What is the present value of a perpetuity of $80 per year if the discount rate is 11%?

A company is planning on increasing its annual dividend by 7.50% a year for the next three years and then settling down to a constant growth rate of 2.50% per year in perpetuity. The company just paid its annual dividend in the amount of $0.80 per share. What is the current stock price if the required rate of return is 17.50%?

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2019:

1. Christina, who is single.
2. Adrian and Carol, who are filing a joint return. Their son is blind.
3. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions.
4. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents.
5. Rodolfo, who is over 65 and is single.
6. Bernard, who is a nonresident alien with U.S. income.
7. Manuel, who is 70, and Esther, who is 63 and blind, will file a joint return.
8. Herman, who is 75 and a qualifying widower with a dependent child.

Sydney will fund a scholarship that will provide payments of $25,000 per year in perpetuity, with the first scholarship payment to be paid 20 years from today. She is considering two options:

Option A: Pay $22,974,73 at the beginning of each year for the next 20 years.

Option B: Pay $K per year at the end of the year for the next 5 years.

The effective annual interest rate is constant and the present value of option A is equal to the present value of option B.

Calculate K.

Find the present value of the given perpetuity. ​

$43200 per year at the rate of 6​% yearly

A company is planning on increasing its annual dividend by 8.75% a year for the next three years and then settling down to a constant growth rate of 3.75% per year in perpetuity. The company just paid its annual dividend in the amount of $1.05 per share. What is the current stock price if the required rate of return is 18.75%?
Question 8 options: $7.82
$8.02
$8.23
$8.43
$8.64

HCJ Corporation is completing their cash budget for the following year. They are going to buy an industrial robot. They will make the acquisition on January 2 of next year, and it will take most of the year to train the personnel and reorganize the production process to take full advantage of the new equipment.”

The robot will cost $1,000,000 financed with a a one-year $1,000,000 loan from My Bank and Trust Company. I’ve negotiated a repayment schedule of four equal installments on the last day of each quarter.

The interest rate will be 10 percent, and interest payments will be quarterly as well

HCJ Corporation is a manufacturer of metal picture frames. The firm’s two product lines are designated as S (small frames; 5 x 7 inches) and L (large frames; 8 x10 inches). The primary raw materials are flexible metal strips and 9-inch by 24-inch glass sheets.   Other raw materials, such as cardboard backing, are insignificant in cost and are treated as indirect materials.

Here is the provided budget information

     1. Sales in the fourth quarter of 20x0 are expected to be 50,000 S frames and 40,000 L frames. Over the next two years, sales in each product line will grow by 5,000 units each quarter over the previous quarter. For example, S frame sales in the first quarter of 20x1 are expected to be 55,000 units.

    2. HCJ's sales history indicates that 60 percent of all sales are on credit, with the remainder of the sales in cash. The company’s collection experience shows that 80 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 20 percent is collected in the following quarter. (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

    3. The S frame sells for $10, and the L frame sells for $15. These prices are expected to hold constant

throughout 20x1.

    4. HCJ's production team attempts to end each quarter with enough finished-goods inventory in each product line to cover 20 percent of the following quarter’s sales. Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter’s production. Since metal strips are purchased locally, HCJ buys on a just-in-time basis; inventory is negligible.   The purchase and production quantities are shown.

5. All direct-material purchases are made on account, and 80 percent of each quarter’s purchases are paid in cash during the same quarter as the purchase. The other 20 percent is paid in the next quarter.

6. Indirect materials are purchased as needed and paid for in cash. Work-in-process inventory is negligible.

7. Projected manufacturing costs in 20x1 are as follows:

Direct material:

Metal strips. @ $1 per foot

Glass sheets: $8 per sheet  

Direct labor for both products .1 hour @ $20 per hour

Manufacturing overhead: .1 direct-labor hour @ $10 per hour

Total manufacturing cost per unit . S: $7 L: $10

1. Sales budget:

2. Cash receipts budget:

3. Cash disbursements budget: (including purchases of direct materials and payments for same)

4. Summary cash budget: