Answer:
$129.35
Explanation:
Here is the full question :
What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $27
I = 10%
PV = $129.35
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
The correct answer is option d.
Explanation:
Unfavorable weather in Florida has adversely affected the production of Florida oranges. The decline in production has led to reduced supply of Florida oranges. This decrease in supply will lead to an increase in the price.
As Florida oranges and California oranges are substitutes, with the increase in the price of Florida oranges will lead to an increase in the demand for California oranges as people will prefer the cheaper substitute.
Answer:
The below statement marks the company's vision.
In a period of 10 years, he states that the foundation envisions a broad and impartial society that respects and encourages children and actively enables people’s participation.
Explanation:
Companies tend to summarize their goals and objectives in mission and vision statements. Both of these serve different purposes for a company but are often confused with each other.
<u>Vision of a company/organisation</u>
- Vision statement outlines what a company wants to be in the future.
- The Vision Statement focuses on the future
- It is a statement that is a source of inspiration and motivation.
- It describes not just the future of the organization but the future of the industry or society in which the organization hopes to effect change.
Relevance to the given scenario is that in the identified statement, Micheal has clearly demonstrated, what he sees for the foundation and how it wants to impact the foundation's stakeholders.
The vision of the foundation is as follows:
<em>In a period of 10 years, he states that the foundation envisions a broad and impartial society that respects and encourages children and actively enables people’s participation.</em>
<em></em>
Vision is different from the mission:
<u>Mission statement:</u>
The Mission Statement concentrates on the present; it defines the customer(s), critical processes and it informs you about the desired level of performance.
The mission of the foundation is as follows:
<em>The purpose of the foundation is to maximize the effect of public participation and welcome the recognition for volunteering.</em>
<em></em>
Answer:
$1.7; 44 times
Explanation:
a) EPS(20X1):
= Earnings after taxes / Number of shares
= $340,000 / 200,000
= $1.7
P/E ratio(20X1):
= Price / EPS
= $74.80 / $1.7
= 44 times
EPS(20X2):
= Earnings after taxes / Number of shares
= $378,000 / 200,000
= $1.89
P/E ratio(20X2):
= Price / EPS
= $83.00 / $1.89
= 43.92 times
12000*12= 14400 for a year
