Answer:
Price to be paid today = $118.35
Explanation:
<em>The price of a share can be calculated using the dividend valuation model </em>
<em>According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return. </em>
The model can applied as follows:
PV of dividend = D×(1+r) ^(-n)
D- dividend , r - required rate , n- number of year
D- 9.25, r - 16%, n = 2
PV of dividend = 9.25 × (1.16)^(-2)= 6.9
PV of disposal value
PV of dividend = F × (1+r) ^(-n)
D- disposal value , r - required rate , n- number of year
PV of disposal value = 150 × (1.16)^(-2)= 111.47
Price to be paid today
Total present value = 6.9 + 111.47 = 118.35
Price to be paid today = $118.35
Answer:
The amount should Tamarisk report as its December 31 inventory is $252,000
Explanation:
The computation of the ending inventory is shown below:
= Stock on hand + goods purchased from Sheffield Corp + goods sold to Wild horse Co.
= $190,000 + $29,000 + $33,000
= $252,000
We considered all the amounts which are given in the question i.e FOB destination and FOB shipping point which is added to the physical inventory on hand.
Complete question Text:
Environmental recovery company RexChem Partners plans to finance a site reclamation project that will require a 4-year cleanup period. The company will borrow $1.8 million now to finance the project. How much will the company have to receive in annual payments for 4 years, provided it will also receive a final lump sum payment after 4 years in the amount of $800,000? The MARR is 10% per year on its investment
Answer:
<em>We are going to receive annual payment of $395,471</em>
Explanation:
We solve for the present value of the lump-sum today:
PRESENT VALUE OF LUMP SUM
Maturity 800,000.00
time 4.00
rate 0.1
PV 546,410.76
Now, we deduct this fromthe 1,800,000 loan:
1,800,000 - 546,410.76 = 1,253,589.24
this value will be the amount the yearly installment will ghave to pay.
<u><em>Installment of a present annuity </em></u>
PV 1,253,589.24 €
time 4
rate 0.1
C $ 395,470.805
Answer:
Company output will be maximized if Calvin makes all the decals and Hobbes makes all the chains.
-Calvin has a comparative advantage for making decals.
-Hobbes has a higher opportunity cost for making decals than Calvin.
Explanation: Each partner should focus on the task where he has a comparative advantage.
In the situation of Calvins: if someone has a comparative advantage in producing something, that means he also has a lower opportunity cost in practicing that object.
In the situation of Hobbes: if he has a higher opportunity cost for making decals, then Calvin has a lower opportunity cost for making decals.
<span>A simple, safe and easy way to reduce the cost of running your vehicle is to avoid the fast start and sudden stops. during the initial startup of the engine, the engine in the vehicle require the tires and vehicle to work harder to maintain with the road surface. The impact of the wheel to the road may cause wear in the long run and the injection of air into the engine for the combustion to occur may be too sudden. Not only your engines will wear in the long run, but also, you are harming yourself into a possible accident such as buildup of pressure causing it to blow up.</span>
