Answer:
PV= $248,368.53
Explanation:
Giving the following information:
Future Value (FV)= $400,000
Number of periods (n)= 5
Interest rate (i)= 10% = 0.1
To calculate the present value (PV), we need to use the following formula:
FV= PV*(1í)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 400,000 / (1.1^5)
PV= $248,368.53
Question 1 Completion with Options:
A. used equipment
B. storage warehouse
C. land for future building site
D. new office furniture
E. apartment complex
F. new delivery truck
Answer:
1. The assets purchased in the current year that are eligible to be expensed under Section 179 assuming the cost does NOT exceed the limitations are:
A. used equipment
D. new office furniture
F. new delivery truck
2. $561,000 is the maximum to be expensed with an adjusted basis of 100% for MACRS
Explanation:
There is a maximum deduction of $1,050,000 under section 179. The section affords eligible taxpayers the opportunity to reduce their tax burden in the first year that they purchase eligible properties.
(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
(C) One tool of corporate governance is a company's tax avoidance strategy.
(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
(E) One tool of corporate governance is stock repurchases.
Answer:
Correct Answer is "A"
(A) One tool of corporate governance is choosing a good investment banker.
Answer:
(a) What is the yield to maturity (annual compounding) on the bond?
Yield to maturity (YTM) = (face value / market price)¹/ⁿ - 1
YTM = ($1,000 / $800)⁰°² - 1 = 0.0456 or 4.56%
(b) Assume the yield to maturity on comparable zeros increases to 7% immediately after purchasing the bond and remains there. Calculate your annual return (holding period yield) if you sell the bond after one year.
holding period yield = (end of period value - initial value) / initial value
initial value = $800
end of period value = ?
to determine the end of period value we must solve:
7% = ($1,000 / ?)⁰°²⁵ - 1
1.07 = ($1,000 / ?)⁰°²⁵
1.07⁴ = $1,000 / ?
? = $1,000 / 1.3108 = $762.90
holding period yield = ($762.90 - $800) / $800 = -4.64%
(c) Assume yields to maturity on comparable bonds remain at 7%, calculate your annual return if you sell the bond after two years.
1.07³ = $1,000 / ?
? = $1,000 / 1.225 = $816.30
holding period yield = ($816.30 - $800) / $800 = 2.04%
annualized return = (1 + total return)¹/ⁿ - 1 = (1 + 0.0204)¹/² - 1 = 1.01%
(d) Suppose after 3 years, the yield to maturity on similar zeros declines to 3%. Calculate the annual return if you sell the bond at that time.
1.03² = $1,000 / ?
? = $1,000 / 1.0609 = $942.60
holding period yield = ($942.60 - $800) / $800 = 17.83%
annualized return = (1 + total return)¹/ⁿ - 1 = (1 + 0.1783)¹/³ - 1 = 5.62%
This business related question deals with the calculation and understanding of yield to maturity and holding period yield related to a zero-coupon Treasury bond. The yield to maturity is the estimated total return if a bond is held until it matures. The holding period yield is dependent on the current market conditions and may alter if the bond is sold before it reaches its maturity.
To answer these questions, you first need to understand key concepts related to bonds. A zero-coupon bond is a bond that doesn't give regular interest payments to the investor. Instead, the investor purchases the bond for a price lower than its face value, then receives the face value when the bond reaches maturity. The difference represents the investor's profit.
Let's handle each sub-question in the context of a five-year zero-coupon Treasury bond that you bought for $800 but has a face value of $1000:
a) The yield to maturity (YTM) is the total return anticipated on a bond if it is held until it matures. Yield to maturity is expressed annually as a percentage. In this case, the equation to solve for yield to maturity is: $1,000 = $800*(1+YTM)^5. Normally, it's impossible to directly solve this equation for YTM (without using calculators or software with financial functions), making it a more complex business topic.
b & c) The holding period yield is different than the yield to maturity and takes into account the current market conditions. In this scenario, if interest rates were to rise to 7%, the bond's value would decrease, impacting your returns if you decided to sell before maturity.
d) The same concept applies if yield to maturity changes after 3 years or at any other time before maturity. An alteration in the market interest rates would affect the price at which you could sell your bond, hence influencing your annual return.
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the law in pursuit of free music. In reality hardcore fans "are extremely enthusiastic about paid-for services, as long as they are suitably compelling, he said.
People who download unlicensed music tend not buy legal digital music.
A True
B False
C Cannot Say
The answer to the prompt that "People who download unlicensed music tend not buy legal digital music" is False.
Judging from the passage above, the answer to this prompt is false.
The passage makes it clear that those who regularly downloaded unlicensed music also "spent an average of £5.52 a month on legal digital music."
This shows that this crop of individuals are willing to purchase legal digital music.
Learn more about unlicensed music here:
Answer:
The correct answers are letters "B" and "C": Talk about his three summer internships; Emphasize his leadership position in an on-campus organization.
Explanation:
Employers tend to look for relevant information on resumes. Usually, applicants that go further in selection processes are those whose resumes highlighted outstanding, unique information that shows the applicants have skills not easy no find for recruiters.
Thus, Andrew should include his core competencies on his resume but pointing out capabilities that employees might be interested in such as leadership and teamwork. In case he has remarkable experiences such as cultural exchanges or internships, they must be added to his curriculum vitae as well.
When developing his brand, Andrew should emphasize his three summer internships, and his leadership role in an on-campus organization, and include referrals. These factors demonstrate practical experience, leadership skills, and personal recommendations which are highly valued by potential employers.
As Andrew works on developing his brand, all the options presented should be utilized to a certain extent as they each provide valuable information about his experiences and qualifications. However, some aspects may carry more weight than others. Firstly, mentioning his three summer internships, where he gained practical experience, will go a long way. Employers value hands-on experience since it shows a candidate's initiative to learn and thrive in a real-world environment.
Secondly, his leadership position in an on-campus organization should be highlighted. Leadership roles demonstrate skills such as teamwork, management, and the ability to overcome challenges, which are valuable in any job role.
Lastly, providing referrals or recommendations can be another great asset. Referrals act as testimonials of his abilities, work ethic, and accomplishments.
His GPA and the classes he took might be less influential, depending on the specific job or industry he is interested in.
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Answer:
Most of the question is missing, so I looked for a similar one and found the attached image.
CPI = (current year price × base year quantity) / (base year price × Base year quantity)
CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150
CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75
CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140
CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82
To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.
The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:
For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.
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