Derek will deposit $4,355.00 per year for 30.00 years into an account that earns 9.00%, The first deposit is made next year. How much will be in the account 45.00 years from today?
In: Finance
Suppose that the consensus forecast of security analysts of NoWork Inc. is that earnings next year will be E1= $5.00 per share. The company tends to plow back 60% of its earnings and pay the rest as dividends. The CFO estimates that the company’s growth rate will be 8% from now on.
(a) If your estimate of the company’s required rate of return is 12%, what is the equilibrium price of the stock?
(b) Suppose there is uncertainty about the growth rate. With 50% probability the growth rate will be 6%, with 50% probability the growth rate will be 10%. What are the respective market values under the two growth rates? What must be the price of the stock, given that both growth rates have equal probability?
(c) Under the probabilities in (b) the expected growth rate of the
firm is 8%. Howcome the valuation in part (b) is different from the
valuation in part (a)?
In: Finance
Assume that VCU is considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If VCU require an 9.5% nominal yield to maturity on this investment, what is the maximum price VCU should be willing to pay for the bond?
In: Finance
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An auditor obtains the year end closing market price of the shares in a listed public company and applies this to the number of these shares owned by the entity. Which assertion is the auditor most likely addressing? Which ans in correct an which is incorrect. explain the reason for both accordingly. |
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| The information is not incomplete. | |
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a. Rights and obligations |
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b. Accuracy, valuation and allocation |
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In: Accounting
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Foulds Company makes 13,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: |
| Direct materials | $ | 12.70 |
| Direct labor | 20.30 | |
| Variable manufacturing overhead | 2.50 | |
| Fixed manufacturing overhead | 10.40 | |
| Unit product cost | $ | 45.90 |
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An outside supplier has offered to sell the company all of these
parts it needs for $41.80 a unit. If the company accepts this
offer, the facilities now being used to make the part could be used
to make more units of a product that is in high demand. The
additional contribution margin on this other product would be
$62,400 per year. |
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If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $5.70 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.
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In: Accounting
The nominal price (per pound) of apples for each year is shown in the timeline below. What is the real price of apples in year 2002 (as seen from year 2001). Calculate your answer to the nearest penny (e.g., 3.81) Year 2001 2002 2003 2004 Nominal Price $2.38 $2.51 $2.62 $2.76 Price Level 151 155 157 160 Price Adjustment Real Price
In: Finance
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In: Accounting
The following data set provides information on the lottery sales, proceeds, and prizes by year in Iowa.
| FYI | Sales | Proceeds | Prizes |
| 1986 | $85,031,584 | $27,631,613 | $39,269,612 |
| 1987 | $98,292,366 | $31,157,797 | $47,255,945 |
| 1988 | $128,948,560 | $40,090,157 | $65,820,798 |
| 1989 | $172,488,594 | $49,183,227 | $92,563,898 |
| 1990 | $168,346,888 | $50,535,644 | $90,818,207 |
| 1991 | $158,081,953 | $44,053,446 | $86,382,329 |
| 1992 | $166,311,122 | $45,678,558 | $92,939,035 |
| 1993 | $207,192,724 | $56,092,638 | $116,820,274 |
| 1994 | $206,941,796 | $56,654,308 | $116,502,450 |
| 1995 | $207,648,303 | $58,159,175 | $112,563,375 |
| 1996 | $190,004,182 | $51,337,907 | $102,820,278 |
| 1997 | $173,655,030 | $43,282,909 | $96,897,120 |
| 1998 | $173,876,206 | $42,947,928 | $96,374,445 |
| 1999 | $184,065,581 | $45,782,809 | $101,981,094 |
| 2000 | $178,205,366 | $44,769,519 | $98,392,253 |
| 2001 | $174,943,317 | $44,250,798 | $96,712,105 |
| 2002 | $181,305,805 | $48,165,186 | $99,996,233 |
| 2003 | $187,829,568 | $47,970,711 | $104,199,159 |
| 2004 | $208,535,200 | $55,791,763 | $114,456,963 |
| 2005 | $210,669,212 | $51,094,109 | $113,455,673 |
| 2006 | $339,519,523 | $80,875,796 | $122,258,603 |
| 2007 | $235,078,910 | $58,150,437 | $133,356,860 |
| 2008 | $249,217,468 | $56,546,118 | $144,669,575 |
| 2009 | $243,337,101 | $60,553,306 | $138,425,341 |
| 2010 | $256,255,637 | $57,907,066 | $150,453,787 |
| 2011 | $271,391,047 | $68,001,753 | $158,961,078 |
| 2012 | $310,851,725 | $78,731,949 | $182,442,447 |
| 2013 | $339,251,420 | $84,890,729 | $200,801,768 |
| 2014 | $314,055,429 | $73,972,114 | $186,948,985 |
| 2015 | $324,767,416 | $74,517,068 | $196,882,289 |
| 2016 | $366,910,923 | $88,024,619 | $221,767,401 |
You decided to find the linear equation that corresponds to sales and year. Create a graph using the sales and year. Add the linear equation to the graph. What is the y-intercept of the linear equation?
Round each value below to the nearest integer.
Provide your answer below: ____E+ ___
In: Statistics and Probability
26.)What would be the monthly payment on a 5 year loan of $24,000 if the interest rate is 5.0% compounded montly?
| A. |
$452.91 |
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| B. |
$492.75 |
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| C. |
$377.42 |
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| D. |
$500.00 |
true or false:
27.)When doing a comparison of ratios for your company, the comparison probably should be with the industry average.
28.)When taking out a loan you would rather get an interest rate of 7% compounded monthly, instead of one compounded daily.
29.)Which of the following financial ratios are market-based ratios?
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| B. |
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| C. |
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| D. |
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30.)Window dressing is:
| A. |
Retailers advertising in windows. |
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| B. |
Making your books look better by "Cooking the Books". |
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| C. |
Calculating the interest rate needed to double your money. |
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| D. |
Is legal and ethical. |
In: Finance
Company imports and sells bottles. At the beginning of the year 2018, the company had 900 bottles and the cost of goods was 2.700.000. The company does not use a perpetual inventory system.
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Purchase |
Sale |
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Quantity |
Price/unit |
Quantity |
Price/unit |
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February |
Purchase |
600 |
3.100 |
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Mars |
Sale |
700 |
8.000 |
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May |
Purchase |
1.600 |
3.400 |
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June |
Sale |
900 |
9.500 |
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July |
Sale |
700 |
9.500 |
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September |
Sale |
600 |
9.800 |
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October |
Purchase |
500 |
3.500 |
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A) Calculate the cost of ending inventory using FIFO, LIFO and weighted-average method.
B) What is the cost of goods sold for all three methods?
C) Which method gives the highest net income?
In: Accounting