Answer:
Required return for Savitz: 10.95%
Explanation:
<u>Considering the gordon model we have to solve for the cost of capital (Ke)</u>
D1 2.08
P 42
g 0.06
Ke 0.10952381
The total cost of the ipad sold on ebay is $908.70
Answer: Fall in Benchmark Interest Rates.
Explanation:
This activity was caused by a Refinancing Drive. Refinancing is when entities get a new loan with a lower interest rate and pay off the older loan with a higher interest rate so that they can pay at the lower rate.
Bond interest rates are usually fixed so when interest rates in a country fall, bond holders don't benefit from that. One option they have to take advantage of that is to go on a Refinancing Drive and issue new bonds at those lower rates and then pay off the older ones.
That is what Apple, Deere, and Walt Disney have done.
Answer:
Explanation:
Principal amount $165000
Rate - 11%
time - 180
Interest = 165000*0.11=$18150
Total Maturity = 165000*0.11*180/365= 8950.68
Interest Expense for year 2017 = 165000*0.11*61/365 = 3033
Interest Expnese for year 2018 = 165000*0.11*119/365 = 5917
Ans. April 28, 2018
Answer:
C. $200,000.
Explanation:
The computation of the impairment loss is shown below:
= Book value of the machinery - fair value of machinery
- $760,000 - $560,000
= $200,000
Hence, the impairment loss is $200,000
Therefore the correct option is c.
We simply applied the above formula so that the correct value could come
And, the same is to be considered