van for $28,000 with a salvage value of $3,000 on
September 1, Year 1. It has an estimated useful life of 5 years.
Using the straight-line method, how much depreciation expense
should the company recognize on December 31, Year 1?
Select one:
a. $1,400.
b. $5,000.
c. $1,250.
d. $1,667.
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In: Accounting
At the end of the current year, Bamboo Co. included $1,420,000 of recent purchases still in transit shipped F.O.B. Destination in their ending inventory. How will including this value affect Bamboo Co.'s financial statements?
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COGS will be too low. |
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Net Income will be correct. |
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Ending Inventory will be too low. |
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It is impossible to tell from the information provided. |
In: Accounting
The real risk-free rate is 3.5%. Inflation is expected to be 2% this year and 3.75% during the next 2 years. Assume that the maturity risk premium is zero.
What is the yield on 2-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. %
What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places. %
In: Finance
Suppose the present vaule of a 5 year ordinary annuity is $528, if the discount rate is 14%, what must the annual cash flow be?
In: Finance
The Wet Corp. has an investment project that will reduce expenses by $20,000 per year for 3 years. The project's cost is $20,000. If the asset is part of the 3-year MACRS category (33.33% first year depreciation) and the company's tax rate is 36%, what is the cash flow from the project in year 1?
In: Finance
Compute the duration of a bond which pays two coupons of $100 next year and the following year and then (in year two) repays the principal of $1000, given an annual yield of 7%. Repeat the calculation for a 9% yield.
In: Finance
An 8 year bond has a yield to maturity of 6%. Which would result in the smallest % change in the bond’s price, a rise to 7% or a fall to 5%? Why?
In: Finance
Aaron Inc. has 335 million shares outstanding. It expects earnings at the end of the year to be $650 million. The firm's equity cost of capital is 10%. Aaron pays out 50% of its earnings in total: 30% paid out as dividends and20% used to repurchase shares. If Aaron's earnings are expected to grow at a constant 6% per year, what is Aaron's share price?
In: Finance
A company has promised a dividend of $1.50. next year. The growth rate for the company is projected to be 1.5% annually. The beta of the company stock is 0.75. The market return is expected to be 6% and the risk free rate is 1.5% What should the fair price of the stock be?
In: Finance
Suppose that between the ages of 22 and
36,
you contribute
$9000
per year to a 401(k) and your employer contributes
$4500
per year on your behalf. The interest rate is
7.9%
compounded annually. What is the value of the 401(k) after
14
years? b. Suppose that after
14
years of working for this firm, you move on to a new job. However, you keep your accumulated retirement funds in the 401(k). How much money will you have in the plan when you reach age 65? c. What is the difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan?
a. The value of the 401(k) after
14
years is
$nothing.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
b. The money accumulated in the plan when reaching age 65 is
$nothing.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
c. The difference between the amount of money you will have accumulated in the 401(k) and the amount you contributed to the plan is
$nothing.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
In: Finance