If he wanted the cash award of each of the five prizes to be $45,000 and his estate could earn 7% per year, how much would he need to fund his prizes

Answers

Answer 1
Answer:

Answer:

The answer is $3,214,285.71

Explanation:

Price of each award is $45,000

And there are 5

Therefore, we have 5 x $45,000

=$225,000.

So, $225,000 is the future value.

Rate of return(r) in 7% and it is being assumed that it is forever.

So, so how much will be needed to fund his prizes(present value)?:

PV = FV/r

= $225,000/0.07

=$3,214,285.71


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Answers

Answer and Explanation:

The Journal entries are shown below:-

1. Investment in bond Dr, $330 million

       To Cash $300 million

        To Discount on bond investment $30 million

(Being investment in bond is recorded)

2. Cash Dr, $8.25 million ($330 million × 5% × 6 ÷ 12)

Discount on bond investment Dr, $0.75 million

     To Interest revenue $9 million ($300 million × 6% × 6 ÷ 12)

(Being recognition of bond interest and discount is recorded)

3. The computation of investment is shown below:-

Investment = $300 million + $0.75 million

= $300.75 million

4. The journal entry is shown below:-

Cash Dr, $290 million

Discount on bond inventment Dr, $29.25 million

Loss on sale of investment Dr, $10.75 million

          To inventment in bond $330 million

(Being sale of investment is recorded)

Bedeker, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

Answer:

The required rate of return is 7.20%

Explanation:

The price of a share that pays a particular dividend amount in perpetuity is given by the below formula:

price of share=dividend/required rate of return

price of share is $91.00 per share

dividend payable in perpetuity is $6.55

required rate of return is unknown

$91=$6.55/required rate of return

required rate of return =$6.55/$91

                                       =7.20%

to confirm the required of return,I divided the by the required rate of return as shown below:

6.55/0.0.72=$90.97 .approximately $91

That is a way to validate the computed required rate of return

4Select the correct answer.
What is the term for protection that guarantees payment to you in the event of financial loss?
Ο Α.
claim
B.
insurance
C.
premium
Reset
Next

Answers

it would be B.insurance

Mary, a merchant, was in the business of selling flowers to local florists. Melissa was the owner of Little Flower, Inc. and she regularly purchased her flowers from Mary. One day, Melissa called Mary and ordered 20 dozen roses, 15 dozen carnations, 10 dozen daisies, baby breaths, 6 dozen tulips, and some plants. Everything totaled $1,200, and was to be delivered in 14 days. After the two ended their call, Mary sent Melissa an e-mail detailing the order and her acceptance. Melissa never responded to the e-mail. Eleven days later, Mary delivered the merchandise to Melissa, but she refused shipment. Mary sued Melissa for breach of contract. What is the likely result? Mary wins because the contract involved specially manufactured goods. Mary loses because Melissa did not sign anything. Mary loses because the contract was not in writing. Mary wins because Melissa failed to object to the merchant's confirmation memorandum.

Answers

Answer:Mary wins because Melissa failed to object to the merchant's confirmation memorandum.

Explanation:

A contract is first establish based on offer and acceptance between two parties. The telephone conversation of Mellisa to Mary constitute a valid offer and the email communication of Mary constitute a valid acceptance.

Furthermore the time interval between the email communication and delivery of the goods are enough period for Mellisa to counter the acceptance memorandum of Mary which she failed to carry out. This is the reason Mary wins.

Cost sharlng and Medic beneficlarles:The states possess an option of charging premium for establishing spending out-of-pocket respect to requirementsof cost sharing on Medic enrollees. The out-of- pocket costs include copayments, deductibles, coinsurances, andother charges- The maximum costs out of pocket are limited; however states impose high charge for target groupsof high income people. Some vulnerable groups are exempted from most costs and copayments not beingcharged over services. They include old people, kids, and pregnant women.

Answers

Answer:

Medicaid can provide cost-sharing assistance. Depending on your income, you may qualify for the Qualified Medicare Beneficiary (QMB). If you are enrolled in QMB, you do not pay Medicare cost-sharing, which includes deductibles, coinsurances, and copays.

Explanation:

The Centers for Medicare & Medicaid Services (CMS) are responsible for implementing laws and various forms of guidance, sub-regulatory guidance operational updates and technical clarifications passed by Congress related to Medicaid and the Basic Health Program to explain what states and others need to do to comply.

There are 4 “metal” categories of health insurance plans: Bronze, Silver, Gold, and Platinum. These categories show how you and your plan share costs. Plan categories are independent from quality of care.  The total costs for health care include a monthly premium bill to the insurance company and out-of-pocket costs, which have a big impact on your total spending on health care and sometimes more than the premium itself as the out-of-pocket maximum is the amount you have to spend for covered services in a year, and only after you reach this amount, the insurance company pays 100% for covered services; and the deductible, which is the amount you have to spend for covered health services before your insurance company pays anything (except free preventive services). The Plan and network types allow you to use or not doctors or health care facilities. Plans & prices are issued according to the income and household information and they determine the copayments and coinsurance, which are payments you make each time you get a medical service after reaching your deductible

There are plans that have very low monthly premiums, but have high deductibles and pay less of your costs when you need care.

If you qualify for "cost-sharing reductions" (CSRs), Silver plans may offer good value because of a lower deductible. The income determines where your estimate falls in the range for cost-sharing reductions.

A Gold plan or Platinum plan generally have higher monthly premiums but pay more of your costs when you need many doctor visits or regular prescribed medication.

Answer:

^^^^

Explanation:

Depletion is: Multiple Choice The process of allocating the cost of natural resources to the period when it is consumed. Calculated using the double-declining balance method. Also called amortization. An increase in the value of a natural resource when incurred. oo The process of allocating the cost of intangibles to periods when they are used.

Answers

Depletion is the process of allocating the cost of natural resources to the period when it is consumed.

What is the significance of depletion?

Depletion can be regarded the lowering down in the level of quantity of a thing or an element, generally due to consumption, in such a way that a few costs are incurred upon such lowered quantity-levels.

In simple words, depletion can be regarded as the incurring of costs upon the reduction of a quantity of something. In the above case, the quantity of natural resources is reduced, causing depletion.

Hence, option A holds true regarding depletion.

Learn more about depletion here:

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