Expenditures of $92,000 for successful litigation in defense of the patent were paid on July 1, 2011. Sisco estimates that the useful life of the patent will be increase by 10 years from the date of litigation becasue of successfully defending it Instructions: Prepare a computation of the carrying value of the patent at December 31,
Williams exercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010. Quoted market prices of Trent Co. stock during 2010 were as follows: January 1 $30 per share September 1 $36 per share December 1 $40 per share The service period is for 2 years,
Based on that, Corporation B is desirable to Corporation A as it has a greater net present value. The Internal Rate of Return (IRR) is defined as the discount rate that equates the present value of the project’s free cash flows with the project’s initial cash outlay (Keown, A. J., Martin, J. D., & Petty, J. W. (2014). Based on the Internal Rate of Return rule, an investment is suitable if the Internal Rate of Return exceeds the required return, it should be rejected otherwise. Based on that, Corporation B is preferred over Corporation A since the former has a higher Internal Rate of Return. Examining the above, the Net Present Value and the Internal Rate of Return are closely related.
FV = PV x (1+r)5; $100,000 = $65,000 x (1=r)5; 1.53846 = (1+r)5; (1.53846) 1/5 = 1+r; 1.08998 = 1+r; annual rate = 8.998$ 13. PV of Annjuity = Payment x [1-(1+r)-5]/r; $33,520 = $10,000 x [1-(1+r)-5]/r Period 9nper0 = 5; Payment = $10,000; Present Value (PV) = $33,250; Future Value (FV) = $0; Rate of Return =
------------------------------------------------- - 1 of 7 ACST201.A1.001 A $100,000 Bank Bill will mature at the end of 133 days. Find its price, to the nearest cent, assuming: a)9% pa simple interest and a 365 day year. Price = $ b)9% pa simple discount and a 365 day year. Price = $ c)9% pa simple interest and a 360 day year. Price = $ d)9% pa simple discount and a 360 day year.
the Credit Balance (X) we saw that there is a strong positive slope, meaning that customers who carry a larger credit balance usually will also have higher income as shown in the best-fit line. For linear regression equation we have the following; Income ($1000) = -3.51589 + 0.0119264 Credit Balance($). From this, we can see the B0= -3.51589, which is also the Y intercept, while B1 is 0.0119264 is the slope for this variable. The coefficient of correlation and the coefficient of determination both showed a positive strong relationship between the two variable of Credit Balance (X) and Income (Y). The R^2=86.52%, while R=0.80.
An annuity pays $24,000 per year for 11 years (first payment one year from today). You feel the appropriate discount rate is 13%. What is the annuity worth to you today? 10. You deposit $16,000 per year for 12 years (deposits at the end of each year) in an account that pays an annual interest rate of 14%.
Question 14 Which of the following bank accounts has the highest effective annual return? Question 15 0 out of 2 points Which of the following statements is CORRECT? Question 16 Which of the following statements is CORRECT? Question 17 A 10-year corporate bond has an annual coupon of 9%. The bond is currently selling at par ($1,000).
to Expected Realizable Value 60,000 EXERCISE 19-1 (15–20 minutes) (a) Pretax financial income for 2012 $400,000 Temporary difference resulting in future taxable amounts in 2013 (55,000) in 2014 (60,000) in 2015 (75,000) Taxable income for 2012 $210,000 Taxable income for 2012 $210,000 Enacted tax rate 30% Income taxes payable for 2012 $ 63,000 (b) | | Future Years | | | | 2013 | 2014 | 2015 | Total | | Future taxable (deductible) amounts | $55,000 | $60,000 | $75,000 | $190,000 | | Tax rate | X 30% | X 30% | X 30% | | | Deferred tax liability (asset) | $16,500 | $18,000 | $22,500 | $ 57,000 | Deferred tax liability at the end of 2012 $ 57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income taxes payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Taxes Payable 63,000 Deferred Tax Liability 57,000 (c) Income before income taxes $400,000 Income tax
Each bond would have 75 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par? Question 24 Europa Corporation is financing an ongoing construction project.