finance lab week 3

Damage to the parked car was $5,400 and damage to the store was $12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?

For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct?

b. What is the present value of this annuity if the opportunity cost rate is 10% annually? 10% compounded semiannually?

9. What is the present value of an 8-year annuity that makes quarterly payments of $73 if

In Question 6, the payment occurs at the beginning of each period rather than at the end, this type of annuity is named as annuity due.

1. Visit the website of a large national bank, regional bank, or credit union, and use the information you find there to answer the questions below. EXAMPLE: Some large banks you might consider include Bank of America®, JPMorgan Chase®, Wells Fargo®, Citibank®, and U.S. Bank®.

Variable Costs. Overall the company had favorable variances in variable costs, excluding the efficiency variance. As expected, since Competition Bikes sold less than predicted, their related costs: direct materials, direct labor, manufacturing overhead and variable expenses were less than budgeted amounts showing a favorable variance. The labor and overhead revenue and spending variances however, showed unfavorable due to actual output despite the changes to the flexible budget. With the prediction of decreases costs based on sales, these costs should have also decreased. There is no further information on why these rates were high, Competition Bikes will need to look into those expenses.

price is $25 per share. The most recent dividend was $1 and the growth rate is 5%.

1-2. Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Board's Why Governmental Accounting and Financial Reporting Is—and Should Be—Different.

a. I = 4%, PV = $74,000, N = 20, FV = $162,143.11 a. Using Excel enter '=-FV(4%,20,,74000) = $162,143.11 salary needed to keep pace with inflation. b. FV = $2 million, N = 25, I = 8%, PMT = $27,357.26 a. Using Excel, enter '=-PMT(8%,25,0,2000000)' = $27,357.26 as the necessary annual payment to be saved. c. PMT = $160,000, N = 20, I = 4%, PV = $2,174,452.22 a. Using Excel, enter '=-PV(4%,20,160000)' = $2,174,452.22 needed for retirement. d. FV = $3.5 million, N = 30, I = 7%, PMT = $37,052.41 a. Using Excel, enter '=-PMT(7%,30,0,3500000)' = $37,052.41 annual payment to be saved.

If the present is Year 0 and rates compound annually, in what year does the first outlay of $45,000 occur? Hint, you’re using the perpetuity approach to valuation.

I for one, know the benefits of having a personal accountant, will definitely be investing in meeting with one. I would much rather be safe than sorry. I might even just meet with one every few months, just to make sure I am on the right track. This could benefit the business community by avoiding debt, and financials crisis. It would help people be more involved in the business community by allowing people to be able to invest in stocks due to the fact they know are comfortable in their

2 Required rate of return on equity is estimated by using CAPM. See Details »

The CEO of Dynamic Manufacturing was at a conference and talked to a supplier about a new piece of equipment for its production process that she believes will produce ongoing cost savings. As the Operations Manager, your CEO has asked for your perspective on whether or not to purchase the machinery.

| This assesses a company’s financial durability by examining whether it is at least profitable enough to pay off its interest expenses.