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2 years ago

6

A farmer sells five pounds of pecans to a smith's fresh pecans for $10. smith's fresh pecans resells three pounds for $4.50 per

pound. the remaining pecans are shelled and canned and sold for a total of $8.00 taking these transactions into account, how much is added to gdp?

1 answer:

AURORKA [14]2 years ago

4 0

$21.50 is added to GDP.

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Patrick Company expects to generate freeminuscash of $120,000 per year forever. If the firm's required return is 12 percent,

photoshop1234 [79]

Answer:

$6.3 per share

Explanation:

There are two method of Valuation of the firm

Weighted average cost of the capital (WACC)
Free cash flow to equity (FCFE)

We have to calculate the value of the firm using FCFE. Free cash flow to equity (FCFE) is the amount of cash flow generated by the business and potentially available for distribution among the stockholders.

Value of firm = Free cash flow / required rate of return = $120,000 / 12% = $1,000,000

Market value of Equity = Total value of firm - Market value of Debt - Market value of Preferred share

Market value of Equity = $1,000,000 - $300,000 - $70,000 = $630,000

Value of Patrick's stock = Market Value of equity / shares of stock outstanding = $630,000 / 100,000 = $6.3 per share

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2 years ago

A company issued 5-year, 7% bonds with a par value of $500,000. The market rate when the bonds were issued was 6.5%. The company

san4es73 [151]

Answer:

The correct answer is $17,000.

Explanation:

According to the scenario, the given data are as follows:

Bonds percent = 7%

Par value of bonds = $500,000

Market rate = 6.5%

Cash received = $505,000

So, we can calculate the amount of recorded interest for semiannual interest period by using following formula:

First we calculate the premium on bonds,

So, Premium on bonds = Cash received - Par value of bonds

= $505,000 - $500,000

= $5,000

So, straight line amortization = Premium on bonds ÷ years

= $5,000 ÷ 5

= $1,000

So, Amount of interest expense for first semiannual is as follows:

Amount of interest = ( Par value of bonds × Bonds percent ) ÷ 2 - (straight line amortization ÷ 2)

= ( $500,000 × 7% ) ÷ 2 - ( $1,000 ÷ 2 )

= $17,500 - $500

= $17,000.

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2 years ago

A service contract for a video projection system costs $70 a year. you expect to use the system for five years. instead of buyin

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2 years ago

A private pilot wishes to insure his airplane for$200,000. The insurance company estimates that a total loss will occur with pro

Finger [1]

Answer:

The answer is: $6,900

Explanation:

To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:

total loss $200,000 x 0.002 = $400
50% loss $100,000 x 0.01 = $1,000
25% loss $50,000 x 0.1 = $5,000

Total $6,400

If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.

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2 years ago

1. How does Badger's approach to social responsibility help attract and retain employees?

vredina [299]

Answer:

W.S. Badger became a certified benefit corporation. This is a rigorous test for companies to meet standards of transparency, accountability, and social and environmental performance. The highest-paid employee is capped five times that of the lowest paid. Company profits flow to employees via profit sharing. All employees participate in a bonus plan. Also, new parents can bring their babies to work. Finally, Badger donates pre-tax profits to non-profit organizations.

Explanation:

This company is a model of how businesses should look out for their employees that are the backbone.

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2 years ago