Consider the following cash flows for projects A and B.
Year Project A Project B
0 -$1000 -$1000
1 375 900
2 375 700
3 375 500
4 375 -200
5 -100 200
The cost of capital for both projects is 10%. What is the cross over rate for projects A and B (the rate at which NPV profiles of the projcets intersect each other)?
| 1. |
There is no cross over rate as the NPV profiles of projects A and B do not cross each other for any rate between 0% and 100%. |
|
| 2. |
There are multiple cross over rates for projects A and B for rates between 0% and 100%. |
|
| 3. |
15.61% |
|
| 4. |
10% |
In: Finance
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of transactions. The following journal entries
impacted its stockholders’ equity during its first year of
operations.
| General Journal | Debit | Credit | |
| a. | Cash | 290,000 | |
| Common Stock, $25 Par Value | 230,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 60,000 | ||
| b. | Organization Expenses | 150,000 | |
| Common Stock, $25 Par Value | 128,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 22,000 | ||
| c. | Cash | 44,500 | |
| Accounts Receivable | 17,500 | ||
| Building | 82,100 | ||
| Notes Payable | 59,600 | ||
| Common Stock, $25 Par Value | 54,500 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 30,000 | ||
| d. | Cash | 123,000 | |
| Common Stock, $25 Par Value | 78,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 45,000 | ||
Required:
2. How many shares of common stock are outstanding
at year-end?
3. What is the amount of minimum legal capital
(based on par value) at year-end?
4. What is the total paid-in capital at
year-end?
5. What is the book value per share of the common
stock at year-end if total paid-in capital plus retained earnings
equals $796,000?
In: Accounting
Equipment was acquired at the beginning of the year at a cost of $40,000. The equipment was depreciated using the double-declining-balance method based on an estimated useful life of ten years and an estimated residual value of $780. a. What was the depreciation for the first year?
b. Assuming the equipment was sold at the end of year 2 for $9,240, determine the gain or loss on the sale of the equipment. $fill in the blank
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.
In: Accounting
In the next year, there is a 40% chance of a bear market, and a 60% change of a bull market. Over the next year:
Debt will realize a 0% return in a bear market, and a 6% return
in a bull market.
Equity will realize a -10% return in a bear market, and a 20%
return in a bull market
What is the correlation of debt and equity? (decimal number, 3
decimal places)
In: Finance
In the next year, there is a 40% chance of a bear market, and a 60% change of a bull market. Over the next year:
Debt will realize a 0% return in a bear market, and a 6% return
in a bull market.
Equity will realize a -10% return in a bear market, and a 20%
return in a bull market.
What is the covariance of debt and equity? (decimal number, 4
decimal places)
In: Finance
Kinkaid Co. is incorporated at the beginning of this year and
engages in a number of transactions. The following journal entries
impacted its stockholders’ equity during its first year of
operations.
| General Journal | Debit | Credit | |
| a. | Cash | 280,000 | |
| Common Stock, $25 Par Value | 230,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 50,000 | ||
| b. | Organization Expenses | 190,000 | |
| Common Stock, $25 Par Value | 129,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 61,000 | ||
| c. | Cash | 43,500 | |
| Accounts Receivable | 18,000 | ||
| Building | 82,400 | ||
| Notes Payable | 59,900 | ||
| Common Stock, $25 Par Value | 54,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 30,000 | ||
| d. | Cash | 134,000 | |
| Common Stock, $25 Par Value | 80,000 | ||
| Paid-In Capital in Excess of Par Value, Common Stock | 54,000 | ||
Required:
2. How many shares of common stock are outstanding
at year-end?
3. What is the amount of minimum legal capital
(based on par value) at year-end?
4. What is the total paid-in capital at
year-end?
5. What is the book value per share of the common
stock at year-end if total paid-in capital plus retained earnings
equals $791,000?
How many shares of common stock are outstanding at year-end? What is the amount of minimum legal capital (based on par value) at year-end? What is the total paid-in capital at year-end?
|
What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $791,000?
|
|||||||||||||||||||||
In: Accounting
Prior to adjustment at the end of the year, the balance in Trucks is $301,820 and the balance in Accumulated Depreciation—Trucks is $102,720. Details of the subsidiary ledger are as follows:
|
Estimated |
Accumulated Depreciation at | Miles Operated | |||
|---|---|---|---|---|---|
| Truck No. | Cost | Residual Value | Useful Life | Beginning of Year | During Year |
| 1 | $80,950 | $14,800 | 245,000 miles | — | 20,200 |
| 2 | 59,800 | 5,800 | 300,000 miles | $14,730 | 32,600 |
| 3 | 75,620 | 13,000 | 202,000 miles | 62,060 | 7,700 |
| 4 | 85,450 | 22,000 | 235,000 miles | 25,930 |
22,300 |
A. Determine the depreciation rates per mile and the amount to be credited to the accumulated depreciation section of each of the subsidiary accounts for the miles operated during the current year.
| Truck No. | Rate per Mile | Miles Operated | Credit to Accumulated Depreciation |
| 1 | .27 | 20,200 | 5454 |
| 2 | .18 | 32,600 | 5868 |
| 3 | .31 | 7,700 | ? |
| 4 | .27 | 22,300 | 6021 |
| Total | ? |
.31 x 7700 = 2387, but that is not the answer. How do I find it?
In: Accounting
Equipment was acquired at the beginning of the year at a cost of $562,500. The equipment was depreciated using the straight-line method based on an estimated useful life of 9 years and an estimated residual value of $40,600. a. What was the depreciation for the first year? Round your answer to the nearest cent.
b. Using the rounded amount from Part a in your computation, determine the gain(loss) on the sale of the equipment, assuming it was sold at the end of year eight for $92,889. Round your answer to the nearest cent and enter as a positive amount.
c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.
In: Accounting
Calculate ?(? < 8) if: (i) ? is the number of distinctions reported in a year by 20 Colleges. Each College produces distinctions at the rate of 0.2 per year independently of the other Colleges. (ii) ? is the number of claims examined up to and including the fourth claim that exceeds K20,000. The probability that any claim received exceeds K20,000 is 0.3 independently of any other claim. (iii) ? is the number of deaths amongst a group of 500 TB patients. Each patient has a 0.01 probability of dying independently of any other patient. (iv) ? is the number of phone calls made before an agent makes the first sale. The probability that any phone call leads to a sale is 0.01 independently of any other call.
In: Math
Please summarize the paragraph with no plagiarism.
In July of that year the bulk of the fleet reached a small island off the coast of Virginia that was called Roanoke. After building a small fort on the north side of the island, the colonizers started relations with a Native American tribe that lived on the island, the Aquascogoc. These natives showed little interest in building relations with the English colonists, and they soon parted company. After this encounter, however, the English noticed that one of their silver cups had gone missing, and they attributed its disappearance to the Aquascogoc. Grenville, the English captain, was furious. He believed that the Aquascogoc had stolen the silver cup. Whether or not this was true, angry exchanges followed and soon the English burned the Aquascogoc village. The English held their fort against the subsequent attacks of the natives.
In: Psychology