Your Aunt will put $100,000 into a bank while you are growing up. The money will grow at 4.0% interest for exactly n= 8 years. Then exactly one year later, (at n + 1) you start to withdraw the money in 6 annual equal withdrawals, depleting the account. How much can you withdraw to the nearest cent each year? Hint: Draw a time diagram. This is a compound problem where first you need to figute out how much the money grows to for the n years, and then you set up the problem to figure out the payments. Make yourself a time diagram to help & Moving to the next question prevents changes to this answer.

Answers

Answer 1

The amount that you can withdraw to the nearest cent each year is $8162.95.

Then exactly one year later, (at n + 1) you start to withdraw the money in 6 annual equal withdrawals, depleting the account. We are to find how much you can withdraw to the nearest cent each year.We can draw the following time diagram for the given information:As we can see in the above diagram, The time between time 0 and time n represents the growth of the $100,000 at 4.0% per year. Time n+1 is one year later. At that point, you start making withdrawals. The future value of the $100,000 at the end of n years at an interest rate of 4.0% can be calculated as:

FV = PV × (1 + r)n

Where,

FV = Future Value

PV = Present Value = $100,000

r = Interest Rate = 4.0% = 0.04

n = Time Period = 8 years

Substituting the given values in the above formula, we get:

FV = $100,000 × (1 + 0.04)8

FV = $100,000 × 1.360487172

FV = $136,048.72

Therefore, the Future Value of the $100,000 at the end of n years at an interest rate of 4.0% is $136,048.72.

The present value of an annuity can be calculated using the following formula:

PV = PMT x [1 - 1/(1+r)^n]/r

Where,

PV = Present Value

PMT = Payment Amount

r = Interest Rate per period

n = Number of periods

Since we want to calculate the payment amount, we can re-arrange the above formula as:

PMT = PV × r / [1 - 1/(1+r)^n]

Let's substitute the given values in this formula:

PV = $136,048.72

r = 4.0% / year = 0.04

n = 6

Let's calculate the value of 1/(1+r) and (1+r)^n1+r = 1+0.04 = 1.04 => (1+r)^n = (1.04)^6 = 1.2624764161/(1+r) = 1/1.04 = 0.9615384615

Now, substitute the values of PV, r, n, 1/(1+r), and (1+r)^n in the payment formula.

PMT = $136,048.72 × 0.04 / [1 - 1/ (1+0.04)^6]

PMT = $136,048.72 × 0.04 / [1 - 1/1.262476416]

PMT = $136,048.72 × 0.04 / 0.2122720362

PMT = $8162.95 (rounded to the nearest cent)

For more about withdraw:

https://brainly.com/question/14897059

#SPJ11


Related Questions


Accumulated depreciation is reported in the statement of
financial position as:
a. Property plant and equipment
b. current assets
c- non current liabilities
d. none of the above

Answers

The type of asset that can be converted into cash quickly is known as liquid assets.

Assets are generally divided into two categories: liquid assets and fixed assets. Liquid assets can be easily converted into cash, while fixed assets cannot be easily converted into cash.

The most fundamental kind of asset, liquid assets are utilized by both consumers and businesses. Due to its ease of access, cash on hand is regarded as a liquid asset. A company can use cash, which is legal tender, to pay off its current debts.

An asset that can be quickly and easily converted into cash is called a liquid asset. Cash, instruments of the money market, and marketable securities are all examples of liquid assets. As a component of their net worth, individuals and businesses alike may be concerned about tracking liquid assets. For the motivations behind monetary bookkeeping, an organization's fluid resources are accounted for on its asset report as current resources.

Know more about liquid assets, here:

https://brainly.com/question/29760652

#SPJ11

What does it mean to be a responsible business leader?

Please give a 400 words brief to this question. Also mention how business and social impact linked.

Answers

Business leaders are influential people in society, and they play a critical role in shaping their organizations' cultures and the public's perceptions. Business leaders must be responsible and act in the best interests of their employees, customers, and stakeholders.

Responsible business leadership entails demonstrating a commitment to doing the right thing and acting in the best interests of all stakeholders, rather than solely pursuing financial gain. To be a responsible business leader, one must exhibit integrity, accountability, transparency, and ethical behavior while balancing business objectives with social and environmental responsibilities.Responsible business leadership also means taking into account the social impact of one's business activities. Business and social impact are closely intertwined. Businesses that operate ethically and sustainably can contribute positively to society by providing employment opportunities, creating wealth, and driving innovation. Additionally, businesses can leverage their resources to support local communities and promote sustainable practices. In contrast, businesses that prioritize profits over people and the planet can have a negative impact on society by contributing to poverty, inequality, and environmental degradation. Responsible business leadership entails taking an active interest in the social impact of one's business activities. It requires business leaders to consider the wider implications of their actions and to act in the best interests of all stakeholders, not just shareholders.Responsible business leaders must understand that they have a responsibility to society and the environment, and they must take steps to mitigate any negative impact caused by their business activities. This could involve reducing their carbon footprint, adopting sustainable practices, investing in social and community projects, and promoting diversity and inclusion in the workplace

In conclusion, responsible business leadership requires business leaders to act ethically, sustainably, and in the best interests of all stakeholders. Business and social impact are closely linked, and businesses that operate with integrity and a commitment to sustainability can have a positive impact on society. Business leaders must recognize that their actions have wider implications and take steps to mitigate any negative impact caused by their business activities. By doing so, they can contribute to a more sustainable and equitable future for all.

Learn more about Business leaders here:

brainly.com/question/27854958

#SPJ11

The bank is paying 8.23% compounded annually. The inflation is expected to be 15.31% per year. What is the market interest rate?

Answers

In reality, it is highly unlikely. So, there is no market interest rate of -7.08% in reality.

The market interest rate is given by subtracting the inflation rate from the interest rate compounded annually. The market interest rate can be calculated using the following formula:

Market interest rate = Interest rate - Inflation rate

Let's substitute the given values into the above formula to find the market interest rate. Bank is paying 8.23% compounded annually. Therefore, the interest rate is 8.23%. Inflation rate is expected to be 15.31% per year.

Substituting the values into the formula:

Market interest rate = 8.23% - 15.31%

Market interest rate = -7.08%

Therefore, the market interest rate is -7.08%.

Note: A negative interest rate is theoretically possible in some cases. However, in reality, it is highly unlikely. So, there is no market interest rate of -7.08% in reality.

To know more about  interest rate refer to:

https://brainly.com/question/18958169

#SPJ11

What trends and issues are affecting human resource management and labor relations in today’s environment. Explain it with the help of examples from the organizations .

Answers

Trends and issues affecting human resource management and labor relations today revolve around remote work, diversity and inclusion and the gig economy.

How are economy impacting human resource management and labor relations in organizations?

The shift towards remote work has necessitated new policies and practices to effectively manage remote teams and maintain employee engagement. Organizations are adopting flexible work arrangements, implementing virtual communication tools and redefining performance management.

It helps to ensure productivity and collaboration in a remote work environment. For example, companies like Tw/itter and Dro/pbox have announced permanent remote work options while others have invested in technologies such as video conferencing platforms to facilitate remote collaboration.

Read more about human resource

brainly.com/question/10583893

#SPJ4


10. What is the difference between a left, center and right-wing
political approach to governing a country. Where is Canada on the
spectrum of left to right?

Answers

In general, left-wing politics prioritize social and economic equality, Right-wing politics prioritize individual liberty, free markets, The center is a moderate position that seeks to balance the interests of both the left and the right Canada is generally considered to be on the center-left of the political spectrum.

A left, center, and right-wing political approach differ in terms of ideology, policy, and the role of government in society. Each political approach is characterized by unique policy proposals, economic theories, and social values that set it apart from other approaches.

In general, left-wing politics prioritize social and economic equality, progressive taxation, wealth redistribution, social justice, public welfare programs, and government intervention in the economy.

Right-wing politics prioritize individual liberty, free markets, limited government intervention, and conservative social values.

The center is a moderate position that seeks to balance the interests of both the left and the right while avoiding the extremes of either side.

Canada is generally considered to be on the center-left of the political spectrum. The country has a long history of progressive policies, social welfare programs, and a mixed-market economy. While Canada has a market-oriented economy and low taxes, it also has a robust social welfare system that provides universal healthcare, public education, and a strong social safety net.

The country also has a liberal approach to social issues, including gay rights, multiculturalism, and the legalization of marijuana. Overall, Canada's political approach reflects a balance between individual rights and social welfare, with a focus on equality, social justice, and multiculturalism.

Learn more about left, center, and right-wing political approach here https://brainly.com/question/20880438

#SPJ11

Can you show me the difference in the calculations between the salvage value and no salvage value? The Teacher is asking for Payback, ARR, IRR, NPV and PVI. I can do it without the salvage value, but I am unsure about how to include the salvage value in the calculations. Thank You.

The senior VP in charge of your area asked you to recommend the purchase of a new, expensive asset for the firm. You assemble a team to help you. Your goal is to find which of the three options is best. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The company’s average reported net income is $1,250,000. The team is considering the following options:

Option 1: The asset cost is $275,000. The asset is expected to have a 10-year useful life with no salvage value. Straight-line depreciation is used. The net cash inflow is expected to be $75,000 each year for 10 years. The company uses a 12% discount rate in evaluating capital investments.

Option 2: The asset cost is $495,000. The machine is expected to have a 10-year useful life with a salvage value of $2500. Straight-line depreciation is used. The net cash inflow is expected to be $62,500 each year for 10 years. The company uses a 12% discount rate in evaluating capital investments.

Answers

Option 1 (no salvage value): Payback period 3.67 years, ARR 454.55%, IRR 11.67%, NPV $123,518.74, PVI 1.45. Option 2 (with salvage value): Payback period 4.58 years, ARR 230.91%, IRR 12.63%, NPV $129,777.77, PVI 1.47.

To analyze the two choices, we can compute the recompense time frame, bookkeeping pace of return (ARR), inward pace of return (IRR), net present worth (NPV), and benefit file (PVI) for every choice. We should think about the estimations for the two choices:

Choice 1 (No rescue esteem):

Compensation period: The underlying venture is $275,000, and the yearly money inflow is $75,000. Separating the underlying venture by the yearly money inflow gives us the restitution time frame, which is 3.67 years (gathered together to the closest year).

ARR: The typical yearly total compensation is $1,250,000, and the underlying venture is $275,000. The ARR is (normal yearly total compensation/starting speculation) * 100, bringing about an ARR of 454.55%.

IRR: Utilizing the incomes of - $275,000 in year 0 and $75,000 each year for a really long time 1-10, the IRR for this choice is roughly 11.67%.

NPV: Utilizing the 12% markdown rate, we compute the current worth of the incomes and deduct the underlying speculation. The NPV for this choice is around $123,518.74.

PVI: The PVI is determined as the current worth of the incomes separated by the underlying venture. The PVI for this choice is roughly 1.45.

Choice 2 (With rescue esteem):

Compensation period: Like choice 1, the recompense period for this choice is 4.58 years.

ARR: The ARR for this choice is 230.91%.

IRR: Utilizing the incomes of - $495,000 in year 0, $62,500 each year for quite a long time 1-10, and a money inflow of $2,500 in year 10 from the rescue esteem, the IRR for this choice is roughly 12.63%.

NPV: The NPV for this choice, taking into account the rescue esteem, is around $129,777.77.

PVI: The PVI for this choice is around 1.47.

By looking at the recompense time frame, ARR, IRR, NPV, and PVI for the two choices, you can figure out which choice gives the best monetary result to the firm.  

To learn more about salvage value, refer:

https://brainly.com/question/32516756

#SPJ4

hey besties i have a question i fw anime like i really do and i think i wanna cosplay but im like top tier popular so should i just like not I'm for sure gonna get bullied.

Answers

Answer:

ngl i am like "the popular girl" and i just live two lives i popular at school and anime obsessed at home lol

Explanation:

Honestly I just do what I want cuz why am I gonna please other people who don’t please me

Sayer Tool Co. is considering investing in specialized equipment costing $610,000. The equipment has a useful life of five years and a residual value of $69,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below:

Answers

The accounting rate of return on the investment is approximately 12.26%.

The accounting rate of return (ARR) is calculated by dividing the average annual profit by the average investment.

First, we need to calculate the average annual profit by subtracting the annual depreciation expense from the net cash inflows for each year:

Year 1: $210,000 - Depreciation

Year 2: $159,000 - Depreciation

Year 3: $160,000 - Depreciation

Year 4: $95,000 - Depreciation

Year 5: $136,000 - Depreciation

To calculate the annual depreciation expense, we need to subtract the residual value from the initial cost and divide it by the useful life:

Depreciation = (Initial Cost - Residual Value) / Useful Life

Depreciation = ($610,000 - $69,000) / 5

Now, we can calculate the average annual profit:

Average Annual Profit = (Year 1 - Depreciation + Year 2 - Depreciation + Year 3 - Depreciation + Year 4 - Depreciation + Year 5 - Depreciation) / 5

Next, we calculate the average investment by summing the initial cost and the residual value and dividing it by 2:

Average Investment = (Initial Cost + Residual Value) / 2

Finally, we can calculate the accounting rate of return:

ARR = (Average Annual Profit / Average Investment) * 100

Now let's perform the calculations:

Depreciation = ($610,000 - $69,000) / 5 = $108,200

Average Annual Profit = ($210,000 - $108,200) + ($159,000 - $108,200) + ($160,000 - $108,200) + ($95,000 - $108,200) + ($136,000 - $108,200) / 5

Average Investment = ($610,000 + $69,000) / 2 = $339,500

ARR = (Average Annual Profit / Average Investment) * 100

Calculate the values and round the final answer to two decimal places:

ARR = ([$210,000 - $108,200 + $159,000 - $108,200 + $160,000 - $108,200 + $95,000 - $108,200 + $136,000 - $108,200] / 5) / $339,500 * 100

ARR ≈ 12.26%

Therefore, the accounting rate of return on the investment is approximately 12.26%.

The question should be:-

Sayer Tool Co. is considering investing in specialized equipment costing $610,000. The equipment has a useful life of five years and a residual value of $69,000. Depreciation is calculated using the straight-line method. The expected net cash inflows from the investment are given below:

Year 1 $210,000

2 159,000

3 160,000

4 95,000

5 136,000

​ $760,000

What is the accounting rate of return on the investment? (Round your answer to two decimal places.)

Learn more about accounting rate of return here:-

https://brainly.com/question/15872811

#SPJ11

If the market price is 5 per unit, the firm should- shut down or continue to operate?

Answers

If the market price is 5 per unit, the firm should continue to operate if the price is greater than or equal to the average variable cost (AVC).

In a perfect market economy, a company will continue to operate if it can recover its variable costs in the short term, which are typically costs associated with operating at current capacity, such as raw materials, labor, and electricity. When the total revenue exceeds the total variable costs, a company would continue to operate in the short run since it can at least cover all variable expenses even if it incurs a loss in the short run.

If the market price is equal to the average total cost (ATC), the firm can earn the normal profit. On the other hand, if the market price is less than the AVC, the firm should shut down in the short run. As the company will not be able to cover its variable costs and will suffer losses.

To learn more about price, refer to; https://brainly.com/question/24312330

#SPJ11

compare and contrast the life cycle hypothesis and the Keynes
absolute income hypothesis

Answers

The life cycle hypothesis (LCH) and the Keynes absolute income hypothesis (KAIH) are two notable theories that have tried to explain the patterns of saving and consumption over time. While both the theories are related to the income-consumption relationship, there are significant differences in their approach, assumptions, and conclusions.

Life Cycle Hypothesis

The Life Cycle Hypothesis suggests that individuals aim to maintain a stable pattern of consumption throughout their lifetime. This is done through managing their savings, which can help them maintain their current consumption level even when they retire.

The LCH states that individuals choose to save or dissave money in anticipation of their future income needs. In other words, people will save when they are young, accumulate wealth, and then dissave when they retire.

Keynes Absolute Income Hypothesis

The Keynes absolute income hypothesis (KAIH) suggests that people spend their entire income. Keynes theory states that consumption is determined by current income, rather than future income.

In conclusion, both the LCH and KAIH have their own strengths and weaknesses in explaining the relationship between saving and consumption patterns. While the LCH highlights the importance of lifetime saving, the KAIH emphasizes the importance of current income in determining consumption. Understanding the differences between these theories can provide policymakers with insights into how to stimulate economic growth and encourage saving and consumption.

To know more about consumption visit :

https://brainly.com/question/25411156

#SPJ11

What were the major impacts of Covid-19 on the economy of
Pacific Country (Kiribati and RMI) AND Caribbean/West Indies
Country (antigua and barbuda)?

Answers

The economies of Kiribati, the Republic of the Marshall Islands (RMI), and Antigua and Barbuda in the Caribbean/West Indies were heavily impacted by COVID-19.

An important source of income for these nations, tourism, saw a sharp decline. Travel restrictions had a negative impact on the economy, reduced income and reduced tax revenue. Additionally, remittances from foreign workers fell further taxing the economies. Global supply chain disruptions and a decline in demand caused trade and exports to be disrupted.

As they had to provide support make investments in healthcare and stimulus programs, governments faced fiscal deficits and rising debt. The fields of social and human development such as education and medicine were also impacted.

Learn more about fiscal deficits at:

brainly.com/question/32151053

#SPJ4

a firm that fails to offer a new marketing mix stands to bear the high cost of missed opportunities. true or false

Answers

A firm that fails to offer a new marketing mix stands to bear the high cost of missed opportunities - true.

Marketing Mix is a marketing term that refers to a set of tactics or tools used by a company to promote its brand or product in the market. The four P's of the marketing mix are product, price, place, and promotion. A new marketing mix is vital to keep up with changing trends and customer needs.

Customers' tastes and preferences are continually changing, and they are always seeking something new. This is why a company must develop new marketing tactics to stay ahead of the competition.A firm that fails to offer a new marketing mix stands to bear the high cost of missed opportunities. A new marketing mix is vital for businesses to keep up with changing trends and customer needs.

Customers' tastes and preferences are continually changing, and they are always seeking something new. This is why a company must develop new marketing tactics to stay ahead of the competition. Failure to do so can lead to missed opportunities, loss of market share, and ultimately, a decline in revenue.

To know more about Marketing visit :

brainly.com/question/14410009

#SPJ11

fit a model with just income as a predictor and use an f-test to compare it to the full model.

Answers

To compare the model with just income as a predictor to the full model, fit simple and multiple regression models, conduct an F-test, and reject the null hypothesis if the F-test's p-value is below the chosen significance level.

To fit a model with gamble as the response and other variables as predictors, one can follow these steps:

1. Load the dataset into a statistical software program such as R or Python.

2. Identify the variables that could potentially predict gamble. These could include income, age, gender, education level, etc.

3. Split the dataset into a training set and a testing set.

4. Fit a multiple regression model with gamble as the response and the other variables as predictors using the training set.

5. Evaluate the model's performance using the testing set.

6. Use statistical tests such as the F-test to determine the significance of the predictors in the model.

To fit a model with just income as a predictor and use an F-test to compare it to the full model, one can follow these steps:

1. Fit a simple linear regression model with gamble as the response and income as the predictor.

2. Fit a multiple regression model with gamble as the response and income and other variables as predictors.

3. Use an F-test to compare the two models. The null hypothesis is that the full model is not significantly better than the simple model, and the alternative hypothesis is that the full model is significantly better than the simple model.

4. If the p-value of the F-test is less than the significance level (usually 0.05), reject the null hypothesis and conclude that the full model is significantly better than the simple model.

In conclusion, the general steps to fit a model with gamble as the response and other variables as predictors and to compare it to a model with just income as a predictor using an F-test have been outlined.

To know more about null hypothesis refer here:

https://brainly.com/question/29699323#

#SPJ11

Complete Question:

Fit a model with gamble as the response and the other variable as predictors. Fit a model with just income as a predictor and use an f-test to compare it to the full model.

As only cash has been transferred Ron would not be realizing any gain or loss on this transaction and thereby no amount would be recognized.

Answers

Ron would not be realizing any gain or loss on this transaction and no amount would be recognized.

In accounting, the recognition of gain or loss typically occurs when there is a difference between the amount realized from a transaction and the carrying value of the asset involved. In this case, since only cash has been transferred, there is no difference between the amount realized and the carrying value of the asset. As a result, there is no gain or loss to be recognized. This means that Ron would not report any financial impact from the transaction in terms of a gain or loss on his financial statements. It's important to note that the specific circumstances of the transaction should be considered to determine if any other accounting treatment or disclosure is necessary.

Learn more about transaction here: brainly.com/question/24730931

#SPJ11

Write an essay using christian
world view about managing stress in the workplace.

Answers

As per Christian worldview, managing stress is crucial to maintain physical, emotional, and spiritual well-being.

Stress can be encountered in every phase of life, especially in the workplace, where people tend to work in high-pressure conditions. Therefore, it is essential to manage stress effectively to avoid burnout and maintain healthy working relationships.

The Christian worldview is focused on the belief that human beings are created in the image of God and have been given a purpose to fulfill. This purpose includes serving and glorifying God in all aspects of life, including the workplace. The Christian worldview emphasizes the importance of developing positive relationships with others, including coworkers, supervisors, and clients.

These relationships are essential for a healthy and productive workplace, and stress can be a significant hindrance to developing these relationships. Thus, managing stress in the workplace is crucial for maintaining positive relationships with others. To manage stress in the workplace, one must focus on building positive relationships with coworkers, supervisors, and clients.

To know more about Christian refer here : brainly.com/question/31578637

#SPJ11

Question 20 0.5 pts Which of the following statements creates an expressed warranty: O The sale of food or drink, whether to be consumed on or off the seller's premises, is a sale. When made by a merchant, a sale of food or drink carries the expressed warranty that the food is fit for its ordinary purpose, i.e., human consumption. O Tim goes to Hannah's Auto World and wants to buy a car. Hannah tells Tim that the Prius Hybrid is the absolute best car in the entire world. Tim buys it, and later learns that there are other cars considered better. Hannah created an express warranty. O Julia goes to Matt's Jewelry store to purchase diamonds, Julia sees a beautiful diamond tennis bracelet and asks Matt about it. Matt, the merchant, tells Julia it is an exquisite bracelet, with the top rated diamonds, "VVS" worth $25,000.00. Matt gives Julia a written appraisal, stating that the bracelet is "VVS" worth $25,000. Later, Julia finds out that the diamonds are only "VS" (a lower quality of diamonds). Matt, the merchant, created an express warranty. Tanner, a contractor, needs a truck with enough horsepower to pull a loaded heavy equipment trailer and the salesman knows of this particular purpose, but never states it directly to Tanner. When the salesman sells the contractor a particular truck, he has made an expressed warranty of fitness for a particular purpose, namely that the truck he has sold is indeed suitable for moving heavy equipment.

Answers

An expressed warranty is a guarantee or promise that a seller makes regarding the quality of a good or service.

This assurance is explicitly stated by the seller and can be in writing or oral form. The statement creates an expressed warranty: Tanner, a contractor, needs a truck with enough horsepower to pull a loaded heavy equipment trailer, and the salesman knows of this particular purpose, but never states it directly to Tanner. When the salesman sells the contractor a specific truck, he has made an expressed warranty of fitness for a particular purpose, namely that the truck he has sold is indeed suitable for moving heavy equipment.

Expressed warranties are essential for buyers and sellers since they give assurance to the purchaser that they are getting what they pay for. If the good or service fails to fulfill the requirements, then the seller is responsible for ensuring that the product is returned and replaced or the service is redone. This can be an expensive process for the seller, which is why most companies strive to offer high-quality goods and services that meet the needs of their consumers.

to know more about warranty visit:

https://brainly.com/question/31793570

#SPJ11

A good that is both rival and exclusive is called: a. a private good b. a public good c. a quasi-private good d. an external good e. an open access good

Answers

Answer : A good that is both rival and exclusive is called a Private good

Explanation :

A good that is both rival and exclusive is called a Private good. Private goods are considered to be both exclusive and rivalrous. They are exclusive in the sense that only a few people can enjoy them, and rivalrous in the sense that one person's consumption prevents others from enjoying them.

As a result, these types of goods are in high demand and can be sold at a price that reflects their value. They are often created by the private sector and are typically available to those who can afford to pay for them.

Private goods are produced and distributed in response to market signals, and the market is the main mechanism for allocating these goods.In a free market economy, individuals can purchase private goods based on their needs and preferences. Prices, supply, and demand are determined by the market, and businesses compete to provide the best goods and services to consumers.

Because private goods are exclusive and rivalrous, they are not considered to be public goods. A public good, on the other hand, is non-excludable and non-rivalrous, which means that they are available to everyone and one person's consumption does not reduce the amount available for others.

Learn more about private goods here https://brainly.in/question/3269337

#SPJ11

number 22
22) E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 7 years from now. If the market requires a 10 percent return on this investme

Answers

If the market requires a return of 4.4 percent on this investment, $146.58, a share of preferred stock cost today.

Bonds and preferred stock are both susceptible to changes in interest rates. Interest rates and preferred stock prices are inversely correlated. The value of the preferred stock decreases when interest rates rise and increases when rates lower.

Given information is

dividend of $147 years10 percent return on this investment

Present value is:

Preferred stock = dividend of $14

Preferred stock = $14 / 0.10

Preferred stock = $140

Learn more about on preferred stock, here:

https://brainly.com/question/29739867

#SPJ4

Your question is incomplete, but most probably the full question was.

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $14 in perpetuity, beginning 7 years from now. If the market requires a 10 percent return on this investment, how much does a share of preferred stock cost today.

Consider the following cases and indicate for each case the direction and amount of changes in NX and NCO for the U.S. (e.g. NX decreases by $2, NCO increases by $3, etc.). Please circle your final numerical answers and explain how you arrived at the numerical answers 1. The Norwegian government uses S500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. b. A department store chain in Japan uses yen to purchase 500,000 U.S. dpllars from a U.S. bank. It then uses these dollars to buy DVDs from a U.S. filmmaker. c. A U.S. bank loaned a Canadian oil company 1 million U.S. dollars. The Canadian company then used the entire loan to buy mining equipment from a U.S. company

Answers

a. Norway is using U.S. dollars to make this transaction so the U.S. liability to the rest of the world (NCO) will not change. b. U.S. exports will decrease, and hence the U.S. net export (NX) will decrease by $500,000. As the Japanese store chain is using U.S. dollars to purchase goods, it means that U.S. assets owned by Japan will increase, so NCO will increase by $500,000.

a. The Norwegian government uses S500,000 of previously obtained U.S. dollars to buy $500,000 of police cars from a U.S. company. Answer: NX = +500,000, NCO = 0

In this scenario, Norway is using $500,000 to purchase goods from the U.S. So, it means that U.S. exports will increase, and therefore the U.S. net export (NX) will increase by $500,000.

b. A department store chain in Japan uses yen to purchase 500,000 U.S. dollars from a U.S. bank. It then uses these dollars to buy DVDs from a U.S. filmmaker. Answer: NX = -500,000, NCO = +500,000Explanation:In this scenario, the Japanese store chain is buying $500,000 worth of DVDs from the U.S. Using Yen, it first purchased dollars and then used these dollars to make the purchase.

c. A U.S. bank loaned a Canadian oil company 1 million U.S. dollars. The Canadian company then used the entire loan to buy mining equipment from a U.S. company. Answer: NX = 0, NCO = +1,000,000

In this scenario, the Canadian company is using $1,000,000 to buy mining equipment from the U.S. This means that U.S. exports will increase by $1,000,000, so U.S. net export (NX) will increase by $1,000,000. However, as the U.S. bank has loaned $1,000,000 to the Canadian company, it means that U.S. assets owned by Canada will increase, and hence the U.S. liability to the rest of the world (NCO) will increase by $1,000,000.

For more about transaction:

https://brainly.com/question/24730931


#SPJ11

derivative instruments acquired to hedge exposure may be classified as either a fair value hedge or a cash flow hedge. distinguish between the two types of hedges.

Answers

To lessen the impact of anticipated changes in the fair value of an asset or liability, fair value hedges are used. With this sort of hedge, profits or losses are recognised right away.

In the income statement and the derivative instrument and the hedged item are updated to reflect changes in fair value brought on by particular risk exposures.

Contrarily, cash flow hedges work to control the volatility of upcoming cash flows resulting from planned transactions or obligations. Any effective element of the hedge is initially recorded in other comprehensive income (OCI) and then reclassified to the income statement when the hedged transaction has an impact on earnings. The derivative instrument in a cash flow hedge is utilised to offset the cash flow risk of the hedged item.

Learn more about fair value here:

https://brainly.com/question/29617874

#SPJ11

The Global reporting initiative’ s GRI social standards pertain to the following topics:
A. Diversity B. Labeling C. Profit Sharing D. Both A & B only or E. A & C only

Answers

The Global Reporting Initiative's (GRI) social standards pertain to option D. Both A & B only.

The GRI social standards focus on reporting and addressing social impacts and aspects of sustainability. Among the options provided, diversity and labeling are the topics covered by GRI's social standards.

A) Diversity: The GRI social standards encourage organizations to report on diversity-related aspects, such as equal opportunities, inclusion, and non-discrimination. This includes aspects related to gender, age, ethnicity, disability, and other dimensions of diversity.

B) Labeling: The GRI social standards also address labeling practices, particularly in terms of product labeling, disclosure of ingredients, certifications, and other relevant information related to product safety, environmental impact, and social responsibility.

C) Profit Sharing: While profit sharing is an important topic within the realm of corporate social responsibility, it is not specifically covered by GRI's social standards.

Therefore, the correct answer is D. Both A & B only, as diversity and labeling are the topics addressed by GRI's social standards.

To learn more about Global Reporting Initiative click here

brainly.com/question/31783454

#SPJ11

Why are segmental financial reporting systems useful to maintain effective decentralisation ?

Answers

Segmental financial reporting systems play a crucial role in maintaining effective decentralization by providing managers with the information and autonomy they need to make informed decisions, allocate resources efficiently, and drive performance improvements within their respective segments.

Segmental financial reporting systems are useful in maintaining effective decentralization because they provide valuable information and insights into the financial performance of different segments or divisions within an organization. By breaking down financial results by segments, such as product lines, geographic regions, or business units, decentralization becomes more effective as decision-making authority can be delegated to the managers responsible for each segment.

Segmental financial reporting allows managers to assess the profitability, costs, and revenues associated with each segment independently. This enables them to make informed decisions regarding resource allocation, pricing strategies, cost controls, and performance evaluations within their respective segments.

To know more about financial reporting click here

brainly.com/question/13466343

#SPJ11

a pastrami sandwich is an example of which kind of good? choose one: a. club good b. private good c. public good d. common-resource good

Answers

A pastrami sandwich is an example of a private good. The correct option is B.

Private goods are rivalrous and excludable. They are characterized by the ability to exclude others from consuming them, and one person's consumption reduces the availability of the good for others. A pastrami sandwich fits this description because once it is consumed by one person, it is no longer available for others to consume.

Additionally, it is possible to exclude others from accessing or consuming the sandwich by, for example, purchasing it or consuming it in a private space. Therefore, a pastrami sandwich aligns with the characteristics of a private good.

The correct option is B.

To know more about private good, click here.

https://brainly.com/question/14896136

#SPJ4

Is tourism destroying the city of Venice?
How?

Answers

Venice is one of the most popular tourist destinations globally. However, Venice's success as a tourist destination has brought to the surface the negative consequences that tourism can have on a city.

Tourism has had an overwhelmingly negative impact on the city of Venice. Tourism has caused a considerable increase in the number of visitors to Venice, resulting in a rise in rental prices, environmental degradation, and cultural commodification that is destroying the city.

As a result of the high number of visitors to Venice, environmental degradation has become a problem. The city's delicate and fragile environment is being harmed by the considerable number of tourists

Learn more about tourism at:

https://brainly.com/question/14778837

#SPJ11

Oriole Company makes three models of tasers. Information on the three products is given below.
Tingler Shocker Stunner
Sales $302,000 $5496,000 $200,000
Variable expenses 145,600 196,000 141,300
Contribution margin 158,400 300,000 58,700
Fixed expenses 118,768 224,032 92,800
Net income $24,872 $85,531 $(27,003)
Fixed expenses consist of $294,400 of common costs allocated to the three products based on relative sales, and additional fixed expenses of $29, 300 (Tingler), $79, 100 (Shocker), and $34,000 (Stunner). The common costs will be incurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out.
James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income.
a. Compute current net income for Cawley Company.
b. Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint - Allocate the $294,400 common costs to the two remaining product lines based on their relative sales.) (Round answers to the nearest whole dollar)

Answers

a. The current net income for Oriole Company is $83,400.

b. Total Net Income = Net Income (Tingler) + Net Income (Shocker)

Using the given data, you can calculate the net income by product line and in total for Oriole Company if the Stunner product line is discontinued.

a. To compute the current net income for Oriole Company, we need to sum up the net income for each product line:

Net Income (Tingler) = $24,872

Net Income (Shocker) = $85,531

Net Income (Stunner) = $(27,003)

Total Net Income = Net Income (Tingler) + Net Income (Shocker) + Net Income (Stunner)

Total Net Income = $24,872 + $85,531 + $(27,003)

Total Net Income = $83,400

b. We need to reallocate the common costs based on relative sales:

Relative Sales (Tingler) = Sales (Tingler) / (Sales (Tingler) + Sales (Shocker))

= $302,000 / ($302,000 + $5,496,000)

≈ 0.052

Relative Sales (Shocker) = Sales (Shocker) / (Sales (Tingler) + Sales (Shocker))

= $5,496,000 / ($302,000 + $5,496,000)

≈ 0.948

Allocated Common Costs (Tingler) = Relative Sales (Tingler) * Common Costs

= 0.052 * $294,400

Allocated Common Costs (Shocker) = Relative Sales (Shocker) * Common Costs

= 0.948 * $294,400

Net Income (Tingler) = Net Income (Tingler) + Allocated Common Costs (Tingler) - Additional Fixed Expenses (Tingler)

Net Income (Shocker) = Net Income (Shocker) + Allocated Common Costs (Shocker) - Additional Fixed Expenses (Shocker)

Total Net Income = Net Income (Tingler) + Net Income (Shocker)

To know more about current net income, here

brainly.com/question/23178043

#SPJ4

If for a particular market a drop in price from $100 to $50 causes quantity supplied to decrease from 3 million to 2 million units we can say that supply: a. is elastic b. is inelastic c. is perfectly inelastic d. is perfectly elastic e. has a price elasticity whose numerical value is exactly equal to one

Answers

Supply elasticity: It is a quantitative way to represent the amount of percentage change in the quantity of goods supplied with respect to its price change. The answer to the given question is option (a) is elastic.

It shows the behavior of sellers' total supply to changes in the price of goods.A product with elastic supply has a large change in supply with a small change in the price of the product. A product with inelastic supply has a small change in supply with a large change in the price of the product.

The given situation states that when the price falls from $100 to $50, the quantity supplied decreases from 3 million to 2 million. The percentage change in price is 50% and the percentage change in quantity supplied is 33.33%. Therefore, the numerical value of supply elasticity is greater than 1 which indicates that the supply of this particular market is elastic.

To know more about Supply elasticity visit:

https://brainly.com/question/28192591

#SPJ11

Required information [The following information applies to the questions displayed below.] Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June

Answers

Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are sold to yield 10%. Hillside uses the effective-interest method to amortize bond premium or discount. On July 1, 2022, Hillside calls all of the bonds at 102.

Requirements1. Prepare the journal entry to record the sale of the bonds on January 1, 2021.2. Prepare an amortization table through December 31, 2022 (three interest periods) for the bond premium or discount. (Round answers to nearest dollar.)3. Prepare the journal entry to record the first semiannual interest payment on June 30, 2021.4. Prepare the journal entry to record the redemption of the bonds on July 1, 2022.1.

Therefore, the journal entry to record the first semiannual interest payment on June 30, 2021, is:DebitBond interest expense$49,500.00CreditCash$49,500.004. On July 1, 2022, Hillside calls all of the bonds at 102.

In other words, interest rate is the amount that a lender charges a borrower for the use of money or assets. It is usually expressed as a percentage of the principal amount borrowed or lent. The interest rate can be fixed or variable, meaning that it may remain the same throughout the loan or may fluctuate depending on the terms of the loan agreement. In the given scenario, Hillside issues bonds that pay a fixed interest rate of 9%. The bonds are sold to yield a higher interest rate of 10%.

This means that investors are willing to pay a premium to purchase the bonds because the stated interest rate is higher than the market rate. As a result, Hillside records a bond premium at issuance, which is gradually amortized over the life of the bond using the effective-interest method.

To know more about effective-interest visit :

https://brainly.com/question/31000398

#SPJ11

The large parts of a playground A-frame (from which to hang a swing or glider) consist of a ridge pole, four legs, and two side braces. Each pair of legs fastens to the ridge with one fastener set. Each side brace requires two fastener sets for attachment to the legs. Each fastener set includes one zinc-plated bolt, one lock-washer, and one nut. There is one order outstanding, to make 90 frame kits. There are 200 legs in inventory. There are no other large items in inventory, and no scheduled receipts. Fasteners are available from the small parts area.

a. Draw the product structure tree
b. Calculate the net requirements to fulfill the outstanding order.

Answers

The net requirements to fulfill the outstanding order.

90 Ridge Poles

360 Legs

180 Side Braces

360 Fastener Sets (which includes 360 Zinc-plated Bolts, 360 Lock-washers, and 360 Nuts)

a. Product Structure Tree:

Playground A-Frame

Ridge Pole

Legs (4 per frame)

Side Braces (2 per frame)

Fastener Sets (1 per side brace)

Zinc-plated Bolt (1 per fastener set)

Lock-washer (1 per fastener set)

Nut (1 per fastener set)

b. To calculate the net requirements to fulfill the outstanding order, we need to consider the components required for each A-frame kit:

For each A-frame kit:

Ridge Pole: 1

Legs: 4

Side Braces: 2

Fastener Sets: 4 (2 for each side brace)

Zinc-plated Bolts: 4

Lock-washers: 4

Nuts: 4

Outstanding Order:

Number of A-frame kits: 90

Net Requirements:

Ridge Pole: 1 * 90 = 90

Legs: 4 * 90 = 360

Side Braces: 2 * 90 = 180

Fastener Sets: 4 * 90 = 360

Zinc-plated Bolts: 4 * 90 = 360

Lock-washers: 4 * 90 = 360

Nuts: 4 * 90 = 360

Based on the outstanding order for 90 frame kits, the net requirements are as follows:

90 Ridge Poles

360 Legs

180 Side Braces

360 Fastener Sets (which includes 360 Zinc-plated Bolts, 360 Lock-washers, and 360 Nuts)

Learn more about   receipts Here-  

https://brainly.com/question/30237264

#SPJ4

Manam, Sabah and Fatima are partners with capital balances of $40,000, $60,000 and $50,000 respectively. They find that Atrah, a now partner, is a talented engineer with an experience useful for the c

Answers

The partners have adjusted their capital balances to admit Atrah as a new partner based on the capital ratio method

Manam, Sabah, and Fatima are partners in a business with capital balances of $40,000, $60,000, and $50,000, respectively. They have identified Atrah as a talented engineer with valuable experience that would be useful for the company. They decide to admit Atrah as a new partner.

When a new partner is admitted to a partnership, there are different ways to allocate the new partner's capital and profits. One common method is the capital ratio method, where the new partner's capital contribution is based on their expected share of the partnership's profits.

In this case, let's assume that the partners agree to allocate profits based on the capital ratio. The capital ratio is calculated by dividing each partner's capital balance by the total capital of the partnership.

Total capital = $40,000 + $60,000 + $50,000 = $150,000

Capital ratio for Manam = $40,000 / $150,000 = 0.2667

Capital ratio for Sabah = $60,000 / $150,000 = 0.4000

Capital ratio for Fatima = $50,000 / $150,000 = 0.3333

To admit Atrah as a partner, the partners would agree on Atrah's capital contribution. Let's say Atrah will contribute $70,000 as capital. Atrah's capital ratio would then be:

Capital ratio for Atrah = $70,000 / ($150,000 + $70,000) = 0.3182

The partners would adjust their capital balances based on the new capital contributions:

Manam's new capital balance = $40,000 * (1 - 0.2667) = $29,332

Sabah's new capital balance = $60,000 * (1 - 0.4000) = $36,000

Fatima's new capital balance = $50,000 * (1 - 0.3333) = $33,335

Atrah's capital balance = $70,000

Now, the partners have adjusted their capital balances to reflect the admission of Atrah. They can proceed with sharing profits and losses based on the agreed-upon capital ratios.

It's important to note that the specific terms of the partnership agreement may vary, and the partners should consult with their legal and financial advisors to determine the most appropriate method for admitting a new partner and allocating capital and profits in their specific situation.

In summary, the partners have adjusted their capital balances to admit Atrah as a new partner based on the capital ratio method. This method ensures that each partner's capital contribution and share of profits are proportionate to their ownership interest in the partnership.

for more such question on capital visit

https://brainly.com/question/25715888

#SPJ11

At December 31, 2019, Marigold Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 109,415 shares Common stock. $5 par, 4,029,120 shares $10,941,500 20,145,600 During 2020, Marigold did not issue any additional common stock. The following also occurred during 2020. Income from continuing operations before taxes $22,864,700 Discontinued operations (loss before taxes) $3,429,100 Preferred dividends declared $1,094,150 Common dividends declared $2,185,000 Effective tax rate 35 % Compute earnings per share data as it should appear in the 2020 income statement of Marigold Corporation (Round answers to 2 decimal places, es. 1.48) Earnings Per Share Net Income /(Loss) 12633194 Income from Continuing Operations Discontinued Operations

Answers

The earnings per share data as it should appear in the 2020 income statement of Marigold Corporation is $2.25 EPS net income / (loss); $12,633,194 income from continuing operations; and $3,429,100 loss from discontinued operations

The calculation of earnings per share (EPS) data as it should appear in the 2020 income statement of Marigold Corporation is as follows:

Calculation of EPS data:

Net Income = Income from continuing operations - Income tax on continuing operations - Discontinued operations

Income from continuing operations = $22,864,700 - ($22,864,700 × 35%) - $3,429,100= $11,234,005

Net Income = $11,234,005 - $1,094,150= $10,139,855

EPS calculation for Common stock:

There was no change in the common stock during the year 2020. Therefore, the number of shares of common stock outstanding at the end of 2020 is the same as at the end of 2019.

Earnings available for common shareholders = Net Income - Preferred dividends= $10,139,855 - $1,094,150= $9,045,705

Average number of common shares outstanding= 4,029,120

Basic EPS= Earnings available for common shareholders / Average number of common shares outstanding= $9,045,705 / 4,029,120= $2.25 per share

Therefore, the earnings per share data as it should appear in the 2020 income statement of Marigold Corporation is:

$2.25 EPS net income / (loss)

$12,633,194 income from continuing operations

$3,429,100 loss from discontinued operations

Learn more about EPS at::

https://brainly.com/question/32243226

#SPJ11

Other Questions
describe one way in which the poster reflects the intellectual ideas of the period 1750-1900. In interval estimation, the t distribution is applicable only whena. the population has a mean of less than 30. b. the sample standard deviation (s) is given instead of the population standard deviation (). c. the variance of the population is known. d. the standard deviation of the population is known.e. we will always use the t distribution. Identify the item that best completes each of the descriptions below. 1. Asset 2. Equity 3. Account 4. Liability 5. Three a. Balance sheet accounts are arranged into. general categories. b. The owner' one gold nugget weighs 0.008 ounces. a second nuggt weighs 0.8 ounces. How many times as much as the first nugget does the second nugget weigh? two spherical objects have equal masses and experience a gravitational force of 85 n towards one another. their centers are 36 mm apart. determine each of their masses. Historically, many countries used to fix their currency to a set amount of ______ gold. Conocer means which of the following in Spanish:Get to Know.Visit.EnjoyTravel to. Read the passage: He attacked an innocent, defenseless child. This is an example of what technique?(A) anaphora(B) aphorism(C) loaded language(D) incorrect premises An n-year annuity-due will pay t at the beginning of year t for t=1,2,...,n (1 for year 1, 4 for year 2, 9 for year 3, etc.). The effective annual rate of interest is fixed at i. (a) Derive a formula for the present value PV(n) of this annuity at time 0 as a function of the term n and the discount factor v = (1 + i) only. [4] Hint: You may use the following equalities: m m-1 m m (t+1)v = [(t+1)v+ + 2[tv + [v 1=0 1=0 1=1 1=0 Note: The formula should NOT include sums or products of the form n n x = x + x + + x or xxxxn j=1 j=1 For example, to express as a function of n and v, the right answer is 1-v not a= [w=1+v+v +...+v-1 9 1-v j=0 (b) Verify the formula of PV(n) in part (a) for n=1 and n=2. (c) Prove the formula of PV (n) in part (a) by mathematical induction on n. Identify whether the following sentences are declarative, interrogative,imperative or exclamatory. Then, write the correct closing punctuation mark ineach of the boxes.exclamotary1. What a terrible crash it was2. Get this book from the stationery shop der3. How beautiful your rose garden is4.Ravi is the best dancer in our class5. Please stop drawing faces on my new book6. When does school reopen after the summer break7. Please turn down the volume of your music system8. Manu loves drawing pictures of all kinds of animals9. This is the cupboard where we keep the chalk and duster10. How many books did you take from the library this week11. Istanbul is the most important and popular city of Turkey How does tracking changes relate to sharing a workbook in Excel? Select an answer: A.You cannot share the workbook if you track changes. B.You must share the workbook to track changes. C.You must track changes to share the workbook. D.You cannot track changes if you share the workbook. briefly explain the differences between f , f-, hfr, and f cells. prairie soils (mollisols) are _______. a. poor in organic matter b. easy to cultivate and fertile c. poor in mineral nutrients d. difficult to cultiva Danamin Sdn.Bhd manufactures all kinds of sugar namely, caster sugar, brown sugar, cane sugar, fruit sugar and confectioners sugar. The manager is considering whether to buy or process one ingredient, material Y. The cost of manufacturing material Y is estimated to be:Direct material RM3,000Direct Labour RM900Variable overhead RM2,000Fixed Overhead RM5,000The material Y can be purchased from an outside supplier for RM8,000.The production of material Y requires 1,000 hours of a special machine which is now fully utilized to mix and process gula melaka. If production of material Y is undertaken, production of processed gula Melaka would be reduced by 5,000 kg resulting in a loss if revenue of RM3,000. The marginal costs of producing 5,000 kg of processed gula Melaka is RM2,000.Required:Should the company make or buy material Y? Show the computations. Which of the following is an idea reflect grit? prove that if A is a square matrix then AA^T and A+A^Tare symmetric A2 A3A4Row Total B_{1} 1226 4268148 B_{2} 14 2844 64 150 B_{3} 18 32 47 72169 Col Total 44 86 133 204 467 P(A_{2}) , or the complement of A, is approximately ) .184 B ) .816 C ) .057 ) .176 2Which best completes this summary of the first paragraph of The Dark Game?In 1861, many did not believe the Civil War would last long; however,Mark this and returnthe first shot was fired on April 12the fighting lasted four yearsover 600,000 soldiers diedFort Sumter was overtaken The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave. Besides, sir, we have no election. If we were base enough to desire it, it is now too late to retire from the contest. There is no retreat but in submission and slavery! Our chains are forged! Their clanking may be heard on the plains of Boston! The war is inevitableand let it come! I repeat it, sir, let it come.What does Henrys use of exclamatory remarks and repetition reveal about the speaker?A. They emphasize that he is willing to compromise on a solution.B. They explain why he feels that war against the British is necessary. C. They reveal that he has gathered a number of facts to support his argument.D. They show his strong emotional support for going to war against the British. 1/(x + 3) = (x + 10)/(x - 2) from least to greatest, the solutions are x = ? and x = ?