursuit of profit and self-gain, individuals are motivated to produce goods and services that meet the needs and desires of others in the market. As a result, the market system, when left to its own devices, is believed to allocate resources efficiently and maximize overall societal welfare.

This concept implies that government intervention and regulation may not be necessary for the market to function optimally. Instead, the "invisible hand" suggests that individual self-interest, guided by market forces such as supply and demand, will naturally lead to desirable outcomes for society.

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Which of the following is a common role adjustment for a couple during the empty nest stage? *

Answers

Zhjakakakakaoao snaps
I can’t see the question, but I would say that they have to adjust from being a parent to taking care of their spouse etc?

Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through
50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the
answer to question 45, and so on:
Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . . $100,000
Contributed Capital in excess of par value, Preferred Stock . . 250,000
Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . . . . . . . . . 50,000
Contributed Capital in excess of par value, Common Stock . .450,000
Total Contributed Capital . . . . . . . . . . . . $ 850,000
Retained Earnings . . . . . . . . . . . . . . . . . 150,000
Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000
45. The average issue price per share of preferred stock must have been:
A) $20.00
B) $50.00
C) $70.00
D) $35.00
E) $45.00
46. Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006?
A) Preferred $20,000, Common $0
B) Preferred $8,000, Common $12,000
C) Preferred $18,000, Common $2,000
D) Preferred $14,000, Common $6,000
E) Preferred $12,000, Common $8,000
47. Marcy Company issues 2,000 shares of common stock in exchange for a building, with a market value of $100,000.
The journal entry to record the exchange will cause Total Contributed Capital to:________
A) increase by $10,000
B) increase by $100,000
C) increase by $90,000
D) increase by $80,000
E) remain unchanged
48. Marcy Company declared and issued a 15% common stock dividend on January 1, 2005, when the market price of their common stock was $12 per share. The journal entry to record the stock dividend will:_____________
A) debit Retained Earnings by $18,000.
B) credit Common Stock Dividend Distributable, $15,000
C) credit Contributed Capital in excess of par, Common Stock, $21,000
D) credit Common Stock Dividend Distributable, $10,500
E) credit Contributed Capital in excess of par, Common Stock, $7,500
49. Marcy Company declared a 100% common stock dividend on January 1, 2005, when the market price of the stock was $7.50. The entry to record this dividend will:_________
A) debit Retained Earnings,$100,000
B) credit Common Stock Dividend Distributable,$50,000
C) credit Contributed Capital in excess of par, Common Stock, $25,000
D) credit Common Stock Dividend Distributable, $100,000
E) Since this is considered a stock split, no journal entry is made
50. On January 1, 2005, Marcy Company purchased 1,000 shares of its own common stock for $22,000. On February 1, 2005, they sold 600 of these shares for $25 per share, and on March 1, 2005, they sold the remaining 400 shares for
$15 per share. The journal entry required on March 1 will include:_______
A) credit Contributed Capital, Treasury Stock, $1,800
B) debit Retained Earnings for $1,800
C) debit Retained Earnings for $2,800
D) debit Contributed Capital, Treasury Stock, $2,800
E) debit Contributed Capital, Treasury Stock, $1,80040.

Answers

Answer:

Marcy Company

45. The average issue price per share of preferred stock must have been:

C) $70.00

46. The dividends paid to preferred and common stockholders in 2006 are:

B) Preferred $8,000, Common $12,000

47. The journal entry to record the exchange will cause Total Contributed Capital to:________

C) increase by $90,000

48. The journal entry to record the stock dividend will:_____________

A) debit Retained Earnings by $18,000.

49. The entry to record this dividend will:_________

B) credit Common Stock Dividend Distributable,$50,000

C) credit Contributed Capital in excess of par, Common Stock, $25,000

50. The journal entry required on March 1 will include:

Debit Cash $6,000

Credit Treasury stock $2,000

Credit Contributed Capital in excess of par value $4,000

Explanation:

a) Data and Calculations:

Preferred Stock:

6% cumulative, $20 par value, 10,000 shares authorized,

5,000 shares issued and outstanding . . $100,000

Contributed Capital in excess of par value, Preferred Stock . . 250,000

Common Stock:

$5 par value, 20,000 shares authorized,

10,000 shares issued and outstanding. . . . . . . . . . 50,000

Contributed Capital in excess of par value, Common Stock . .450,000

Total Contributed Capital . . . . . . . . . . . . $ 850,000

Retained Earnings . . . . . . . . . . . . . . . . . 150,000

Total Stockholders' Equity . . . . . . . . . . . .$ 1,000,000

Average issue price per share of preferred stock = $70 ($100,000 + $250,000)/5,000

                                              2005           2006

Total dividends declared    $4,000     $20,000

Preferred dividend                6,000         6,000

Cumulative dividend           -2,000          2,000

Common stock dividend      $0           $12,000

Journal Entry:

Debit Building $100,000

Credit Common stock $10,000

APIC - common stock $90,000

January 1, 2005: Treasury stock $5,000 Contributed Capital in excess of par value $17,000 Cash $22,000

February 1, 2005: Cash $15,000 Treasury stock $3,000 Contributed Capital in excess of par value $12,000

March 1, 2005: Cash $6,000 Treasury stock $2,000 Contributed Capital in excess of par value $4,000

During February, $75,150 was paid to creditors on account, and purchases on account were $96,190. Assuming the February 28 balance of Accounts Payable was $32,310, determine the account balance on February 1.

Answers

Answer:

$45,000

Explanation:

Given the above information, the account balance on February 1 is computed below;

Balance of account payable Feb 28 + Cash paid to creditors in February - Purchases on account

= $59,900 + $186,500 - $201,400

= $45,000

Therefore, the account balance on February 1 is $45,000

(CRM) system uses customer contact information for targeted _____. a. management b. inventory control c. marketing d. budgeting

Answers

Answer:

c. marketing

Explanation:

CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, this employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

This ultimately implies that, customer relationship is focused on developing an ongoing connection between a business firm (organization) and all of its customers, as well as potential customers. The fundamentals of customer relationship is based on improving customer service, sales support, marketing communications, and technical assistance, so as to bring satisfaction to the customers and increase sales for the company.

Typically, the degree of satisfaction received by customers throughout their lifecycle is largely dependent on customer relationship management.

Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research.

Hence, CRM system uses customer contact information for targeted marketing such as sending weekly letters, promotional messages, survey, etc.

In 2009, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2011, when Winn acquired some of the issued shares for $32 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?

a. 2018 net income is decreased.
b. Additional paid-in capital is decreased.
c. 2018 net income is increased.
d. Retained earnings is increased.

Answers

Answer: b. Additional paid-in capital is decreased.

Explanation:

Assume Winn sold 100 shares.

The entry would have recorded Common stock at $100 because the par value is $1.

Additional paid-in capital would have been:

= (35 - 1) * 100

= $3,400

When the stock was now required, it was required at $32. Assuming 50 were reacquired:

Common stock would be = 100 - 50 = $50

Additional paid-in capital would be = 3,400 - ((32 - 1) * 50) = $1,850

Additional paid-in capital would therefore decrease when the shares are reacquired.

SmartSC purchases from Supplier A are priced at $30 each and used at the rate of 600 units per month. Components purchased from supplier B are priced at $6 each and are used at the rate of 3000 units per year. The annual holding cost is 30 percent of the item’s value. If SmartSC purchases separately from the two suppliers, the fixed ordering cost for supplier A is 40 dollars each time. What is the economic order quantity for supplier A?
a) 125
b) 200
c) 253
d) 367

Answers

Answer:

SmartSC

The economic order quantity (EOQ) for Supplier A is:

= c) 253

Explanation:

a) Data and Calculations:

                               Supplier A       Supplier B

Price per unit                $30                 $6

Annual unit demand 7,200            3,000

Annual holding cost      $9                 $1.80 ($6 * 30%)

Ordering cost              $40

Economic order quantity for Supplier A = square root of (2 * D * S)/H

where D = Annual demand in units

S = Ordering cost per order

H = Holding cost per unit

= square root of  (2 * 7,200 * $40)/$9

= square root of 64,000

= 253

If a government fixes the wage rate above the mar-
ket equilibrium rate it will lead to
(A) ex-
cess demand for labour (B) low supply of labour
(C) excess supply of labour (D) industrial strike ac-
tions​

Answers

Answer:

Option B

Explanation:

Fixing the wage rate above the market equilibrium rate will disturb the demand and supply equilibrium of labor resource.

Wage rate above market will make labor as a resource costly for business and hence, there is possibility that the demand for labor will lower down. Thus, the supply of labor will get low.

Hence, option B is correct

Investing activities do not include the: Multiple Choice Purchase of plant assets. Loaning of money in exchange for notes receivable. Issuance of common stock. Sale of plant assets. Sale of short-term investments other than cash equivalents.

Answers

Answer:

Issuance of common stock.

Explanation:

For most​ firms, the cost of capital decreases to a low point as the firm​ ________ debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ ________.

Answers

Answer:

increases; decreases

Explanation:

In accounting, cost of capital can be regarded as cost of a company's funds which are "debt and equity" . It could also be from an investor's point of view "the required rate of return required on existing securities" of company's portfolio . cost of capital is utilized in

evaluation of new projects of a company. Debt financing which is regarded as one that take place when there is a raise of money by a company through the selling of debt instruments to investors. Debt financing takes place when fixed income products like bonds is sold by a firm. It should be noted that For most​ firms, the cost of capital decreases to a low point as the firm​ increases debt financing. At some point beyond this optimal​ level, the cost of capital increases as the amount of debt​ decreases

Finance


Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company

ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm 8is planning dividend payout ratio of 60%. Calculate:

a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.

b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decisionm

[2] R6 386,16.

[3] R1 930,43.

[4] R3 897,29.

[5] none of the above

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Financial Math

Q198898

 Deadline passed

Mr Mahlangu invests R20000 to play lobola. After 48 months he receives 65000. The interest on the investment is compounded quarterly. Determine the yearly interest rate at which money was invested. Give your answer as a percentage rounded to two decimal places.

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Biochemistry

Q198087

 Deadline passed

11. Indicate which type of bonds are involved in the following

a. Formation of the primary structure of a protein

b. Stabilization of the alpha helix and beta pleated sheet structures of proteins

12.Identify the biomolecular composition of the following cells

a.Endoplasmic reticulum

b.Mitochondria

c.Cytoskeleton

d. Nucleus

13 Under aerobic catabolism of glucose ,in which compartment of the eukaryotic cell does the following reaction occurs?

a conversion of pyruvate to acetyl CoA

b.conversion of succinyl -CoA to succinate

c.conversion ofNADH to ATP.

d.conversion of phosphologlycerate to phosphoenolpyruvate.

14. Briefly outline how ATP is generated from glucose in the absence of oxygen. What is the importance of this pathway?

15. Briefly explain the process by which excess dietary carbohydrates and lipids are stored in the human body

Answer approved2$1

Finance

Q199880

 Deadline: 28.05.21, 18:48

Walter and Gordon model analyse the impact of distribution of dividends on the valuation of the firm but the formula used in both the cases are different. Company

ABC Ltd wanted to evaluate the price of the share in both cases. The company earns ₹ 50 per share and expects the same for the next year. The cost of capital to the firm is 11%. The company earns return on investment of 15% and the firm is planning dividend payout ratio of 60%. Calculate:

a. Price of the share using Walter Model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether dividend is to be declared or not.

b. Price of the share using Gordon model. Comment on the relationship between return on investment and cost of capital in the case above and decision of the firm whether

dividend is to be declared or not.​

Answers

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged≡⇵∠⊅↓⇆°∞∴∴∵∵∵∴∴∵∵∴∴∵∴

∴∴≈↓∴↔∪∪∩⇄

Explanation:

14. On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful life is 10 years. The productive life of the truck is estimated to be 100,000 miles. During the first year, the truck was driven 19,000 miles. Nick uses the double-declining balance method of depreciation. What amount of depreciation expense should Nick record for the first year

Answers

Answer: $12000

Explanation:

The amount of depreciation expense that Nick should record for the first year will be:

The depreciation will be:

= 1/no. of years

= 1/10

= 10%

Then, the rate of depreciation for double-declining will be:

= 10% × 2

= 20%

Then, the depreciation for the first year will be:

= $60000 × 20%

= $60000 × 0.2

= $12000

Therefore, the amount of depreciation expense that Nick should record for the first year is $12000.

Depreciation expense should Nick record for the first year is $12000

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