Answer:
interest rate r = 6.78 %
Explanation:
given data
investment = $12,000
interest rate = 3.5 percent = 0.035
time = 5 year
interest rate = 7.9 percent = 0.079
time = next 15 year
to find out
What was your annual rate of return over the entire 20 years
solution
we get here interest rate as
interest rate r = ![[(1+r)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1](https://tex.z-dn.net/?f=%5B%281%2Br%29%5E%7Bt1%7D%20%2A%20%281%2Br%29%5E%7Bt2%7D%5D%5E%7B%5Cfrac%7B1%7D%7Bt1%2Bt2%7D%7D%20-%201)
...................1
here t1 is time period for first 5 year and t2 is time i.e next 15 year and r1 and r2 is rate
now put here value we get
interest rate r = ![[(1+)^{t1} * (1+r)^{t2}]^{\frac{1}{t1+t2}} - 1](https://tex.z-dn.net/?f=%5B%281%2B%29%5E%7Bt1%7D%20%2A%20%281%2Br%29%5E%7Bt2%7D%5D%5E%7B%5Cfrac%7B1%7D%7Bt1%2Bt2%7D%7D%20-%201)
interest rate r = ![[(1+0.035)^{5} * (1+0.079)^{15}]^{\frac{1}{5+15}} - 1](https://tex.z-dn.net/?f=%5B%281%2B0.035%29%5E%7B5%7D%20%2A%20%281%2B0.079%29%5E%7B15%7D%5D%5E%7B%5Cfrac%7B1%7D%7B5%2B15%7D%7D%20-%201)
interest rate r = 1.0678 - 1
interest rate r = 0.0678
interest rate r = 6.78 %
Answer:
The amount of money(in percentage) of her gross pay that Pebbles takes home as her net pay is 76.7% .
Explanation:
Gross pay can be defined as the amount of money that a employee earns during a period.
Net pay can be defined as the amount of money that a employee gets after some deductions have been made to the gross pay during a period.
Given information -
Gross pay - $1075
Net pay - $825
So the percentage of gross pay that Pebbles takes home as her net pay -
($825 / $1075) x 100
= 76.7%
Answer:
Earnings Per share = $0.83
Diluted Earnings per share = $0.71
Explanation:
Basic Earnings per share is how much each common stock share earns in profits and Diluted Earnings includes the options and bonds in its calculations for outstanding shares
formulas
Earnings Per share = (net income - Preferred stock dividends)/ outstanding number of shares
= $150/180
= $0.83
Diluted Earnings per share = (net income - Preferred stock dividends)/ outstanding number of shares
= $150/210
= $0.71
Outstanding number of shares in millions
opening 200
minus treasury stock - 24
issued stock 4
Basic outstanding shares = 180 shares
plus share Options 30
Diluted shares 210
Answer:
$2,730,000
Explanation:
The opening cash balance is netted off the cash flows from all activities namely; Operating, investing and financing activities to get the closing cash balance.
The operating activities includes elements such as net income, depreciation and amortization, changes in working capital etc.
Given;
Net income = $2,500,000
Depreciation = $160,000
accounts receivable decrease = $350,000 (inflow of cash)
accounts payable decrease = $280,000 (outflow of cash)
net cash provided by operating activities using the indirect approach
= $2,500,000 + $160,000 + $350,000 - $280,000
= $2,730,000
Answer:
Calculate Recline’s contribution margin ratio.
Contribution Margin RATIO 34%
Calculate the break-even point in sales dollars for Recline.
Break-Even Point $1.030.556
Explanation:
- The contribution margin it's determined by the total amount of Gross Profit divided by the total value of sales. To this case $405,000/$1,192,500 = 34%
Income Statement
11.250 Quantities
$106 Unit Price
$1,192,500 Sales
-$787,500 Cost of goods sold
$405,000 Contribution Margin 34%
-$281,250 Fixed Cost
$123,750 Operating Income
- The Break Even point it's when the Operating Income is equal to zero, it means the lowest level of sales the company can afford and not loss money.
BREAK EVEN POINT
9.722 Quantities
$106 Unit Price
$1,030,556 Sales
-$787,500 Cost of goods sold
$243,056 Contribution Margin
-$243,056 Fixed Cost
$0 Operating Income
