<span>What is the periodic interest rate of Melanie's investment?
How many compounding periods does Melanie's investment offer in a year? How about in 8 year?
Semiannually means that it is twice in a year, then:
- the number of compounding periods in a year is 2.
- the number of compounding periods in 8 years is 2 * 8 = 16
What expression can Melanie write to figure out how much her investment will be worth in 8 years?
Use the formula : F = P * ( 1+ r/n) ^ (n*t)
P is the initial investment = $12,000
n = the number of periods per year, which is 2
</span>
<span><span>r is the yearly rate = 4.8% = 0.048
t is the number of years, which is 8.
Then, the equation is F = $12,000 * ( 1 + 0.048/2) ^ (8*2) =
= $12,000 ( 1+ 0.024)^ 16 = $12,000 (1,024)^16
</span>
How much will Melanie's investment be worth in 8 years?</span>
Just use the calculator: 12,000 (1,024)^16 = $17,538
Answer:
Value of the company = $124,019.61
Explanation:
<em>The value of then firm is the present value of its expected future cash inflow discounted at its required rate of return. </em>
<em>In this case, the earnings available to ordinary shareholders becomes the annual cash inflow while the appropriate discount rate is the cost of equity</em>.
The absence of debt in the company's capital structure implies that the cost of equity would be the appropriate discount rate.
And the value of the company would be determined as follows
Value of the company = Earnings after tax/Cost of equity
Earnings after tax = EBIT × (1-Tax rate)= 25,300×(1-0.25)=18,975
Cost of equity = 15.3%
Value of the company = 18975
/0.153= 124,019.6078
Value of the company = $124,019.61
Answer:
The list is follows:
a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption
b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle
c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle
d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption
Answer:
Explanation:
The national debt includes ;Treasury bonds bought by a little old lady in Peoria
The public debt includes ;Treasury bonds bought by the Social Security Administration, First National Bank of Dallas the government of China First National Bank of Dallas a citizen of Germany the government of China a citizen of Germany a little old lady in Peoria the Social Security
Administration Internally held debt includes; bonds owned by the Social Security, Administration First National Bank of Dallas the government of China a citizen of Germany a little old lady in Peoria.
Externally held debt includes bonds owned by the Social Security Administration First National Bank of Dallas the government of China a citizen of Germany a little old lady in Peoria
