Answer:
8.27%
Explanation:
Data provided in the question:
Current price = $36.72
Annual dividend paid, D0 = $2.18
Dividend growth rate, g = 2.2% = 0.022
Now,
Cost of Equity = [ (Dividend For Next Year) ÷ Current Price ] + Growth rate
= [ ( D0 × ( 1 + g ) ) ÷ $36.72 ] + 0.022
= [ ( $2.18 × ( 1 + 0.022 ) ) ÷ $36.72 ] + 0.022
= [ 2.22796 ÷ $36.72 ] + 0.022
= 0.06067 + 0.022
= 0.08267
or
= 0.08267 × 100% = 8.267% ≈ 8.27%
Answer:
The journal entries are as follows:
(i) On December 31, 2017
Unrealized gain or loss income A/c Dr. $10,800
To estimated purchase commitment liability $10,800
(To record other income and expenses)
Workings:
Unrealized gain or loss income = 36,000 × ($3 - $2.7)
= 36,000 × $0.3
= $10,800
(ii) On January 1, 2018
Raw material A/c (36,000 × $2.7) Dr. $97,200
Estimated purchase commitment liability A/c Dr. $10,800
To accounts payable $108,000
(To record the materials received in January 2018)
Ski Market sells snowboards. Ski Market knows that the most people will pay for the snowboards is $129.99. Ski Market is convinced that it needs a 45% markup based on cost. The most that Ski Market can pay to its supplier for the snowboards is $71.49.
Explanation:
- people will pay for the snowboards is $129.99.
- Ski Market is convinced that it needs a 45%
- The most that Ski Market can pay to its supplier for the snowboard is
- =
×45 - =$ 58.5
- =129.99 ±58.5
- = $71.49
- Therefore, Ski Market can pay to its supplier for the snowboards is $71.49.
Answer:
more will you have to save each month 981.9
Explanation:
given data
time = 30 year = 30 × 12 = 360 months
expected earn = 8.5 % = 
= 0.0070833
time = 10 year = 10 × 12 = 120 months
future value = millionaire = 
solution
we consider here saving end of this month = x
and saving end of 10 year = y
now we solve for x
= x × 
= x × 
x = 605.8
and
= y ×
= y × 
y = 1594.9
so here we require more amount to save is y - x in end of each month = 1594.9 - 605.8 = 981.9
Answer:
$18,711.57
Explanation:
The amount that the Bob will be getting at the beginning of the each month for the next 30 years shall be determined through the present value of annuity formula which shall be determined as follows:
Present value of annuity=R+R[(1-(1+i)^-n)/i]
R=Amount that he will be getting per month for next 30 years=?
i=interest rate per month=5/12=0.4167%
n=number of payment involved=30*12=360 and since the first payment is made at the start of month, therefore the n=359
Present value of annuity=$3,500,000
$3,500,000=R+R[(1-(1+0.4167%)^-359)/0.4167%]
$3,500,000=R+186.05R
$3,500,000=187.05R
R=$18,711.57=payment per month
