Answer= The entry to record this transaction would include:
A debit to Organization Expenses for $5,000.
A credit to common stock for $4,000 and Paid in capital in excess of par-Common Stock of $1,000
Explanation:
Common stock = 400 x $10= $4000
Accounts Debit Credit
Organisation expense $5,000
Common stock $4,000
Paid in capital in excess of par value
of common stock $1,000
( $5000 - $4000)
Answer:
$73.47
Explanation:
2.87 is the current dividend paid (D0)
Use that to find dividends for the next 5 years;
D1 = D0(1+g) ; g being the growth rate
D1 = 2.87(1.08) = 3.0996
D2 = 3.0996(1.08) = 3.3476
D3 =3.3476(1.08) = 3.6154
D4 = 3.6154(1.08) = 3.9046
D5 = 3.9046(1.08) = 4.2170
Next, find terminal cashflows;
D6 (yr 2024) = 4.2170 (1.03) = 4.3435
Find Present values of all the dividends using the 8% discount rate with the formula; PV = FV/
PV(D1) = 2.87
PV(D2) = 2.87
PV(D3) = 2.87
PV(D4)= 2.87
PV(D5)= 2.87
PV of terminal value; PV(D6 onwards) = 
= 59.1223
Sum up the PVs to find value per share;
$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47
Answer:
Correct Answer is (B)
Explanation:
We look at the objectives the government has in mind to achieve;
- stability in international trade
- stability in investment
Which of the listed policies will achieve these goals?
- the tool here used to control international trade is foreign exchange trading
- the tool used to control investment is interest rate
To achieve stability in these 2 indicators, both tools should be controlled. Thus the monetary policy & exchange rate regime to choose here is:
Controlling the interest rate in the country and imposing restrictions on foreign exchange trading.
Option (C) won't suffice because an independent monetary policy is necessary.
Answer:
$936.17
Explanation:
The current market price of the bond = present value of all coupon received + present value of face value on maturity date
The discount rate in all calculation is YTM (6.12%), and its semiannual rate is 3.06%
Coupon to received semiannual = 5.3%/2*$1000= $26.5
We can either calculate PV manually or use formula PV in excel to calculate present value:
<u>Manually:</u>
PV of all coupon received semiannual = 26.5/(1+3.06)^1 + 26.5/(1+3.06)^2....+ 26.5/(1+3.06)^24 = $445.9
PV of of face value on maturity date = 1000/(1+6.12%)^12 = $490.27
<u>In excel:</u>
PV of all coupon received semiannual = PV(3.06%,24,-$26.5) = $445.9
PV of of face value on maturity date = PV(6.12%,12,-$1000) = 1000/(1+6.12%)^12 = $490.27
The current market price of the bond = $445.9 + $490.27 = $936.17
Please excel calculation attached
Answer:
$1.2 per mile
Explanation:
Computation of the variable cost per mile using the high-low method
Using this formula
Variable cost per mile = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)
Let plug in the
Variable cost per mile= (14,721 - 13,503)/(8,510 - 7,495)
Variable cost per mile= 1,218/1,015
Variable cost per mile=$1.2 per mile
Therefore the Variable cost per mile will be $1.2 per mile.
