The stock price today is B. $35.20.
To determine the stock price today, we need to calculate the present value of the future dividends using the Gordon growth model.
Given the dividend and growth rates, we can estimate the dividends for the next three years and then determine the constant growth rate dividends.
1. Calculate the dividends for the next two years:
Year 1: $2.55 * 1.15 = $2.9325
Year 2: $2.9325 * 1.10 = $3.22575
2. Estimate the dividend for the constant growth rate period starting from Year 3:
Year 3: $3.22575 * 1.037 = $3.34485
3. Calculate the present value of the dividends for Year 1 and Year 2:
PV(Year 1) = $2.9325 / (1 + 0.119) = $2.61997
PV(Year 2) = $3.22575 / \((1+0.119)^{2}\) = $2.57145
4. Determine the value of the stock from Year 3 onwards using the Gordon growth model:
Value = D3 / (required return - constant growth rate) = $3.34485 / (0.119 - 0.037) = $37.07839
5. Calculate the present value of the stock from Year 3 onwards:
PV(Value) = $37.07839 / \((1+0.119)^{2}\) = $29.58717
6. Add the present values to find the stock price today:
Stock Price = PV(Year 1) + PV(Year 2) + PV(Value) = $2.61997 + $2.57145 + $29.58717 = $34.77859
The stock price today is closest to option B, $35.20.
The question was incomplete, Find the full content below:
red sun rising just paid a dividend of $2.55 per share. the company said that it will increase the dividend by 15 percent and 10 percent over the next two years, respectively. after that, the company is expected to increase its annual dividend at 3.7 percent. if the required return is 11.9 percent, what is the stock price today?
A. $32.58
B. $35.20
C. $37.78
D. $10.00
E. $36.49
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mr. and mrs. king had only one casualty loss this year when a tornado (a federally declared disaster) damaged their home, decreasing its value by $70,000. the couple received a $48,000 reimbursement from their insurance company. compute the kings' itemized deduction for casualty losses if their agi was $98,200.
The kings' itemized deduction for casualty losses if their agi was $98,200 will be C) $12,080
$22,000 unreimbursed decrease in value − $100 floor − $9,820 (10% × AGI).
Any abrupt, unforeseen, or uncommon event, such as a flood, hurricane, tornado, fire, earthquake, or volcanic eruption, can cause damage to, destruction of, or loss of your property, which is known as a casualty loss. Normal wear and tear or progressive deterioration are not considered casualties.
When claiming a deduction for destroyed property, you must first determine the casualty loss by deducting the salvage value from the asset's adjusted basis before deducting any insurance proceeds from the outcome.
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An economy operating at a trough in its business cycle is by definition
experiencing deflation
experiencing inflation
in a recession
in an expansion
between a recession and an expansion
2. For two straight quarters, business inventories increase at a sharp rate. This most likely indicates
an expanding economy
a recovering economy
the beginning of a recession
an increase in inflation
a record unemployment rate
An economy operating at a trough in its business cycle is in a recession.
A trough represents the lowest point in the business cycle, indicating a period of economic contraction and decline. It is characterized by a decrease in economic activity, low levels of production and employment, and reduced consumer spending. During a trough, the economy experiences negative or slow growth, leading to a recessionary phase.
For two straight quarters, business inventories increasing at a sharp rate most likely indicates an expanding economy.
When business inventories increase at a significant pace, it suggests that businesses are producing more goods and accumulating stock to meet rising demand. This indicates a growing economy where consumption and production are on the rise. An increase in business inventories reflects increased confidence in future sales and overall economic growth.
Therefore, an economy operating at a trough is in a recession, and an increase in business inventories indicates an expanding economy.
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In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Disney is marketing a(n) ________
Answer:
Experience.
Explanation:
Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets so as to produce a desired response.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
A service organization can be defined as an assembly of people who are saddled with the responsibility of providing customer-oriented services rather than just making profit.
In Walt Disney's Magic Kingdom, customers can visit a fairy kingdom, a pirate ship, or even a haunted house. Thus, Disney is marketing an experience because they comprises of both a tangible and an intangible quality.
Which set of costs reflect the tradeoff of economic order quantity (EOQ)?
A. ordering and carrying costs
B.
fixed and variable costs
C. marginal and utility costs
D.
marginal and semi-variable costs
Por que se dice que emprender suele ser una decisión muy difícil quien la toma sabe que esta renunciando a la estabilidad que otorga un salario
Answer:
porque se dice que quiero tomar el siguiente
Which of the following statements regarding stakeholder analysis is true?
a) Stakeholders’ needs generally align.
b) For a public company, shareholders are the primary stakeholders, so the priority will always be on generating current profits.
c) Organizations need to determine which stakeholders they can disappoint.
d) Stakeholder groups operate independently, so each group should be analyzed in isolation.
Option b) For a public company, shareholders are the primary stakeholders, so the priority will always be on generating current profits is the correct answer regarding stakeholder analysis.
It is a true statement that reflects the shareholders' significance as a stakeholder group that is responsible for providing capital to an organization.An organization's stakeholders are individuals or groups who can have a significant impact on its operation and can be affected by its actions. Customers, employees, suppliers, government organizations, and others are examples of stakeholders.
Stakeholder analysis is the process of identifying, assessing, and prioritizing stakeholders based on their importance to the project and their level of influence on the project's success.
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Finally show the income effect of the relative change in income due to the change in price of pizza.
For the last two items (4 & 5) you don’t need to use numbers. Just show the points on the graph.""
PART 1 (17 points)
Income compensated budget constraint
Pizza and beer consumption for Bob.
Initial Budget: $75
Price Pizza: $15
Price Beer: $5
(2 points) Draw Bob’s budget line for pizza and beer with pizza on the horizontal axis.
(1 point ) What is the Y-intercept? (The Y-intercept is the point where the budget line crosses the Y-axis. Remember that Y-axis is the beer axis)
(1 point ) What is the slope of the budget line?
(1 point ) What is the X-intercept?
(2 points ) Suppose Bob chose to purchase 3 pizzas and 6 beers. Use the equation of Bob’s budget line to show that 6 and 3 is a point on the above budget line.
(2 points) Suppose the price of pizza drops to $10, while the price of beer remains $5 and Bob’s budget remains $75. In one drawing, redraw the original Budget line (where the price of pizza was $15) and draw a new budget constraint (I will refer to this later as Budget Line 2) where the price of pizza is $10. Your picture will have two budget lines with the second one being less steep than the original. (We will eventually draw a third budget line on this same picture)
(2 points) What are the Y-intercept (Beer), the slope, and the X-intercept (Pizza) for the new budget line?
(4 points) We are now ready to construct the income-compensated budget line. The income-compensated budget line is used to demonstrate how a consumer will react to a change of relative prices while holding purchasing power constant. To perform this task we use Bob’s original consumption bundle of 3 pizzas and 6 beers. We want to construct a budget line such that Bob can only afford to purchase 3 pizzas and 6 beers while the price of beer is $5 and the price of pizza is $10.
The income-compensated budget line is a line with the same slope as Budget Line 2 from above that crosses through the point (x = 3, y = 6). To solve for the income-compensated line you can use the slope intercept formula (Y = mX + b) where m is the slope and b is the Y-intercept. Simply plug in the slope from Budget Line 2 for m and then use x = 3 and y = 6 to solve for b. Once you have the equation for the income compensated budget line you can solve for the X-intercept by plugging in 0 for Y. Now add the income-compensated budget line to the drawing above making sure that the income-compensated budget line crosses through the point (x = 3, y = 6) which is also on the original budget line.
(2 points) At the new prices (pizza $10, beer $5) How much income does Bob need to purchase the original bundle of 3 pizzas and 6 beers?
PART 2 (12 points)
Suppose you have a Pizza and Beer budget of $60. The initial price of Pizza is $15 and the initial price of Beer is $5.
(2 points) Draw a budget line showing the different combinations of Pizza and Beer that can be consumed within the initial budget. (Hint: put pizza on the horizontal axis)
(2 points) Now suppose that the price of pizza drops to $10. Draw the new budget line to show the new combinations of pizza and beer that could be consumed.
(2 points) Suppose your initial point of consumption is 2 pizzas and 6 beers. Using this information draw a new budget constraint that keeps your relative income constant while changing the relative pricing of Pizza and Beer.
(3 points) Show the substitution effect of the change in price of pizza.
(3 points) Finally show the income effect of the relative change in income due to the change in price of pizza.
For the last two items (4 & 5) you don’t need to use numbers. Just show the points on the graph."
In this exercise, Part 1 focuses on Bob's consumption of pizza and beer with an initial budget, prices, and consumption bundle. It involves drawing budget lines, determining intercepts and slopes, and analyzing the impact of a price change on the budget constraint. Part 2 introduces a new budget with different prices and examines the substitution and income effects of a price change on consumption choices.
Part 1 begins with Bob's initial budget of $75, pizza price of $15, and beer price of $5. The budget line is drawn with pizza on the horizontal axis, and its y-intercept represents the quantity of beer Bob can afford. The slope of the budget line reflects the trade-off between pizza and beer. The x-intercept indicates the maximum quantity of pizza Bob can purchase given his budget. The consumption bundle of 3 pizzas and 6 beers is shown to lie on the budget line.
Next, a price change occurs where the price of pizza decreases to $10 while the price of beer remains $5. Two budget lines are drawn: the original budget line (with pizza price $15) and the new budget line (with pizza price $10). The y-intercept, slope, and x-intercept of the new budget line are determined.
To construct the income-compensated budget line, Bob's original consumption bundle of 3 pizzas and 6 beers is maintained. Using the slope-intercept formula, the income-compensated budget line is determined by plugging in the slope from the new budget line and the coordinates of the consumption bundle. This line is added to the graph, ensuring it intersects the original budget line at the consumption bundle point.
In Part 2, a new budget is introduced with $60 and initial prices of $15 for pizza and $5 for beer. The budget line is drawn to represent the feasible combinations of pizza and beer within the budget. The price of pizza then decreases to $10, and a new budget line is drawn to reflect the updated consumption possibilities.
Suppose the initial consumption bundle is 2 pizzas and 6 beers. A new budget constraint is constructed to maintain relative income while accounting for the price change. The substitution effect, depicting the change in consumption due to the price change alone, is shown. Finally, the income effect, representing the change in consumption due to the change in relative income resulting from the price change, is demonstrated on the graph.
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Of the following financial instrument, which one has the longest maturity?(a) A Treasury Bond(b) Commercial Paper(c) A Stock
The longest maturing bonds are Treasury bonds. They mature in a range of 20 to 30 years, with coupon payments made every six months. Therefore option A is the correct answer.
Treasury bonds, also referred to as T-bonds, are debt obligations that the United States government issues and unconditionally backs. With periodic interest payments and eventual principal repayment upon bond maturity, they effectively serve as loans from the general public to the government.
The three main types of Treasury securities are T-bonds, T-notes, and T-bills. The fixed-income market, a very liquid secondary market, is where all three are traded (more commonly known as the bond market). "Fixed income" refers to Treasury bonds that distribute a predetermined interest rate to investors every six months.
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The indirect approach to organizing negative messages opens with the reasons behind the bad news before presenting the bad news itself.
question 8 options:
true
false
It is a true statement that an indirect approach to organizing negative messages opens with the reasons behind the bad news before presenting the bad news itself.
What is an negative messages?This refers to a kind of letter, memo, news that conveys negative information which will likely to disappoint, upset or anger the reader, listener etc
However, the indirect approach of organizing these negative messages opens with the reasons behind the bad news before presenting the bad news itself.
Therefore, it is a true statement.
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Joe's company is looking to make a number of improvements. The firm would like to maximize potential volume and reserved instance (RI) discounts across multiple accounts and also apply service control policies on member accounts. Which service or tool can be used to gain these benefits
The service or tool that could be used for gaining the benefits should be AWS Orgs.
The information related to AWS Orgs is as follows:
AWS Organization should be an account management service. In this, there are multiple AWS accounts that should be consolidated for developing and managing. As an organization administrator, the accounts should be developed and the existing accounts should be invited for joining the organization.Therefore we can conclude that the service or tool that could be used for gaining the benefits should be AWS Orgs.
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A 6.60 percent coupon bond with 15 years left to maturity is priced to offer a yield to maturity of 7.4 percent. You believe that in one year, the yield to maturity will be 6.9 percent. What is the change in price the bond will experience in dollars?
Answer:
The price will increase by $44.67
Explanation:
Price of the bond now
Use following formula to calculate the price of the bond
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Where
F = Face value of the bond = $1,000
C = Coupon payment= $1,000 x 6.60% = $66
n = Number of periods = 15 years
Market Rate = 7.4% annually
( Assumptions:
Face value of the bond is $1,000
Coupon payments ares made annually )
Placing values in the formula
Price of the Bond = $66 x [ ( 1 - ( 1 + 7.4% )^-15 ) / 7.4% ] + [ $1,000 / ( 1 + 7.4% )^15 ]
Price of the Bond = $928.94
Now calculate the price after one year
Where
F = Face value of the bond = $1,000
C = Coupon payment= $1,000 x 6.60% = $66
n = Number of periods = 15 years - 1 = 14 years
Market Rate = 6.9% annually
( Assumptions:
Face value of the bond is $1,000
Coupon payments ares made annually )
Placing values in the formula
Price of the Bond = $66 x [ ( 1 - ( 1 + 6.9% )^-14 ) / 6.9% ] + [ $1,000 / ( 1 + 6.9% )^14 ]
Price of the Bond = $973.61
Change in price = $973.61 - $928.94 = $44.67
In order to improve the cash flow of the company, neal emerald decided to postpone depositing all employment taxes a few months ago. he told his sales manager, " i’ll pay up before the irs catches up with me." what risks does emerald face by not upholding his responsibility for the collection and payment of employment taxes? is this ethical if he indeed does pay before he gets caught? why or why not?
The correct answer to this open question is the following.
No, it is not ethical.
The risks that Emerald faces by not upholding his responsibility for the collection and payment of employment taxes is that, first of all, this is not correct. He has an obligation, a moral and a fiscal obligation to report on time the employment taxes. That is why his actions are not ethical although he indeed does pay before he gets caught. That decision could be a business decision to buy some time and trying t fix other problems, but a true leader does not need to cover things with wrongdoings. What can of example is he showing to his employees?
Later on, on another occasion, he won't have the moral authority to demand ethical behavior from his employees. He is not setting an example.
Gina has decided that she wants to be an auditor. What should she do in order to best prepare herself for this position?
A. Obtain experience in leadership and management
B. Gain a master of business administration degree
C. Gain a master of accountancy degree
D. Complete a one to two year supervised internship
Answer:obtain a bachelors degree in accounting
Explanation:
how has the right to education addressed to differently able persons?How far is it appropriate to keep such provision with view of justice?Present your logics.
Answer:
,
Explanation:
i think this is answer right
The KimTay database must combine data from all of its tables in order to print a(n) _____. -inventory report -invoice -sales rep directory -customer directoryAs Figure 1-1 shows, a KimTay invoice includes information that is stored in all five database tables: customer information, the sales rep's name, invoice number and date, purchased line items, and item descriptions
The KimTay database must combine data from all of its tables in order to print an invoice.
An invoice is a document that contains information about a customer's purchase, including the items purchased, the prices of the items, the total amount due, and other relevant details. In order to create an invoice, the KimTay database needs to combine data from all five of its tables, including the customer information table, the sales rep directory table, the inventory table, the invoice table, and the line item table.
By combining information from these tables, the database can generate an accurate and complete invoice for each customer transaction.
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Develop a marketing plan for a small business (either real or fictional).
Developed marketing plan for a small business is a fictional.
An example of a marketing plan. Based on the watch market's reputation and our strengths, General introduces the Spree watch. Half of the buyers of branded fashion watches are between the ages of 18 and he is 34. This group is our primary market segment, with more watch purchases per person than older watches.
A marketing plan is a document outlining a company's marketing activities over the coming period (usually his year). It outlines the marketing strategies and promotional and advertising activities planned for this period.
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JB Enterprises has $2.5 million of current assets and $1.5 million of current liabilities. Therefore, their current ratio is 1.67. What would the current ratio be if they decide to use $500,000 of cash to reduce current accounts payable
To determine a credit score, debt, available credit and total assets are all part of the
calculation. It is important to have the ability to calculate total assets to improve a credit
score. The Smith family has a net worth of $100,000 and liabilities equaling $67,000, what is
the amount of their assets?
$100,000
O $67.000
O $33,000
O $167,000
Answer:
Net assets of smith family = $167,000
Explanation:
Given:
Net worth of smith family = $100,000
Net liabilities of smith family = $67,000
Find:
Net assets of smith family
Computation:
Net assets = Net worth + Net liabilities
Net assets of smith family = Net worth of smith family + Net liabilities of smith family
Net assets of smith family = $100,000 + $67,000
Net assets of smith family = $167,000
State two ways in which trade unions could assist workers in addressing non compliance with working conditions
Ways in which change unions should assist workers in addressing noncompliance with operating conditions are the standard sports of alternate unions consist of supplying assistance and services to their contributors, collectively bargaining for better pay and conditions for all people, and running to enhance the excellent of public offerings, political campaigning, and commercial movement.
The definition of a worker is someone or animal that performs a particular or essential project or who completes duties in a certain way. someone who works in a store is an instance a retail employee. someone who works diligently on his homework for hours a day is an instance of a tough employee.
A person is normally classed as a 'worker' if: they have a contract or other association to do work or offerings personally for praise (a contract may be written or unwritten) their reward is for money or an advantage in type, for example the promise of a settlement or future paintings.
Workers are the people employed by using a selected organization or company. Manpower is all the employees available to paint for a business enterprise or USA. A colleague or co-employee is a person you figure with, mainly in the workplace.
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Castaway Company’s only product sells for $432 per unit. Data for its first year of operations follow. Prepare an income statement for the year assuming absorption costing. Direct materials $ 40 per unit Direct labor $ 56 per unit Variable overhead $ 12 per unit Fixed overhead $ 320,000 per year Variable selling and administrative expenses $ 36 per unit Fixed selling and administrative expenses $ 400,000 per year Units produced and sold 40,000 units
The income statement for the year, assuming absorption costing, shows a net income of $10,800,000. Note: This answer assumes that the variable selling and administrative expenses are related to the number of units sold.
The income statement for Castaway Company for the first year of operations, assuming absorption costing, can be prepared as follows:
Sales Revenue:
40,000 units sold x $432 per unit = $17,280,000
Cost of Goods Sold:
Direct materials:
40,000 units x $40 per unit = $1,600,000
Direct labor:
40,000 units x $56 per unit = $2,240,000
Variable overhead:
40,000 units x $12 per unit = $480,000
Fixed overhead:
$320,000
Total Manufacturing Cost:
$1,600,000 + $2,240,000 + $480,000 + $320,000 = $4,640,000
Gross Profit:
Sales Revenue - Cost of Goods Sold
= $17,280,000 - $4,640,000
= $12,640,000
Selling and Administrative Expenses:
Variable selling and administrative expenses:
40,000 units x $36 per unit = $1,440,000
Fixed selling and administrative expenses:
$400,000
Total Selling and Administrative Expenses:
$1,440,000 + $400,000 = $1,840,000
Net Income:
Gross Profit - Selling and Administrative Expenses
= $12,640,000 - $1,840,000
= $10,800,000
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what does full replacement mean? the insurance company will cover 100 percent of the cost of replacing the home if destroyed. the insurance company will replace your home, if destroyed.
Full replacement means that if your home is destroyed, the insurance company will cover the entire cost of replacing it.
This means that they will provide the funds necessary to rebuild the home to its original state, or if necessary, to build a new home in its place. Essentially, full replacement means that the insurance company will cover 100% of the cost of replacing your home if it is destroyed.
An insurance company is a financial institution that provides insurance policies to individuals or organizations in exchange for premium payments.
Insurance companies help individuals and businesses mitigate financial risks by offering protection against potential losses or damages in various areas of life, such as health, property, liability, or life.
Insurance companies play a crucial role in promoting financial security and stability by providing individuals and businesses with a means to protect themselves against potential risks and losses.
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Effects of Tariffs. Assume a simple world in which the U.S. exports soft drinks and beer to France and imports wine from France. If the U.S. imposes large tariffs on the French wine, explain the likely impact on the values of the U.S. beverage firms, U.S. wine producers, the French beverage firms, and the French wine producers.
Large tariffs on French wine will likely increase the value of U.S. beverage firms and U.S. wine producers, while decreasing the value of French beverage firms and French wine producers.
In this simple world, the U.S. exports soft drinks and beer to France and imports wine from France. When the U.S. imposes large tariffs on French wine, the price of imported wine will increase, making it more expensive for U.S. consumers.
This will lead to a decrease in demand for French wine, resulting in lower revenues for French wine producers and French beverage firms. On the other hand, U.S. wine producers will benefit from the tariffs as consumers may substitute French wine with domestically produced wine, increasing demand for their product.
This will result in higher revenues for U.S. wine producers. Similarly, U.S. beverage firms may see an increase in demand for their soft drinks and beer as consumers look for alternatives to the more expensive French wine.
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What functions would it be most important for a project management software program to have?
create spreadsheets to manage money , create lists of supplies, and update the project team
create calendars and schedules, manage project budgets, and enable file sharing
create images for storyboarding, collect project images, and enable file sharing
create to-do lists, manage schedules, and send automatic updates to the project team
Answer:
D. create to-do lists, manage schedules, and send automatic updates to the project team
Explanation:
Edge 2021
The most important function for a project management software program is to create to-do lists, manage schedules, and send automatic updates to the project team.
What is a Project?This comprises of series of tasks which must be completed in order to reach an outcome.
The project management software program makes it easier through creating to-do lists, managing schedules, and sending automatic updates to the project team.
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Question #5
Multiple Choice
include businesses that buy products or services from another business to help produce products or services for their own
business to sell.
O Consumer markets
O Industrial markets
O Markets
None of the above
Answer:
I think industrial markets
Some banks pay interest only on the minimum or smallest balance on deposit during an interest period. Helen Lamb had a balance of $783 in such an account on July 1. Annual interest is 2.7% compounded quarterly. She withdrew$170 on August 17 and deposited $200 on September 12. What was Helen’s minimum balance during the quarter?
Helen's minimum balance during the quarter was $613.
What is Minimum Balance in Account?According to the terms and conditions of the account agreement, a customer is required to keep the smallest amount of money in their account for a predetermined amount of time. This amount is known as the minimum balance in an account. Depending on the type of account and the bank's policies, the minimum balance can be set at a certain amount or it can change.
Plugging in the values, we get:
A = 783(1 + 0.027/4)^(4*(3/12))
A ≈ $791.13
So the balance at the end of the quarter, before the deposit, was about $791.13.
Next, we need to figure out the impact of the withdrawal and deposit:
August 17: Helen withdrew $170, leaving a balance of $783 - $170 = $613.
September 12: Helen deposited $200, bringing the balance to $613 + $200 = $813.
We can conclude that the minimum balance was $613 because the balance on July 1 was higher than the estimated balance at the end of the quarter, which was $791.13.
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if you own 15000 shares of stock of nike and it pays a dividend of $0.24 per share, then what is the total dividened you will receive
if you own 15000 shares of stock of Nike and it pays a dividend of $0.24 per share, the total dividend you will receive is $3,600.
To calculate the total dividend you will receive from your 15,000 shares of Nike stock, you need to multiply the number of shares you own by the dividend per share.
Total dividend = Number of shares x Dividend per share
In this case, you own 15,000 shares of Nike, and the dividend per share is $0.24. So, the total dividend you will receive is:
Total dividend = 15,000 x $0.24
Total dividend = $3,600
Therefore, you will receive a total dividend of $3,600 from your 15,000 shares of Nike stock, assuming the dividend remains the same for the entire period.
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Baako Ltd purchase motor vehicle as follows date 01/01/13 800,000$,01/01/13 400,000$,01/04/15 600,000. The company adopts straight line method of depreciation at the rate 10% per annum from the date of purchase separate account is prepared for provision for depreciation. On 30th June, 2014 the motor vehicle which was purchase on 1st July was sold for 24,000$. You are required to prepare (a) motor vehicle account for the years 2013,2014 and 2015. (b) motor vehicle disposal account.
Baako Ltd purchase motor vehicle as follows date 01/01/13 800,000$,01/01/13 400,000$,01/04/15 600,000. The company adopts straight line method of depreciation at the rate 10% per annum from the date of purchase separate account is prepared for provision for depreciation. On 30th June, 2014 the motor vehicle which was purchase on 1st July was sold for 24,000$. You are required to prepare (a) motor vehicle account for the years 2013,2014 and 2015. (b) motor vehicle disposal account.
Alex needs $16,000 in order to pay for their daughter's college education. They just received a substantial inheritance. If their daughter will start school in 11 years, how much should they put into an account today if their account earns a 1.6% interest rate and they can also save $44 per month? (Enter your answer as a positive number) $5,182.45 $7,287.82 $8,097.57 $4,939.52
The amount Alex should put into an account today is approximately $14,445.57. To calculate the amount Alex should put into an account today, we need to consider both the monthly savings and the interest earned.
Let's break it down step by step:
1. First, let's calculate the total amount saved through monthly contributions. Alex saves $44 per month, and their daughter will start college in 11 years. So, the total monthly savings over 11 years is 11 years x 12 months/year x $44/month = $5,952.
2. Next, let's calculate the interest earned on the account. The interest rate is 1.6%. To calculate the future value of an investment with compound interest, we can use the formula: \(FV = PV(1 + r/n)^(nt)\), where FV is the future value, PV is the present value, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years. In this case, the present value is the amount Alex needs, which is $16,000.
3. Now, let's plug in the values into the formula. \(FV = $16,000(1 + 0.016/12)^(12*11) ≈ $20,397.57.\)
4. To find the amount Alex should put into the account today, we subtract the total monthly savings from the future value: $20,397.57 - $5,952 ≈ $14,445.57.
Therefore, the amount Alex should put into an account today is approximately $14,445.57.
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Alex should put $11,212.18 into an account today to have enough money for their daughter's college education. So the correct answer is $11,212.18.
To calculate how much Alex should put into an account today, we need to consider the future value of the savings and the present value of the college expenses.
First, let's calculate the future value of the savings. Alex will save $44 per month for 11 years, which is a total of $44 * 12 * 11 = $5,808. This amount will earn interest at a rate of 1.6% annually.
Using the future value of an ordinary annuity formula, FV = P * [(1 + r)^n - 1] / r, where P is the monthly payment, r is the interest rate, and n is the number of periods, we can find the future value. Plugging in the values, we get FV = $5,808 * [(1 + 0.016)^11 - 1] / 0.016 = $7,287.82.
Now, let's calculate the present value of the college expenses. The desired amount is $16,000, and it will be needed in 11 years. Using the present value formula, PV = FV / (1 + r)^n, we can find the present value. Plugging in the values, we get PV = $16,000 / (1 + 0.016)^11 = $11,212.18.
Therefore, Alex should put $11,212.18 into an account today to have enough money for their daughter's college education.
So the correct answer is $11,212.18.
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What are five questions you should ask yourself to help you determine the type of health care coverage that is most important to you?
Cheap
Effective
Fast
Options
Safe
Name THREE benefits of being a for-profit business.
tax exemption
profit sharing (profit maximization)
swift expansion
innovation
The THREE benefits of being a for-profit business are:
profit sharing (profit maximization)swift expansioninnovationThe establishment of a for-profit business has some clear advantages: self-employment and financial rewards proportional to success.
What are the disadvantages of a for-profit business?The disadvantages of a for-profit business are Limited access to receive grants, and No tax deduction to donors. One big drawback of for-profit companies is that they are not generally eligible to receive foundation and government grants (with some exceptions)
Therefore, the correct answer is as given above
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