In January, Stripe, Inc. purchased 50 shares of its own $10 par value common stock for $20 per share. In March, Stripe sold 10 s
1 answer:
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Answer:
Explanation:
This acts as more of a discount price for such an estimation of such a fixed present price of a company. It is often used to analyze investments when it is supposed to measure the opportunity price of the company. It is then used by corporations as the obstacle limit.
Let the total cost of equity to be Re = 5% = 0.05.
Let the market value to be E = 65% = 0.65.
Let V to the total market cost that combined debt and equity = 1 .
Let the total price of debt to Rd = 10% = 0.1.
Let the debt to be D = 35% = 0.35.
Let the income tax rate to be Tc = 40% = 0.4.
Answer:
(a) Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9
(b) The firm's quick ratio after Nelson has raised the maximum amount of short-term funds is 1.34
Explanation:
Current assets = $1,750,000
Current liabilities = $700,000
Initial inventory level = $490,000
Current ratio = Current assets ÷ Current liabilities
= $1,750,000 ÷ $700,000 = 2.5
1.9 = (Current assets + ) ÷ (Current liabilities +
)
1.9 = ($1,750,000 + ) ÷ ($700,000 +
)
1.9 × ($700,000 + ) = ($1,750,000 +
)
$1,330,000 + = $1,750,000 +
= $1,750,000 - $1,330,000
= $466,666.67
Short-term debt can increase by a maximum of $466,666.67 without pushing its current ratio below 1.9
Quick ratio = (Current assets - Inventories) ÷ Current liabilities
= $937,500 ÷ $700,000
= 1.34
Answer:
A deposit of 36,922.02 dollars will be equivalent to the series of emergencies deposits of 2,000 starting today.
Explanation:
we need to know the future value of the emergencies deposit and then, calculate which lump sum can generate the same amount. As the deposit are done at the beginning It will be an annuity-due:
C 2,000
time 36 (3 years x 12 months per year)
rate 0.045
FV $180,082.6885
Now we calculate the lump sum which yield this amount as well:
Maturity $180,082.6885
time 36.00
rate 0.045
PV 36,922.02