In: Finance
Derek currently has $10,116.00 in an account that pays 5.00%. He will withdraw $5,636.00 every other year beginning next year until he has taken 5.00 withdrawals. He will deposit $10116.0 every other year beginning two years from today until he has made 5.0 deposits. How much will be in the account 29.00 years from today?
Derek can deposit $297.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 13.00% and compounds interest monthly. Derek can deposit $2,551.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?
Category |
Prior year |
Current year |
Accounts payable |
41,400 |
45,000 |
Accounts receivable |
115,200 |
122,400 |
Accruals |
16,200 |
13,500 |
Additional paid in capital |
200,000 |
216,660 |
Cash |
??? |
??? |
Common Stock @ par value |
37,600 |
42,000 |
COGS |
131,400 |
179,694.00 |
Depreciation expense |
21,600 |
23,798.00 |
Interest expense |
16,200 |
16,724.00 |
Inventories |
111,600 |
115,200 |
Long-term debt |
135,000 |
138,868.00 |
Net fixed assets |
378,728.00 |
399,600 |
Notes payable |
59,400 |
64,800 |
Operating expenses (excl. depr.) |
50,400 |
66,310.00 |
Retained earnings |
122,400 |
136,800 |
Sales |
255,600 |
336,945.00 |
Taxes |
9,900 |
18,503.00 |
What is the current year's return on equity (ROE)?