Your brother has offered to give you $165?, starting next? year, and after that growing at 2.5% per year for the next 2020 years. You would like to calculate the value of this offer by calculating how much money you would need to deposit in a local bank so that the amount will generate the same cash flows as he is offering you. Your local bank will guarantee a 5.8% annual interest rate so long as you have money in the account. a. How much money will you need to deposit into the account? today? b. Assuming you deposited the amount of money in part ?(a?), and then withdrew the required payments each? year, calculate the remaining balance at the end of years? 1, 2, 10 and 19.? (Hint: To solve this problem it is best to use an excel? spreadsheet.)??

1. Meet the Runkles: Harry and Marcia. The Runkles have two boys, Brian and Terry. Brian turns 11 years old in 2020 and starts secondary school in (2021) while Terry is a year younger and starts the year after (2022). The Runkles’ neighbours send their children to a private school. It costs $10,000 p.a. for year 7 and increases at a rate of 15 percent p.a. for years 8, 9, 10, 11 and 12. If, instead of sending Brian and Terry to the private school, they send them to the public school for a total cost of $10,000 each across all years, how much will the Runkles have saved by the end of 2027, when Terry would finish up? [Note: this is not a time value question. Simply add up the differential].

It is December 2019. Google has offered to buy your internet startup. The Google negotiators and you both agree on the following expectations.

After 2024, cash flows are expected to grow by 5% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 15%.

You have bank loans worth $400,000 outstanding.

What is the horizon value, i.e., the present value of all free cash flows from 2025 to infinity expressed in 2024-dollars?

What is the total value of the company?

What is the value per share of common stock if you have 100,000 shares outstanding?

Company X has issued a total of 1000 shares as of 2020.1.30, comprising 700 common shares, 100 non-debt preferred shares and 200 redeemable preferred shares.

1. What is the capital of this company?(the reason and calculation process together)

Company X repaid redeemable preferred shares in cash on March 1 and merged the shares 2:1 on April 1.

2. What is the capital as of April 2? ( the reason and calculatuon process together)

Company C carried out a paid-in capitsl increase wirh the payment deadline of April 15. A took over 60 shares by subscription to the same paid-in capital increase, and transferred 60 shares that were acquires to B on April 14 due to the urgent need for money.

3. After the settlement of accounts in 2020, who will receive the dividends?

Supply and Demand: In early 2020 the COVID-19 pandemic swept across the nation and world. In response, many workers moved from in-person working to remote working.
Webcams in particular showed an increase in the amount sold, especially the most well-known and trusted brands.

a. Most webcams are produced in China. The US is currently in a trade war with the Chinese which effectively causes additional costs on the production of Chinese goods through tariffs (i.e., taxes). Suppose after the next election, the US abandons the trade war and removes the tariffs. What effect should that have on the price of webcams?   

b. Logitech claims that it is ramping up capacity but is working to “overcome component shortages.” Using an elasticity of supply argument,explain what Logitech is claiming here. Do you expect that to last indefinitely?

AFN equation

Broussard Skateboard's sales are expected to increase by 25% from $7.0 million in 2019 to $8.75 million in 2020. Its assets totaled $3 million at the end of 2019.

Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 50%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Do not round intermediate calculations. Round your answer to the nearest dollar.

South Africa: Oil prices drop: What will fuel the energy industry post-COVID-19?

On April 20, 2020, the global petroleum industry witnessed a historic plummeting of benchmark US oil below $0 a barrel. Brent crude oil also has fallen nearly 70% from the beginning of the year. The drop in oil prices raises questions about the future of the global and regional energy industry as well as the role of fossil fuels in the transition towards a more sustainable energy future after the pandemic economic lockdown.

Use the extract above to write an essay in which you discuss the following:

• The name of the shock mentioned in the extract                              (2)
• The effect of the decline in oil prices on economic growth in South Africa (to discuss this point sufficiently, an AD-AS graph and detailed explanation are required.)

E16.10 (LO 3) (Issuance and Exercise of Stock Options) On November 1, 2020, Columbo Company adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company's $10 par value common stock. The options were granted on January 2, 2021, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $40, and the fair value option-pricing model determines the total compensation expense to be $450,000.

All of the options were exercised during the year 2023: 20,000 on January 3 when the market price was $67, and 10,000 on May 1 when the market price was $77 a share.

Moon Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000. Prepare the journal entries to revalue the building under the revaluation model using:

the asset adjustment (direct) method

the proportionate method

Use the information from 1 above. On January 5, 2021, Moon sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used

the cost model

the revaluation model using the asset adjustment method

the revaluation model using the proportionate method.

Would a potential investor prefer Moon Inc. use the asset adjustment method or the proportionate method to apply the revaluation model, why?

Consider the retail market for bananas in Australia in 2020. The market is in equilibrium with 20,000 tonnes being bought and sold per year at a price of $4 per kg.

a. Explain why $5 per kg for bananas is not an equilibrium price. Given the current demand and supply, if the price was temporarily $5 per kg, explain how the market would return to equilibrium.

b. Explain why the production/consumption of 20,000 tonnes of bananas is the socially efficient level of production (assuming there are no externalities).

c. Suppose that in 2021 price of diesel increases, increasing the transportation costs for banana farmers in getting their bananas to market. Explain why there would be any movement in the demand or supply curve and any change in the equilibrium price and quantity for bananas after the increase in the price of diesel.