Answer:
highest relative value highest dollar
Explanation:
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the higher the metric is, the higher the valuation of the firm
price to earning ratio (P / E) = market value per share / earnings
The higher the P/E, the higher the relative value of the firm relative to other firms. This is because investors are confident about the prospects of growth of the firm and are willing to pay a higher price for the stock of the company
Types of P/E ratio
1. trailing p/e - it is calculated by dividing current share price by the earnings per share for the past 12 months
2. forward p/e - it is calculated by dividing current share price by the estimated per share earnings for the next 12 months
Answer:
$511,667
Explanation:
The computation of the depreciation expense for 2019 and 2020 is shown below:
= (Purchase price - residual value) ÷ (useful life)
= ($10,500,000 - $2,500,000) ÷ (25 years)
= ($8,000,000) ÷ (25 years)
= $320,000
The depreciation in this method is the same for the rest of the useful life
Now the book value for 2021 would be
= Purchase price - depreciation for 2 years
= $10,500,000 - $320,000 × 2
= $9,860,000
Now the depreciation for 2021 would be
= ($9,860,000 - $650,000) ÷ 18 years
= $511,667
Answer:
This question is business question so I will answer it from business perspective. The least that I can do is offer her a one year package with an advance of $50. The monthly installment along with the interest that she will pay would be:
Monthly Installment including interest = (Amount Due/12months) + (Outstanding Amount * Interest Rate) ....Eq1
So I assume the interest rate is 5% and as we know the outstanding amount is $150.
By putting the values, we have:
Monthly Installment including interest = ($150/12months) + ($150 * 5%)
= $12.5 + $7.5 = $21 per month
Now the outstanding amount for the second month = $150 - $12.5 = $137.5
Now we will use this new outstanding amount to calculate the monthly installments including the interest by putting the values in the equation 1. Similarly for the next coming months the installments would be calculated.
Answer:
The amount that has to be deposited today is $6205.63
Explanation:
The given parameters are;
The annual interest rate for the first 5 years = 4 percent
The annual interest rate for the next 4 years = 4.6 percent
The annual interest rate for the final 8 years = 5.3 percent
Let the amount deposited be X, we have;
X × (1 + 0.04)⁵ + X × (1 + 0.04)⁵×(1.046)⁴ + X × (1 + 0.04)⁵×(1.046)⁴ ×(1.053)⁸ = $30,250
X ((1.04)^5 + (1 + 0.04)^5×(1.046)^4 + (1 + 0.04)^5×(1.046)^4 ×(1.053)^8) = $30,250
X × 4.875 = $30,250
X = $30,250/$4.875 = $6205.63
The amount that has to be deposited today = $6205.63.
Answer:
YTM 5.2% present value: $1,023.1644
YTM 1% present value: $1,427.2169
YTM 8% present value: $830.1209
YTM 8% present value: $515.7617
Explanation:
YTM we will calculate the present value of the coupon payment
andthe maturity at each YTM rate given:
The coupon payment present value will be the present value of an ordinary annuity
Coupon payment 28 (1,000 x 2.75%)
time 20 (10 years x 2 payment per year)
rate 0.026 (YTM over 2 as the payment are semiannually)
PV $424.6800
The present value of the maturity will be the present value of a lump sum:
Maturity 1,000.00
time 20.00
rate 0.026
PV 598.48
PV c $424.6800
PV m $598.4843
Total $1,023.1644
Now, we will calculate changin the YTM the concept and formulas are the same, just the rate is diffrent:
<u>If YTM = 1% </u>
PV c $522.1540
PV m $905.0629
Total $1,427.2169
<u>If YTM = 8%</u>
PV c $373.7340
PV m $456.3869
Total $830.1209
<u>If YTM = 15%</u>
PV c $280.3485
PV m $235.4131
Total $515.7617
