What is the future value at the end of year four of the following set of end-of-year cash flows? Assume an interest rate of 8 percent. Year Cash Flow 1 $1,000 2 -$1,000 3 $1,000 4 -$1,000
A) $0.00 B) $127.38 C) $173.31 D) $379.41 E) $3,312.13
The answer is B but I got E using the calculations below. How do you get $173.31?
PV= 1,000/(1+.08) + 1,000/(1+.08)^2 + 1,000/ /(1+.08)^3 + 1,000//(1+.08)^4 = 3312.127
In: Finance
The shares outstanding of RING Inc. are 321 million. At the end of the year, the company expects its earnings to be $641 million. The equity cost of capital of the company is 11%. The firm pays out 50% of its earnings in total: 20% used to repurchase shares and 30% paid out as dividends. If earnings are expected to grow at a constant rate of 7% per year, what is the share price of RING Inc?
Select one:
$12.48
$37.44
$49.92
$24.96
In: Finance
Shares in Rioja Enterprises were priced at $4.45 at the beginning of the year. At the end of the year the price had dropped to $4.30 and the company had paid a dividend of $0.26. What is the dividend yield?
A. 5.84%
B. -3.37%
C. 2.47%
D. -0.53%
In: Finance
the balance in retained earnings at the end of the year is determined by retained earnings balance at the ''beginning of the year:
a. plus revenues, minus liabilities
b. plus net income, minus dividends
c. plus assets, minus liabilities
d. plus accounts, minus deferrals
In: Accounting
The book value of Victor's equipment was $140,000 at the beginning of the year and $180,000 at year end. Depreciation expense for the year was $10,000. If no equipment was sold during the year, how much equipment did Victor purchase?
Group of answer choices
A. $40,000.
B. $50,000.
C. $60,000.
In: Accounting
The comparative balance sheets of Coronado Inc. at the beginning
and the end of the year 2020 are as follows.
|
CORONADO INC. |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2020 |
Jan. 1, 2020 |
Inc./Dec. |
|||||||||
|
Assets |
|||||||||||
|
Cash |
$ 46,480 | $ 14,480 | $32,000 | Inc. | |||||||
|
Accounts receivable |
94,200 | 89,720 | 4,480 | Inc. | |||||||
|
Equipment |
42,200 | 23,720 | 18,480 | Inc. | |||||||
|
Less: Accumulated Depreciation-Equipment |
20,200 | 11,000 | 9,200 | Inc. | |||||||
|
Total |
$162,680 | $116,920 | |||||||||
|
Liabilities and Stockholders’ Equity |
|||||||||||
|
Accounts payable |
$ 23,200 | $ 16,720 | 6,480 | Inc. | |||||||
|
Common stock |
101,480 | 81,720 | 19,760 | Inc. | |||||||
|
Retained earnings |
38,000 | 18,480 | 19,520 | Inc. | |||||||
|
Total |
$162,680 | $116,920 | |||||||||
Net income of $47,200 was reported, and dividends of $27,680 were
paid in 2020. New equipment was purchased and none was sold.
Prepare a statement of cash flows for the year 2020.
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
|
You put up $40 at the beginning of the year for an investment. The value of the investment grows 4% and you earn a dividend of $3.00. Your HPR was ____. |
In: Finance
The current price of a stock is $80, and at the end of one year its price will be either $88 or $72. The annual risk-free rate is 3.0%, based on daily compounding. Based on the binominal model, what is the present value for a 1-year call option on this stock with an exercise price of $86?
In: Finance
If you make a deposit of the amount below at the end of each year for the number of years at the interest rate specified, how much money will you have in the account at the end of that time?(Do not round intermediate calculations, round answer to two decimal places, i.e. 32.16)
Payment:9000
Years:23 Interest
Rate:9.2%
In: Finance
The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 17,000 Year 2: $ 22,000 Year 3: $ 27,000 Year 4: $ 32,000 An appropriate discount rate is 7 percentage, yielding a present value of $81,556. 1. If the lease is an operating lease, what will be the initial value of the right-of-use asset? 2. If the lease is an operating lease, what will be the initial value of the lease liability? 3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1?
In: Finance