Answer:
The correct answer is Option A. you will need to deposit $111,111 so that you can fund the scholarship forever, assuming that the account will earn 4.50% per annum every year.
Explanation:
Perpetuity is the cash flows to be receivable for an unspecified period of time. The present value of a perpetuity is calculated as the cash flows divided by the interest rate provided.
Given data;
Amount needed to be deposited = $5000
Interest rate = 4.50%
Present Value of Perpetuity = Cash Flows ÷ Interest rate
= $5000 ÷ 0.045
= $111,111
Answer:
Published Category
Explanation:
Content distribution is simply the act of promoting content to online audiences in multiple media formats through various channels. Content distributon channels can come in 4 ways.
1. Paid
2.Owned
3. Earned
4. Published
This falls under the published category because these advertisements are generally found in the form of published media such as books, magazines and even movies.
Answer:
Journal entry to record the Sale of Patent
Debit : Cash $750,000
Credit : Patent at Book Value $120,000
Credit : Profit and Loss $630,000
Journal entry to record the Sale of Equipment
Debit : Cash $325,000
Debit : Profit and loss $75,000
Debit : Accumulated depreciation $150,000
Credit : Equipment at Cost $550,000
Explanation:
During a sale transaction the entity recognizes 1. The Cash Proceeds resulting from the sale, 2. The Profit or loss resulting from the sale, 3.The entity derecognizes the Cost or Book Value of the Asset as well as the Accumulated depreciation.
A profit of $630,000 has been earned as a result of the sale of the Patent, whereas a loss of $75,000 has been incurred as a result of sale of Equipment.
Answer:
7.85%
Explanation:
Face value of bond =$2000
Price of current bond= face value× 106.5% = $2130
Term= 25 years×2= 50 period
Coupon rate= 7%×1/2= 3.5%
Coupon amount= coupon rate×face value = $2000×3.5/100
=$70 for a period
YTM of bond= [coupon amount+ (maturity value-current price)/Term]/0.6×current price+0.4×maturity value]
YTM of bond= 6.487% per annum
Total market value of bond= 8,400bonds× $2130= $17,892,000
Market value of common stock= 275,000shares × 62.50= $18012500
Weight of common stock= 0.490009385
Weight of preferred stock= 0.023259294
WACC= Wd* Kd + Wc*Kc + Wp*Kp
= 0.486731321× 4.86525% +
0.490009385× 10.9624275+
0.023259294× 4.7368421%
=7.849%
= 7.85%(rounded)
Thus, WACC is 7.85%
You run out and call 911 or whatever the number is for you and if you’re on fire stop drop and roll because if you run you’re only giving the fire more oxygen
