Answers
Answer:
PV= $5,023,002.595
Explanation:
Giving the following information:
Annual payment= $590,000
Number of periods= 20 years
Interest rate= 0.10
First, we need to calculate future value:
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {590,000*[(1.1^20) - 1]} / 0.1
FV= $33,792,249.7
Now, the present value:
PV= FV/(1+i)^n
PV= 33,792,249.7 / (1.1^20)
PV= $5,023,002.595
Related Questions
All of the following are costs (fees) associated with checking accounts except
A.) Monthly Service Charges
B.) Overdraft fees
C.) ATM Card transactions fees
D.) Direct Deposit
Answers
How long should a résumé be
Answers
Answer:
Mark Brainliest
Explanation:
For most candidates, a resume should be only one page. Be brief and concise with anything you write on your resume. Customize your resume for the job you're applying for and include only relevant experience. If you've done everything right, you shouldn't get past one page
what are the challenges facing today's management
Answers
The challenges facing today's management are Uncertainty about the Future; the Well-being of Employees; Tracking Team Productivity, and turnover, technology, and digitalization.
What is management?The process of completing the labour or task necessary for accomplishing an organization's goals in an effective and efficient way is referred to as management. The management functions are implied by the process. Planning, organizing, staffing, directing, and managing are therefore involved.
In management, there are decreased levels of performance, hiring competent personnel; inadequate communication.
Time management issues, difficult coworkers, difficult clients, performance pressure, poor cooperation, Skepticism, etc are some of the major challenges faced by the management. Therefore, the success of the management depends on those who are able to overcome these challenges.
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Mazu Mavuso is a 43-year-old South African resident who was employed by Veg & Fruit Limited, a South African company, until 30 November 2022. On 30 November 2022, Veg & Fruit Limited ceased its operations and the pension fund that Veg & Fruit Limited established for its employees also closed down. The Veg & Fruit Limited pension fund paid out R80 000 to Mazu Mavuso during the 2023 year of assessment. All Mazu Mavuso's pension fund contributions have been deducted in the determination of his taxable Income. Mazu Mavuso also decided to join a retirement annuity fund, to which he made a total contribution of R7 000 during the 2023 year of assessment. For the 2023 year of assessment, Mazu Mavuzo's receipts and expenses were as follow: Salary Director's fees earned Local dividends from South African companies Local interest from a non 'tax free investment' Pension fund contributions at 6.5% of his salary Retirement annuity fund contributions Qualifying medical expenses paid Donation to a qualifying section 18A Public Benefit Organisation R 720 000 110 000 45 000 24 500 ? 7 000 61 630 6 000 Calculate Mazu Mavuso’s taxable income for the 2023 year of assessment. (25 marks) 1.2) Calculate Mazu Mavuso’s total normal tax liability for the 2023 year of assessment. Assume that Mazu Mavuso had a taxable income of: • R770 900 before any retirement fund lump sum withdrawal benefits. • R843 900 after any retirement fund lump sum withdrawal benefits. (17 marks) Competency Framework Reference: E1.2 Interpretation of tax legislation b) Demonstrate the ability to apply the principles of tax interpretation to any new or unfamiliar tax legislation. E1.3 Application of tax legislation to calculate tax obligation a) Analyse the taxpayer’s tax profile. c) Apply the relevant law to the facts, determine the tax position and compute the tax payable (VAT or normal tax) for individuals and companies.
Answers
Explanation:
to calculated this question to solve
How To Find The Best Luxury Portable Restrooms In Sacrament
Answers
Research reliable agencies with tremendous opinions, lots of restroom options, and exact customer support. Ask for referrals and reach out for a quote.
To locate the great luxury transportable restrooms in Sacramento, you can start with the aid of learning from reputable corporations specializing in luxurious transportable restroom rentals. Look for groups with nice purchaser opinions and quite a few restroom alternatives to pick from. Consider factors along with the restroom's length, amenities, and cleanliness.
You also can ask for referrals from pals, a circle of relatives, or event planners who've used luxurious portable restrooms in the past. Once you have got a listing of ability agencies, attain out to them to talk about your desires and obtain a quote.
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Sheridan Company produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 0.5 hour per unit, and the allowance for rest periods and setup is 0.5 hours and 0.4 hours, respectively. The standard direct labor hours per unit is
Answers
Answer:
$15.90
Explanation:
Standard direct labor rate per hour = Hourly wage rate per hour + Average raise in the hourly wage rate + Payroll taxes per hour + Fringe benefits per hour
Standard direct labor rate per hour = $12.00 + $0.30 + $1.20 + $2.40
Standard direct labor rate per hour = $15.90
Equipment with a cost of $240,000 has an estimated residual value of $18,600, has an estimated useful life of 12 years, and is depreciated by the straight-line method.
Answers
The annual depreciation expense for the equipment using the straight-line method is $18,450.
In this scenario, the equipment has a cost of $240,000, an estimated residual value of $18,600, and an estimated useful life of 12 years. The equipment is depreciated using the straight-line method.
Depreciation is a method used to allocate the cost of an asset over its useful life. The straight-line method is a commonly used depreciation method where the cost of the asset is evenly spread out over its useful life.
To calculate the annual depreciation expense using the straight-line method, we subtract the estimated residual value from the cost of the equipment and divide the result by the estimated useful life:
Depreciation Expense per Year = (Cost - Residual Value) / Useful Life
Depreciation Expense per Year = ($240,000 - $18,600) / 12
Depreciation Expense per Year = $221,400 / 12
Depreciation Expense per Year = $18,450
Therefore, the annual depreciation expense for the equipment using the straight-line method is $18,450.
By depreciating the equipment over its useful life, the company is spreading out the cost of the equipment in a systematic manner, reflecting its gradual wear and tear and decrease in value over time. This approach allows for the matching of expenses with the revenue generated by the equipment's usage throughout its useful life.
It's important to note that depreciation methods and useful life estimates may vary depending on accounting standards and individual company policies. Additionally, the estimated residual value represents the expected value of the equipment at the end of its useful life, accounting for potential salvage or resale value.
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The best way to start a statement on your résumé is with _____. a. “I” or “My” b. a noun c. an active verb d. an adjective Please select the best answer from the choices provided A B C D
Answers
The best way to start a statement on your résumé is by using an active verb.
What is a Résumé?
This is referred to a document that summarizes work experience, educational background, and special skills of individuals.
A résumé starts with an active verb as it helps to show the necessary actions within a sentence thereby making option C the most appropriate choice.
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WHAT IS A CALCULATED INTEREST RATE
Answers
Answer:
Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
Explanation:
Do you have a course for Economics?
Answers
Answer:
no I don't. have a course for economics
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Answers
Answer:
$82,500
Explanation:
the journal entry to record the bond issuance
Dr Cash 1,650,000
Cr Bonds payable 1,650,000
bonds sold at par
Every 6 months it will pay = $1,650,000 x 10% x 1/2 = $82,500
journal entry to record first coupon payment
Dr Interest expense 82,500
Cr Cash 82,500
Which of these is an example of a monopoly? Utility companies Soda companies Airlines Computer companies
Answers
Utilities firms are one example of a monopoly among the possibilities given. When they are the exclusive provider of these necessary services in a certain region, utility firms, such as those that provide electricity, water, or natural gas, frequently act as Monopoly. As a result, customers are virtually forced to adopt the services offered by the local utility company since they have no other alternatives.
The Landlord's Game, which was developed by Lizzie Magie in the United States in 1903 to advance Henry George's economic theories, particularly his views on taxation, and to show that an economy that rewards Utilities individuals is preferable to one in which monopolies hold all the wealth, is the source of Monopoly.
The Landlord's Game originally featured two sets of rules, one that included taxes and another that serves as the foundation for the present regulations.
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accrued expenses
1. Workers' salaries for the six-day week is P4,800 payable every Saturday. December 31 is a Thursday.
2. Water bill received December 26 in the amount of P890 will be paid January 7 of the following year.
Answers
Answer:
1. Accrued salaries expense as of December 31 would be calculated as follows:
Number of days from Saturday to Thursday = 5 days
Salary expense per day = P4,800 / 6 days = P800 per day
Accrued salaries expense = 5 days x P800 per day = P4,000
Therefore, the company would need to record an accrued salaries expense of P4,000 as of December 31.
2. Accrued water expense as of December 31 would be calculated as follows:
Number of days from December 26 to December 31 = 5 days
Water expense per day = P890 / 30 days = P29.67 per day
Accrued water expense = 5 days x P29.67 per day = P148.35
Therefore, the company would need to record an accrued water expense of P148.35 as of December 31.
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Read the prompt and enter your response in the space provided.
After considering the responses from the Better Bikes departmental manager interviews, describe your solutions to the company's problem on which you chose to focus. Your description should be a minimum of 2 to 3 paragraphs.
Answers
When did kylie jenner was born
Answers
In a castle !!!!!!!!!!!!
Answer:Kylie Jenner was born in August’s 10th 1997 making her 23 years old
Example of a market for a good or service that is not rely on a physical store or location 
Answers
An example of a market for a good or service that does not rely on a physical store or location is the online marketplace. With the advent of the internet and e-commerce platforms, businesses and individuals can sell products and services entirely online without the need for a brick-and-mortar store.
Online marketplaces, such as Amazon, eBay, and Alibaba, provide a platform where buyers and sellers can connect and conduct transactions electronically. These platforms enable businesses to showcase their products, provide detailed descriptions, and facilitate secure online payments. Customers can browse through a wide range of products, compare prices, read reviews, and make purchases from the comfort of their own homes.
The online marketplace has revolutionized various industries, including retail, entertainment, travel, and professional services. It allows businesses to reach a global customer base, operate 24/7, and reduce overhead costs associated with physical stores. Additionally, it provides convenience for consumers, who can shop anytime, anywhere, and have products delivered to their doorstep.
Overall, the online marketplace has transformed the way goods and services are bought and sold, offering a virtual alternative to traditional physical stores and locations.
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7. How micro and macro economics are interdependent
to each other?
Answers
Explanation:
Actually micro and macroeconomics are interdependent. The theories regarding the behaviour of some macroeconomic aggregates (but not all) are derived from theories of individual behaviour. ... Similarly, the theory of aggregate consumption function is based upon the behaviour patterns of individual consumers.
f Honduras is open to international trade in oranges without any restrictions, it will import
tons of oranges.
Suppose the Honduran government wants to reduce imports to exactly 100 tons of oranges to help domestic producers. A tariff of
$
per ton will achieve this.
A tariff set at this level would raise
$
in revenue for the Honduran government.
Answers
Suppose that Honduras is open to international trade in oranges without any restrictions, it will import an infinite amount of oranges. Therefore, the import of oranges can be limited through a tariff. The Honduran government wants to reduce imports to exactly 100 tons of oranges to help domestic producers.
A tariff of $720 per ton will achieve this. A tariff set at this level would raise $72,000 in revenue for the Honduran government.
Tariff: It is a tax imposed by a government on imported or exported goods. The main purpose of a tariff is to limit imports and protect domestic production and employment.
In this scenario, a tariff is imposed by the Honduran government to limit the import of oranges and help domestic producers. Therefore, if the tariff is set at $720 per ton, then it would reduce the imports of oranges to exactly 100 tons, which is the desired goal of the Honduran government.
Moreover, the tariff rate multiplied by the number of imports gives the amount of revenue raised by the Honduran government, which is $720 × 100 = $72,000. Thus, a tariff set at $720 per ton will raise $72,000 in revenue for the Honduran government.
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A retailer spends a $500 per month to keep its online shop active and updated. The store acquires shirts at a cost of $5 per shirt. Each shirt sells for a marginal benefit of $10 per shirt.
How many shirts would you have to sell for it’s marginal benefits to be greater than its total costs?
Answers
Answer:
100 shirts
Explanation:
Borrowing from the contribution margin concept, the level where the marginal benefit is greater than total costs is the break-even point.
Break-even point = fixed cost / contribution margin per unit.
For this retailer,
Fixed costs are $500,
The contribution margin per unit = selling price- variable cost
=$10-$5
=$5
Break-even point
= $500/$5
= 100units
The retailer would have to sell 100 shirts for it’s marginal benefits to be greater than its total costs.
What is breakeven point?This is the point where the additional gain derived is more than the total costs.
Applying break even point, we'll have
Break-even point
= Fixed cost / Contribution margin per unit.
Fixed cost
= $500
Contribution margin per unit
= Selling price - Variable cost
= $10 - $5
=$5
Break-even point
= $500 / $5
= 100units
Hence, the retailer would have to sell 100 shirts for it’s marginal benefits to be greater than its total costs.
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Suppose a firm manager has a base salary of $175,000 and earns 0.5 percent of all profits. Determine the manager's income if revenues are $10,000,000 and profits are $5,000,000. A) $150,000 B) $200,000 C) $225,000 D) $300,000
Answers
The manager's income is $200,000.
The option (B) is correct.
The expression "income" for the most part alludes to how much cash, property, and different exchanges of significant worth got over a set timeframe in return for administrations or items. There is no single, standard definition: pay is characterized by the setting in which the idea is utilized.
Income includes monetary as well as non-financial upsides of recompenses and perquisites. All pay is available under personal expense except if explicitly excluded.
Given;
Fixed salary = $175,000
Earns 0.5% of all profits
Profit = $5,000,000
Manager income = Fixed salary + 0.005 * Profit
Manager's income = $175,000 + 0.005 * $5,000,000
=> Manager's income = $175,000 + $25000
=> Manager' income = $200,000
Thus, the manager's income is $200,000.
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Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
Acquired $32,000 cash from the issue of common stock.
Borrowed $38,000 cash from National Bank.
Earned cash revenues of $50,000 for performing services.
Paid cash expenses of $46,000.
Paid a $1,200 cash dividend to the stockholders.
Acquired an additional $22,000 cash from the issue of common stock.
Paid $10,000 cash to reduce the principal balance of the bank note.
Paid $55,000 cash to purchase land.
Determined that the market value of the land is $77,000.
Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
Answers
The percentage of assets that were provided by investors, creditors, and earnings is $84,800.
What is investors?An investor is any individual or other entity such as a business or mutual fund who invests money with the hope of making a profit.
A technique for company improvement called the Investors in People Standard aims to boost an organization's performance through its workforce. The management and growth of an organization's workforce aids in performance improvement and the achievement of goals.
Calculation-
Balance sheet
assets = liability + stockholder's earning,
Cash+land = notable payable+common stock+retained earning
$29800+$55000=$28000+$54000+$2800.
$84800=$84800
Income statement
Revenue-expenses =net income
$50000-$46000=$4000
Thus, it is $84,800.
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The working note and solution is attached-
Draw the organization chart of an organization with which familiar
Answers
The organization chart of an organizzation that a person is familiar with can be the education sector. The chart can begin with the chancellor if the school, the vice chancellor, the dea, college secretary, administrative head, and the departmental heads.
What is an organization chart?An organization chart refers to an image that shows the line up of heads in an institution and the ways in which they are related.
For a school,the organization chart can begin with the chancellor, the vice chancellor or vicechancellors as the case may be, the dean of studies, the college secretaries and the adminstrative ehads.
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A company has fixed costs of $96,800. Its contribution margin ratio is 44% and the product sells for $61 per unit.
What is the company's break-even point in dollar sales?
Answers
$220,000
Explanation:
Calculation for the company's break-even point in dollar sales
Using this formula
Break-Even point in dollars sales= Fixed Costs ÷ Contribution Margin
Let plug in the formula
Break-Even point in dollars sales=$96,800/44%
Break-Even point in dollars sales=$220,000
Therefore the company's break-even point in dollar sales will be $220,000.
According to the neoclassical school of economics, how does science and technology contribute to economic growth? On that basis, what lessons can you draw from applying science and technology to Vietnam's current economic growth?
Answers
Neoclassical school of economics has largely contributed to economic development through create, distribute and exploit knowledge as well as through wealth creation.
What is the meaning of Neoclassical?
Neoclassicism refers to artistic trends that draw on Western classical art and culture (usually that of Ancient Greece or Ancient Rome). Traditionally, Classicism is concerned with antiquity (very long ago, in ancient times) art or subsequent art influenced by antiquity.
Vietnam's economy was one of the worst in the world when the 20-year Vietnam War concluded in 1975, and development under the government's following five-year central plans was anemic. Per capita GDP was locked between $200 and $300 by the mid-1980s.
Recent economic performance has been influenced by scientific advancements and technological transformation. The capacity to develop, disseminate, and utilize information has become a significant source of competitive advantage, wealth generation, and quality improvements.
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Write 250 words about one qualitative and one quantitative measure you will use to evaluate the effectiveness of your final project company/product social media marketing strategies. What do you hope to learn by using that measure? What will you be able to track? For example, tracking the number of hits on a social media fan page is a quantitative measure to determine the size of your loyal customer base.
Answers
Engagement rate is a qualitative metric that measures how much engagement a post receives from its audience. We may use this to gauge the success of our posts in terms of sparking further user involvement and discourse.
The rate at which conversions occur is a quantitative indicator of how many individuals visit a business's internet presence or purchase page and proceed to take action. This may be used to gauge how effective we are at fostering relationships that lead to concrete results.
The audience we serve is responding positively to the messages we communicate through various channels, which is then resulting in sales conversions buying decisions, or other engagements with the business or website. We can choose which rate of conversions and levels of engagement to track so that we may adjust our strategy properly.
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Wildhorse Inc. made a $31000 sale on account with the following terms: 2/15, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale? Select answer from the options below
Debit Accounts Receivable for $30380 and Sales Discounts for $620.
Debit Accounts Receivable for $31000 and Sales Discounts for $620.
Debit Accounts Receivable for $30380.
Debit Accounts Receivable for $31000.
Answers
The debit to the journal entry to record the sale using the net method is C. Debit Accounts Receivable for $30380.
What is the net method?Recording sales made on credit requires recording the net amount (following deductibles) as revenue, rather than entering the gross sum and then debiting for any deductions.
The net amount of the sale is:
= Gross amount x ( 1 - discount )
= 31, 000 x ( 1 - 2 %)
= $ 30, 380
In conclusion, the Accounts Receivables are debited with $ 30, 380.
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7. Constant growth rates One of the most important components of stock valuation is a firm’s estimated growth rate. Financial statements provide the information needed to estimate the growth rate. Consider this case: Robert Gillman, an equity research analyst at Gillman Advisors, believes in efficient markets. He has been following the mining industry for the past 10 years and needs to determine the constant growth rate that he should use while valuing Pan Asia Mining Co. Robert has the following information available: • Pan Asia Mining Co.’s stock (Ticker: PAMC) is trading at $13.75. • The company’s stock is expected to pay a year-end dividend of $0.66 that is expected to grow at a certain rate. • The stock’s expected rate of return is 6.60%. Based on the information just given, what will be Robert’s forecast of PAMC’s growth rate?
Answers
Based on information given, Robert’s forecast of PAMC’s growth rate will be 11.4%.
Here, we are going to calculate Robert’s forecast of PAMC’s growth rate by using the information provided..
The formula to be deployed is Price = Dividend in 1 year/(cost of equity - growth rate)
Given Information
Pan Asia Mining Co.’s stock is trading at $13.75
Expected year-end dividend = $0.66
Stock’s expected rate of return = 6.60%.
$13.75 = $0.66 / (6.60% - Growth rate)
$13.75 = $0.66 / (0.066 - Growth rate)
$13.75*((0.066 - Growth rate) = $0.66
$0.9075 - $13.75(Growth rate) = $0.66
$13.75(Growth rate) = $0.66 + $0.9075
Growth rate = $1.5675 / $13.75
Growth rate = 0.114
Growth rate = 11.4%
Therefore, Robert’s forecast of PAMC’s growth rate will be 11.4%.
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Tarheel Computing's stock was trading at $150 per share before its recent 3-for-1 stock split. The 3-for-1 split led to a 5 percent increase in Tarheel's market capitalization. (Market capitalization equals the stock price times the number of shares.) What was Tarheel's price after the stock split
Answers
The amount of Tarheel's price after the stock split is $52.50.
In corporate business, the stock split refers to the action where the company divides its existing shares into multiple shares.
Here, we are going to calculate Tarheel's price after the stock split.The formula for the Share price after stock split is [Share price before stock split * Stock split ratio * (1 + % increase market capitalization)]
Given Information
Price stock before stock split = $1503 for 1 split5 % increase in capitalizationShare price after stock split = $150 * 1/3 * (1 + 0.05)
Share price after stock split = $150 * 1/3 * 1.05
Share price after stock split = $52.50
Therefore, the amount of Tarheel's price after the stock split is $52.50.
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Tarheel Computing's stock price after the 3-for-1 split based on the 5% increase in market capitalization is $52.50.
What is a Stock-Split?A stock split is the division of a company's shares into more shares. By such a division, the number of shares increases while the share price reduces.
For example, Tarheel's 3-for-1 stock split increases its outstanding shares by three times.
As noted in the question, market capitalization, which shows the total market value of the stock, equals the stock price times the number of shares outstanding.
Data and Calculations:Stock price per share before stock split = $150
Stock split = 3-for-1
Increase in market capitalization = 5%
Stock price after the 3-for-1 split = $50 ($150/3)
Stock price after the 3-for-1 split based on the 5% increase in market capitalization = $52.50 ($50 x 1.05).
Thus, Tarheel Computing's stock price after the 3-for-1 split based on the 5% increase in market capitalization is $52.50.
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You are given the following information for Lightning Power Company. Assume the company’s tax rate is 24 percent.
Debt: 9,000 5.8 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 420,000 shares outstanding, selling for $60 per share; beta is 1.11.
Preferred stock: 18,000 shares of 3.6 percent preferred stock outstanding, a $100 par value, selling for $81 per share.
Market: 5 percent market risk premium and 4.6 percent risk-free rate.
What is the company's WACC?
Answers
The Weighted Average Cost of Capital (WACC) for Lightning Power Company is 9.84%.
To calculate the Weighted Average Cost of Capital (WACC) for Lightning Power Company, we need to determine the cost of each component of its capital structure and their respective weights. The WACC is the weighted average of these costs.
Cost of Debt:
The debt component consists of 9,000 bonds with a 5.8 percent coupon rate, a $1,000 par value, and selling for 106 percent of par. The semiannual coupon payment is calculated as (5.8% * $1,000) / 2 = $29.
The current market price of the bond is 106% of $1,000, which is $1,060. The yield to maturity (YTM) can be calculated using financial calculators or Excel. Let's assume the YTM is 4.5%. Therefore, the cost of debt is 4.5%.
Cost of Common Stock:
The cost of common stock is determined using the Capital Asset Pricing Model (CAPM). The risk-free rate is given as 4.6%, and the market risk premium is 5%. The beta for Lightning Power Company's common stock is 1.11.
Using the CAPM formula: Cost of equity = Risk-free rate + Beta * Market risk premium. Therefore, the cost of equity is 4.6% + 1.11 * 5% = 9.71%.
Cost of Preferred Stock:
The cost of preferred stock is the dividend yield, which is the preferred dividend divided by the market price per share. The preferred stock has a 3.6% dividend yield, and it is selling for $81 per share. Therefore, the cost of preferred stock is 3.6% / $81 = 4.44%.
Next, we need to determine the weights of each component based on their market values. The market value of debt is 9,000 * $1,060 = $9,540,000. The market value of common stock is 420,000 * $60 = $25,200,000.
The market value of preferred stock is 18,000 * $81 = $1,458,000. The total market value of the company's capital structure is $36,198,000.
Now we can calculate the WACC using the formula:
WACC = (Weight of Debt * Cost of Debt) + (Weight of Equity * Cost of Equity) + (Weight of Preferred Stock * Cost of Preferred Stock).
Weight of Debt = $9,540,000 / $36,198,000 = 0.2639 (26.39%)
Weight of Equity = $25,200,000 / $36,198,000 = 0.6961 (69.61%)
Weight of Preferred Stock = $1,458,000 / $36,198,000 = 0.0401 (4.01%)
Plugging in the values, we get:
WACC = (0.2639 * 4.5%) + (0.6961 * 9.71%) + (0.0401 * 4.44%) = 2.88% + 6.78% + 0.18% = 9.84%.
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Net income was $503,000 in 2020, $473,000 in 2021, and $521,000 in 2022. What is the percentage of change from (a) 2020 to 2021, and (b) from 2021 to 2022
Answers
Answer and Explanation:
The computation of the percentage of change is as follows;
a. For 2020 to 2021
= (Net income in 2021 - net income is 2020) ÷ (net income in 2020)
= ($473,000 - $503,000) ÷ ($503,000)
= -5.96% decrease
b .For 2021 to 2022
= (Net income in 2022 - net income is 2021) ÷ (net income in 2021)
= ($521,000 - $473,000) ÷ ($473,000)
= 10.15% increase
In this way it is calculated