years. | | The step-by-step calculation is: P | = | S(1 + rt)-1 | | | = | 400,000(1 + 0.0892 x 0.24657534...)-1 | | | = | 400,000 x 0.97847883... | | | = | $391,391.53 | Rounded as last step | b)You are correct. When the first bill matures at time 90 days, the investor purchases a second bill. We must find the purchase price of the second bill. This can be displayed on a time line: | | | | | $P | $400,000 | | | | | | 0 | 90 | 180 | 270 | | | | | | | | | P | = | price | = | unknown | | S | = | Maturity value | = | $400,000 | | r | = | Simple interest rate (decimal) | = | 9.16 | 100 | | = | 0.0916 | | t | = | Time period (years) | = | 90 | 365 | | = | 0.24657534... years.
Values between 41% and 43% obtained and hence the average of 42% was used. 2. The risk free rate is taken from the Government 30 Year Treasury note rate. 3. The beta for Boston Beer Company cannot be calculated as it has not been listed before.
ACCT 550 Week 7 Homework Chapter 11: E11-4, E11-9, E11-11, E11-17 E11-4 (Depreciation Computations—Five Methods) Wenner Furnace Corp. purchased machinery for $279,000 on May 1, 2012. It is estimated that it will have a useful life of 10 years, salvage value of $15,000, production of 240,000 units, and working hours of 25,000. During 2013, Wenner Corp. uses the machinery for 2,650 hours, and the machinery produces 25,500 units. Instructions From the information given, compute the depreciation charge for 2013 under each of the following methods. (Round to the nearest dollar.)
Planning to adopt a value-based performance metric? Think it will help you make smarter acquisition decisions? Okay, chew on this: If EVA is so smart, how come it didn't prevent EVA poster child The Quaker Oats Co. from making its disastrous $1.7 billion purchase of Snapple Beverages Co. in late 1994--which it was forced to sell two years later for a mere $300 million? Answer: Quaker didn't use EVA to calculate its $14-per-share offering price for Snapple. According to company spokesman Mark Dollins, Quaker uses a discounted cash flow model to evaluate acquisitions and divestitures, and merely uses EVA as an incentive compensation tool.
This implies that we can be 95% confident that the average (mean) sales per week exceeds 41.5 per salesperson since 41.654 > 41.5 and therefore our confidence interval does not include 41.5. If samples of size 100 are to be taken from the population of 1000 salespeople of the company again and again, the average (mean) sales per week will exceed 41.5 per salesperson, 95% of the times. b) The true population proportion of salespeople that received online training is less than 55%. Regarding this claim, the statistical evidence in not sufficient to conclusively say that the true population proportion of salespeople that received online training is less than 55%. The p-value associated with it is .157 or approximately 16% this is higher than the acceptable 5% level.
A divide by 100 B divide by 1000 C multiply by 100 D multiply by 1000 15 Which of the following is the smallest? A 0.07 7 C ----10 1 B -7 D 73% 7 A ----12 7 C ----16 7 B -9 7 D -8 5 Which one of these decimals could be rounded to 34.71? A 34.715 B 34.7 C 34.707 D 34.7039 1 6 What is -- as a percentage? 6 A 16% B 1.6% -C 16 2 % 3 D 60% 7 What is 37.5% of one day? A 10 hours B 8.6 hours C 9.6 hours D 9 hours 8 Increase $38 by 15%.
What would be the effects of a rent ceiling equal to $500 per month? A) a surplus equal to 3000 apartments B) a shortage equal to 250 apartments C) a shortage equal to 3000 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity Answer: C 2) 1 3) As a student of economics, when you speak of scarcity, you are referring to A) the inability of society to satisfy all human wants because of limited resources. B) the ability of society to continually make technological breakthroughs and increase production. C) the ability of society to consume all that it produces. D) the ability of society to employ all of its resources.
Eisenhower communications is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenue $10 million Operating costs (excluding depreciation) $ 7 million Depreciation $ 2 million Interest expense $ 2 million The company has a 40 percent tax rate, and its WACC is 10 percent a. What is the project’s operating cash flow for the first year? b. If this project would cannibalize other projects by $1 million of cash flow before taxes per year.
A company issued a 30-year, $1,000 par value bond that has 10.85% coupon rate. Coupons are paid out semi-annually and the relevant interest rate is 9% compounded semiannually. a. (3 points) What was the value of this bond when it was issued? PMT = (.1085/2)*1000=54.25 N = 60 R = 0.09/2=0.045 (or 4.5 for calculator purposes) FV = 1000 PV =?
Given the following cash flow stream at the end of each year: Year 1: $4,000 Year 2: $2,000 Year 3: 0 Year 4: -$1,000 Using a 10% discount rate, the present value of this cash flow stream is: a. $4,606 b. $3,415 c. $3,636 d. Other 8. Consider a 10-year annuity that promises to pay out $10,000 per year, given this is an ordinary annuity and that an investor can earn 10% on her money, the future value of this annuity, at the end of 10 years, would be: a. $175,312 b.