* The birth-rate is a history of fluctuations. * There was a fall in birth rate during first world war followed by a baby boom with births peaking at 1.1million in 1920. * The was a low rate during interwar period and then another baby boom after second world war * In 2006 the birth rate was the highest in 26 years. * There are a number of reasons why the birthrate in 21st century is lower than in 1901 * A major decline in infant mortality rate (the number of children dying at birth in the first year of life per 1000) * This began because of improvements of sanitation , water supplies and nutrition. * As standards of living increased and childhood came to be seen as a special period , therefore sizes of families were limited.
On January 1, 2010, Roberto Company adopts a compensatory stock option plan and grants 40 executives 1,000 shares each at $30 a share. The fair value per option is $7 on the grant date. The company estimates that its annual employee turnover rate during the service period of three years will be 4%. However, at the end of 2011, the company estimates that the employee turnover will be 5% a year for the entire service period. The compensation expense for 2011 will be (Round off turnover calculations to three decimal places and answer to the nearest dollar.)
Problems (p.112) (3-1) Days Sales Outstanding Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. Ans: DSO (Days Sales Outstanding) = Accounts Receivables/Average Sales per day Accounts Receivables = 20 * 20000 = $400,000 (3-2) Debt Ratio Vigo Vacations has an equity multiplier of 2.5.
Nikko Corp's total common equity at the end of last year was $305,000 and its net income after taxes was $60,000. What was its ROE(Return on Equity)? (Points : 6) 16.87% 17.75% 18.69% 19.67% 20.66% Formula used in Return on Equity calculation is: 3. You have a chance to buy an annuity that pays $1,000 at the end of each year for three years. You could earn 5.5% on your money in other investments with equal risk.
Investment A will generate $2 million per year (starting at the end of the first year) in perpetuity. Investment B will generate $1.5 million at the end of the first year and its revenues will grow at 2% per year for every year after that. a. Which investment has the higher IRR? i.
Royal Dutch Shell Royal Dutch Shell declared its fourth quarter 2015 results 2 days ago on the 4th of February. The company reported earnings of $ 1.8 billion for the fourth quarter on a current cost of supplies (CCS) basis compared with $ 4.2 billion for the same quarter a year ago. Full year 2015 CCS earnings were down to $ 3.8 billion from $ 19.0 billion for the full year 2014. Excluding extra-ordinary items, the earnings for the quarter were $ 1.8 billion compared with $ 3.3 billion for the fourth quarter of 2014 while earnings for the year were $ 10.7 billion compared with $ 22.6 billion in 2014. Cost Reduction: Shell is pulling on powerful financial levers in response to the oil price downturn.
Cashflow A: receive $60 today and then receive $60 in four years. Cashflow B: receive $12 every year, forever, starting today. Cashflow C: pay $50 every year for five years, with the first payment being next year, and then subsequently receive $30 every year for 20 years. Cashflow D: receive $9 every other year, forever, with the first payment being next year. 2.
b. The future value of $800 saved each year for 10 years at 8 percent. c. The amount that a person would have to deposit today (present value) at a 6 percent interest rate in order to have $1,000 five years from now. d. The amount that a person would have to deposit today in order to be able to take out $500 a year for 10 years from an account earning 8 percent. Solution: a.
He proposed this puzzle: Beginning with a single pair of rabbits, if every month each productive pairs bears a new pair, which becomes productive when they are 1 month old, how many rabbits will there be after n months? At the end of the first month, they mate, but there is still only 1 pair. At the end of the second month the female produces a new pair, so now there are 2 pairs of rabbits. At the end of the third month, the original female produces a second pair, making 3 pairs in all. At the end of the fourth month, the original female has produced another new pair, and the female born two months ago produces her first pair also, making 5 pairs.