Future value fv ans fv - Study guides, Class notes & Summaries

Chapter 3—Consolidated Statements: Subsequent to Acquisition MULTIPLE CHOICE Scenario 3-1 Pedro purchased 100% of the common stock of the Sanburn Company on January 1, 20X1, for $500,000. On that date, the stockholders' equity of Sanburn Company was $380,000. On the purchase date, inventory of Sanburn Company, which was sold during 20X1, was understated by $20,000. Any remaining excess of cost over book value is attributable to patent with a 20-year life. The reported income and divi...

What is the time value of money Ans- refers to the observation that it is better to receive money sooner than later Future Value Versus Present Value Ans- Future value is compounding, present value is discounting Future Value of a Single Amount Ans- the value in future dollars of some cash flow today The Equation for Future Value Ans- FV=PV(1+r)^n -FV(n)= future value or payoff after n periods -PV(0)= initial principal or present value -r= per period compound rate of interest -n= nu...

FINC 3610 Exam 2 CH.5 Sirmans Questions & Answers Example of assets? - ANS-Property, plant, and equipment, stocks, options, bonds, patents, opportunities, knowledge, reputation, etc. What is an asset in terms of financial analysis? - ANS-a sequence of cash flows What is the value of an asset today? - ANS-a function of the cash flows expected to occur in the future 3 key dimensions of cash flows - ANS-size, timing, and uncertainty Cash flows at different points in time are like different? ...

Richard wants to have an annual retirement income of $100,000 (payable at the beginning of each year) protected against 3% inflation. Assuming a 7% after-tax rate of return and a retirement period of 30 years, how much money does Richard need in order to meet his goal? Explain how you need to input this on the calculator and why. - ANS Step One - Set the calculator to BEGIN. Step Two - Calculate the inflation adjusted rate of return (One plus the Rate of Return divided by One plus the...

FIN 201 EXAM THREE WITH CORRECT ANSWERS | GRADED A+ | 2024 An ATM with a service fee of $4 is used by a person 100 times in a year. What would be the future value in 5 years (at a 5% rate) of the annual amount paid in ATM fees? ANS, Annual Fee: $4 x 100 = $400 FV = Annual fee x FV factor $400 x 5.526 = $2,210.40 A payday loan company charges 2% interest for a 4 week period. What would be the annual interest rate for that company? ANS, .020 x (52/4) = .260 or 26% What would be th...

File: ch03, Chapter 3: Indirect Investing Multiple Choice Questions 1. Which of the following is not a characteristic of investments companies? a. pooled investing b. diversification c. managed portfolios d. reduced expenses Ans: d Difficulty: moderate Ref: Investing Indirectly 2. In order to avoid paying income taxes, an investment company must: a. be classified as a non-profit organization b. invest only in municipal bonds. c. pass on interest, dividends, a...

Return on Investment measurements - ANS-ROE, ROIC, ROA, Dividend Yield LLC - ANS-A Limited Liability Company (LLC) is a relatively new business structure, offered via state law, that offers owners ("members" in LLC language) pass-through taxation of profits or losses, personal liability protection, and, unlike S corporations, no limits on the type or number of investors. Unlike an S corporation, an investor in an LLC does not need to be a "natural" person nor does that person need t...

Not all cash a company generates will be returned to the investors. Which of the following will NOT reduce the amount of capital returned to the investors? a) retained earnings b) taxes c) dividends - correct answer Dividends This subarea of finance looks at firm decisions in acquiring and utilizing cash received from investors or from retained earnings. a) investments b) financial management c) financial institutions and markets - correct answer b) Financial Management ...

RECA Commercial EXAM 2 Correctly Solved 100% Pass Commercial real estate assets have a number of attributes that make them unique relative to other types of investments. These attributes include the following: (x10) *ANS* 1. They involve land 2.Transaction time frames are long 3. Transaction costs are high 4. they are expensive 5. They are long lasting 6. Highly regulated 7. have a long production cycle 8. are management intensive 9. are heterogeneous 10. Involve measuring return on ...

EXCEL CRASH COURSE EXAM WITH VERIFIED QUESTIONS AND CORECT ANSWERS GRADED A+ move back and forth between the worksheets in a workbook - ANS-*Ctrl PageUp* or *Ctrl PageDown* open a file - ANS-*alt f o* *ctrl o* MIN and MAX - ANS-=MIN(number1,number2,...) returns the smallest number in a specified set of values) =MAX(number1,number2,...) returns the largest number in a specified set of values COUNT - ANS-=COUNT(value1, value2,...) counts the number of cells that contain numbers withi...