Answers
Answer:
the present value of the future cash flows is $846.57
Explanation:
The computation of the present value of the future cash flows is shown below:
The Present value of inflows is
= Cash inflows × Present value of discounting factor (rate%,time period)
= $100 ÷ 1.25 + $200 ÷ 1.25^2 + $300 ÷ 1.25^3 + $400 ÷ 1.25^4 + $500 ÷ 1.25^5 + $600 ÷ 1.25^6
= $846.5664
Hence, the present value of the future cash flows is $846.57
Related Questions
The primary difference(s) between selecting the binomial (Cox-Ross-Rubinstein) model for valuing stock options versus the Black-Scholes option pricing model is:
Answers
Answer:
the consideration of the option over a period of time
Explanation:
The Cox-Ross-Rubinstein model is a market model to valuations of the options. It isl also known as the Binomial model. And most popularly known s the CRR model. It is multi period market stock model for stock price.
The Black-Scholes option pricing model is used to estimate the fair policy or the theoretical value of a call that is based o 6 variables including time, volatility, strike price, type of option, etc.
The main differences of a Cox-Ross-Rubinstein model and a Black-Scholes model is
--the consideration of any option over the period of time
--it is used for the stocks which pays a dividend without the model modification .
Consider the following scenario and determine whether an agency conflict exists:
Daniel and Ashley equally own and manage A New Beginning (ANB), a store that sells preowned clothing and furniture. Daniel is responsible for ANE's back-office activities, and Ashley staffs the store and makes deliveries to customers. Both have equal decision-making authority and, under the terms of their partnership agreement, both are prohibited from making personal purchases using company funds without prior approval of the other partner. Daniel, without Ashley's knowledge, used the company's bank account recently to purchase a new sports car. Daniel has acknowledged that the car will not be used to support the business.
Is this a potential agency conflict between Daniel and Ashley?
a. No; Daniel and Ashley co-own and co-manage ANB and have a partnership agreement that makes them equal, so an agency conflict cannot exist.
b. Yes; it should have been Ashley who purchased the car.
c. No; Daniel and Ashley are both authorized to spend ANB's money, so no conflict of interest can occur.
d. Yes; Daniel is misappropriating some of Ashley's wealth by unilaterally purchasing a nonbusiness asset using ANB's funds.
Answers
Answer:
c. No; Daniel and Ashley are both authorized to spend ANB's money, so no conflict of interest can occur.
Explanation:
Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. Next, assume that disposable income increases by $20 billion, consumption rises by $16 billion, and saving goes up by $4 billion, and saving goes up by $2 billion. What is the economy's MPC? Its MPS? What was the APC before the increase in disposable income? After the increase?
Answers
Answer:
A. MPC = 0.9
B. MPS = 0.1
C. APC= 0.75
D. APC= 0.764
Explanation:
a. Calculation for the economy's MPC (Marginal propensity to consume)
Using this formula
MPC = ΔConsumption/ΔIncome
Let plug in the formula
MPC = $18/$20
MPC = 0.9
Therefore the economy's MPC (Marginal propensity to consume) will be 0.9
b. Calculation for What is its MPS (Marginal propensity to save)
Using this formula
MPS = ΔSaving/ΔIncome
Let plug in the formula
MPS = $2/$20
MPS = 0.1
Therefore its MPS will be 0.1
c. Calculation for What was the APC ( Average propensity to consume ) before the increase in disposable income
Using this formula
APC = Consumption/Income
Let plug in the formula
APC = $150/$200
APC= 0.75
Therefore APC will be 0.75
d. Calculation for What was the APC after the increase
First step is to calculate the disposable income
Disposable income=$200 + $20
Disposable income=$220
Second step is to calculate the Consumption after the change
Consumption after the change =$150 + $18
Consumption after the change =$168
Now let calculate the APC after the increase
APC = $168/$220
APC= 0.764
Therefore APC after the increase will be 0.764
Briefly describe what is meant by the industrial market structure (IMS). Why is an understanding of the IMS so important for companies in their strategic management process
Answers
Answer is given below:
Explanation:
Industrial market structure is a systematic representation of different organization based on the level of competition for these products or services the nature and nature of these products or services in the market. Industry market is structured is important in a company's strategic management process for the following reasons Clearly assess business objectives Knowing how much competition there is in the market. Get details of your competitor's business development. Competing in the marketAnother way of looking at values is what a person feels is _____________ or _____________.
a.
right; wrong
b.
expensive; cheap
c.
silly; serious
d.
fun; boring
Answers
Answer:
A.
right or wrong
Explanation:
Another way to look at values is to consider what a person believes to be right or wrong. Option A is correct.
What is the significance of values?The consciousness of right and wrong is indicated or shown in our values. They support in our growth and improvement. The values support all the peoples in shaping the future desire. Every decision we create every day reflects our values.
Therefore, option A correct.
To learn more about the values, refer to:
https://brainly.com/question/8215595
#SPJ2
What's a business model that excites you?
Answers
Answer: Fashion model, Technology
Explanation:
Panner, Inc., owns 35 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $86,800 and then sells it to Watkins for $124,000. At the end of the year, Watkins still holds only $21,800 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method
Answers
Answer: $2289
Explanation:
First, we have to calculate the gross percentage which would be:
= (Revenue - Cost of goods sold) Revenue
= ($124000 - $86800) / $$124000
= 30%
Therefore, the amount of gross profit must Panner defer in reporting this investment using the equity method would be:
= ($21800 × 30%) × 35%
= $21800 × 0.3 × 0.35
= $2289
Todd Johnson had the following items of income and losses during the tax year:
Wages $40,000
Non-business bad debt $1,000
Gann on commodities held 16 months $2,000
Loss on stock held 2 years $(800)
Flood damage on personal residence owned 5 years $4500
Gain on stock held 13 months $5,000
The Flood damage occurred due to a federally declared disaster. What is Todd's taxable capital gain for the tax year?
a. $500
b. $700
c. $5,200
d. $6,200
Answers
Answer:
b. $700
Explanation:
Todd's capital gains = -$1,000 (bad debt) - $2,000 (gain on commodities held for 2 years) - $800 (loss on stock held for 2 years) - $4,500 (flood damage) + $5,000 (gain on stocks held for 13 months) = $700
Capital losses due to federally declared natural disasters can offset capital gains.
Answer:
Todd Johnson
Todd's taxable capital gain for the tax year is:
d. $6,200
Explanation:
a) Data and Calculations:
Gain on commodities held 16 months $2,000
Loss on stock held 2 years $(800)
Gain on stock held 13 months $5,000
Net Capital Gains (Long-term) $6,200
b) A capital gain or loss exists on property such as a home, car, and investment property, like stocks and bonds when is sold. Short-term capital gain or loss is differentiated from long-term capital gain or loss. Usually, long-term capital gain or loss is calculated for assets held more than a year before disposal, while short-term gain or loss is calculated separately for assets sold within a year of being held.
Please help with the highlighted part. this is a practice essay
Answers
Answer:
Expansion: A speedup in the pace of economic activity defined by high growth, low unemployment, and increasing prices.
Peak: The upper turning point of a business cycle and the point at which expansion turns into contraction.
Contraction: A slowdown in the pace of economic activity defined by low or stagnant growth,...
there you go hope you consider brainliest
Explanation:
Select the correct answer.
Someone who scores mostly "yes" answers in the social category of the RIASEC would probably not enjoy a career in
A Research
B. Social work
C Nursing
D Teaching
Answers
Answer:
D
Explanation:
Answer:
D, Teaching
Explanation:
have a nice day
Suppose you bought a 8 percent coupon bond one year ago for $1,070. The bond sells for $1,135 today. Requirement 1:Assuming a $1,000 face value, what was your total dollar return on this investment over the past year
Answers
Answer:
The total dollar return on this investment over the past year is $145.
Explanation:
The total return will be the sum of the interest income received from the bond and any price apppreciation received after one year period.
First we need to determine the interest income
Interest income = Face value of the bond x Coupon rate
where
Face value = $1,000
Coupon rate = 8%
Interest income = $1,000 x 8%
Interest income = $80
Now calculate the price appreciation
Price appreciation = Present value of the bond - Purchase value of the bond
Where
Present value of the bond = $1,135
Purchase value of the bond = $1,070
Placing values in the formula
Price appreciation = $1,135 - $1,070
Price appreciation = $65
Now calculate the total return
Total return = Interest income + Price appreication
Total return = $80 + $65
Total return = $145
As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated depreciation of $75,975 has been recorded. If similar equipment would cost $158,400 to replace and the partners agree on a valuation of $51,500 for the contributed equipment, what amount should be debited to the equipment account
Answers
Answer:
This is a repeat question on Brainly but here you go.
$51,500Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent
So, the equipment amount should be debited at $51,500 instead of the original cost or the replacing cost
Which of the following explains why tariffs and quotas raise the cost of protected products, such as sugar, to consumers?
-High demand forces domestic businesses to lower prices to match foreign competitors' prices
-High demand causes the government to raise revenues to protect domestic farmers
-High demand encourages world prices to increase at regular intervals
-High demand encourages domestic quantities to increase, raising domestic prices higher than world prices
Answers
Answer: High demand encourages domestic quantities to increase, raising domestic prices higher than world prices
Explanation:
Due to tariffs and quotas, the amount of the protected goods coming into the country from countries where it is cheaper will reduce.
This will push people towards the domestic manufacturers of the goods. This increase in demand for local goods will lead to the producers having to charge more as well as produce more. As they are charging more based on the situation in their own country, the prices will be more than world prices.
what are the effects of inflation on the prices of goods and services?
Answers
Answer:
When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.
Answer:
When prices for energy, food, commodities, and other goods and services rise, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate, and government bond yields, and every other facet of the economy.
Explanation:
Review the course learning outcomes and preview the assignments and discussions early in the course. In doing so, you will gain an understanding of what is ahead and be better prepared to ask questions and strategize successful completion of the course. Then, describe how your understanding of the human resource management concepts in this course may support your current role or a position you would like to obtain.
Answers
Explanation:
Human resources is one of the organizational resources that will bring the most sustainable competitive advantages to a company. In the globalized and competitive environment, companies have become promoters of social and environmental well-being in addition to being merely profitable entities, which involve all their stakeholders, from end customers, such as investors, suppliers and employees.
The human resources department needed to adapt to this new demand from society, and then manage human capital more ethically and effectively. The workplaces of large companies are made up of people of different cultures, nationalities and values, so it is essential that each organization has policies and practices that include protection, integration and respect for the values and profile of each employee.
Therefore, it is also necessary for each employee to adapt to the multicultural work environment, be ethical, have good communication skills and adapt to new work dynamics, always seeking innovation and business vision.
The production possibilities model illustrates an inverse relationship between two goods or services because
Answers
Answer:
production of different types will compete for limited resources.
Explanation:
The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.
The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.
An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.
if you invest $200 the end of each month over the next 20 years in a mutual fund that has a nominal annual rate of 12% how much will you get at the end of 20 years
Answers
Answer:
I will get $197,851 at the end of the 20 years.
Explanation:
Note: It is assumed the interest is compounded monthly
Use the following formula to calculate the amount to be received after 20 years
Future value of annuity = Annuity payment x ( ( ( 1 + periodic interest rate )^ Numbers of periods ) - 1 ) / periodic interest rate )
Where
Annuity Payment = $200 monthly
Periodic Interest rate = Nominal Interest rate / Numbers of periods in a year = 12% / 12 months = 1%
Numbers of periods = Numbers of years x Numbers of periods in a year = 20 years x 12 months = 240 months
Placing values in the formula
Future value of annuity = $200 x ( ( ( 1 + 1% )^240 ) - 1 ) / 1% )
Future value of annuity = $197,851.07
Future value of annuity = $197,851
Discuss how expatriates experience reverse culture shock in the repatriation process. What can companies do to help expatriates continue to be part of their home communities? If you were going through the repatriation process, what would you want the company to do for you and your family?
Answers
Answer:
fvsvfdc
Explanation:
Randi wants to hire five workers for her factory. She is finding that the people
who live in the same county as the factory lack the skills needed to perform
the job. She has been told that workers from surrounding areas are not willing
to drive over 100 miles each day to get to the factory. Which situation is Randi
facing?
Answers
Answer:
D
Explanation:
Suppose it is decided that rent control in New York City will be abolished and that market rents will now prevail. Assume that all rental units are identical and so are offered at the same rent. To address the plight of residents who may be unable to pay the market rent, an income supplement will be paid to all low income households equal to the difference between the old controlled rent and the new market rent. What effect will the elimination of the rent control have on the quantity and quality of rental housing supplied
Answers
Answer:
The effect of the elimination of the rent control on the quantity and quality of rental housing supplied in New York City is:
increased quantity and quality of supplied rental housing.
Explanation:
In line with the laws of demand and supply, the quantity and quality supplied of the rental housing will increase drastically in New York City once rent control is abolished. The only limiting factors will be the availability of resources, like land, labor, and capital for housing development. If these resources are abundantly available, coupled with the presence of entrepreneurs, the number of rental housing will skyrocket in a few years to the extent that the housing market in the city will overrun demand.
You are given the following information for O'Hara Marine Co.: sales = $75,500; costs = $35,200; addition to retained earnings = $9,580; dividends paid = $8,420; interest expense = $2,620; tax rate = 23 percent. Calculate the depreciation expense.
Answers
Answer:
O'Hara Marine Co.
Depreciation Expense is:
$13,903
Explanation:
a) Data and Calculations:
sales = $75,500;
costs = $35,200;
addition to retained earnings = $9,580;
dividends paid = $8,420;
interest expense = $2,620;
tax rate = 23 percent
Net Income:
addition to retained earnings = $9,580;
dividends paid = $8,420
Total net income = $18,000
Pre-tax Income = $18,000/0.77 = $23,377
Income tax (23%) of $23,377 = $5,377
After Tax Income = $18,000 ($23,377 - 5,377)
Depreciation:
sales = $75,500
costs = $35,200
Gross profit = $40,300
Less interest (2,620)
Less net income (23,777)
Depreciation = $13,903
Question #5
Multiple Choice
The basic calculation for Cost of Goods Sold for a retail business is:
Beginning Inventory + Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold
Beginning Inventory - Inventory Purchases - End Inventory = Cost of Goods Sold
O Beginning Inventory - Inventory Purchases + End Inventory = Cost of Goods Sold
© 2016 Glynlvon, Inc.
Answers
Starting inventory + purchases - ending inventory = cost of goods sold.
Answer:
the correct answer is b
Explanation:
You want to learn more about how to align individual employee's goals with the overall organization's goals. which HRM function covers your concerns
Answers
Answer:
The HRM (Human Resources Management) function that covers concerns about how to align individual employee's goals with the overall organization's goals is:
Performance management.
Explanation:
In Human Resource Management (HRM), there are various functions dealing with Human resource planning, Recruitment and selection, Performance management, Learning and development, Career planning. The performance management unit ensures that individual employee's goals are aligned with the overall goals of the organization in order to achieve organizational success. The performance management function helps HR managers to establish, agree, and marry the goals of employees with organizational performance expectations.
What did this embargo cost the U.S taxpayers?
Answers
Answer:
explanation below
Explanation:
The Cuban embargo, known as el bloqueo (the blockade), was one that happened due to Cuba’s expropriation of “some $1.8 billion worth of U.S.-owned property. The US put policies in place to restrict the way other countries engage in businesses with Cuba.
As the embargo continued to affect the people of Cuba, it also cost the US far more than expected. Certain reports has it that the US has lost nearly all its international support for the embargo. The cost of the embargo on the economy of the US was around $130 billion over nearly six decades.
A proposed new project has projected sales of $123,000, costs of $57,000, and depreciation of $12,600. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Answers
EBIT = Sales - Costs - Depreciation
= 123,000 - 57,000 - 12,600
= $53,400
EBIT = EBT as no interest in question.
Tax = EBIT * Tax rate
= 53,400 * 35%
= $18,690
Operating cashflow = 53,400 + 12,600 - 18,690
= $47,310
Approach 2 ⇒ Top-down Approach= Sales - cost - tax
= 123,000 - 57,000 - 18,690
= $47,310
Approach 3 ⇒ Tax-Shield
= (Sales - Cost) * (1 - Tax rate) + (Depreciation * Tax rate)
= (123,000 - 57,000) * (1 - 35%) + (12,600 * 35%)
= $47,310
Approach 4 ⇒ Bottom-up= (Sales – Cost – Depreciation) * (1 - Tax rate) + Depreciation
= (123,000 - 57,000 - 12,600) * ( 1 - 35%) + 12,600
= $47,310
Imagine that you own a small hardware store and need to price several new items. What legal considerations would you need to take when pricing these items
Answers
Answer:
The legal considerations that would be taken into account when pricing items in a small hardware store are:
1. Predatory pricing: This strategy prices items very low for the purpose of eliminating competition. It is illegal. Since predatory pricing violates antitrust laws, it causes the rising of monopolistic markets and the creation of monopolies. The allegations of predatory pricing are usually hard to prove because of the counter-argument that it could be part of normal competition.
2. Price discrimination: The Robinson-Patman act prohibits price discrimination or the attempt of companies to sell the same goods at different prices to different consumers.
3. Both predatory pricing and price discrimination because of their negative economic consequences are regarded as deliberate moves by business entities to undermine the marketplace and the forces of demand and supply. They are frowned at ethically and severely punished in the court of law.
Explanation:
When setting prices, it is a standard practice to consider all factors that could result in business problems and legal battles. It is not only economic profit consideration that should be taken care of, but there are competitive, socio-legal, and growth factors to be considered. Ethics is also another important consideration. Unethical violations could lead to fraudulent and illegal prosecutions.
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows: Enlightner Foglighter Sales volume in units 500 400 Unit sales price $ 300 $ 400 Unit variable cost 200 240 Unit contribution margin $ 100 $ 160 It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $90,000. Demand is high enough for either product to keep the plant operating at maximum capacity. Assuming that sales mix in terms of units remains constant, what is the breakeven point in total units
Answers
Answer:
Crown Co.
The breakeven point in total units is:
711 units
Explanation:
a) Data and Calculations:
Enlightner Foglighter Total
Sales volume in units 500 400 900
Unit sales price $ 300 $ 400
Sales value $150,000 $160,000 $310,000
Unit variable cost 200 240
Variable costs $100,000 $96,000 $196,000
Unit contribution margin $ 100 $ 160
Total contribution $50,000 $64,000 $114,000
Machine hour 1 1
Weighted contribution margin per unit $126.67 ($114,000/900)
Total fixed costs $90,000
Variable costs $196,000
Total costs = $286,000
Weighted contribution margin per unit:
Enlightner Foglighter Total
Unit contribution margin ($ 100 *5/9) ($ 160 * 4/9)
$55.56 $71.11 $126.67
Break-even point in total units = Fixed costs/Weighted contribution margin per unit
= $90,000/$126.67
= 710.5 units
SGS Corp. has an ROE of 14 percent and a payout ratio of 22 percent. What is its sustainable growth rate?
Answers
Answer:
14.05%
Explanation:
Return on equity ROE =14%
payout ratio = 22%
Now, retention ratio b = 100-payout ratio= 100-22=88%
=0.88
Now sustainable growth rate = (ROE×b)/(1-(ROE*b)
= (0.14*0.88)/(1-0.14*0.88) =0.1405
=14.05%
is the grouping of jobs
into working units usually called
units, groups, or divisions.
Answers
Answer:
units is the closest thing
Explanation:
it's usually called departmentalization but units is the next thing
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $4,300 and a fair market value of $15,000. Kelsey will invest a building with a book value of $34,600 and a fair market value of $57,600. What amount will be recorded to Kelsey's capital account
Answers
Answer: $57600
Explanation:
The capital account of a business indicates the net worth it that particular business. The fair value of an asset brings about an increase to the capital account.
In this scenario, the amount that will be recorded to Kelsey's capital account will be her fair market value of the building which is $57,600.
