pleae show all steps 12 The real growth of money interest rate for the past year

Question

pleae show all steps

12 The real growth of money interest rate for the past year has been 4% and the general inflation has been 2.5%, the combined (market interest rate is closest to what value? (3 Pts) a. 1.5% b. 6.5% c. 6.6% d. 10.0% e. None of the above 13. The following information has been taken from the financial statements available for the ABC Company. Determine the net income. (5 pts) Accounts Payable Accounts Receivable Income Taxes Owner's Equity Cost of Goods Sold Overhead Expense $4,000 $12,000 $6,000 75,000 $42,000 $10,000 $80,000 Sales Revenue a. $34,000 b. $30.000 c. $18,000 d. $22,000 S26,000 Net Income = Sales Revenue-COGS-Overhead Ex.-Taxes The U of A is planning for an endowed chair in the Engineering College. It is anticipated that this chair will require funding in perpetuity of $300.000 per year. If the UA Foundation realizes an annual yield of 4.0% on its investments, the Capitalized Equivalent is closest to: (4 Pts) 14. a. S8.0M b. $6.5M c. $ 7.5M d. S 7.2M e. $6.0M

Explanation / Answer

13 Sales rev 80000 Expenses 10000 COGS 42000 Taxes 6000 Net Income 22000 14 P 300000 R 0.04 Capitalized eq P/R 7500000 12 A as 4 is real, but inflation is 2.5%, so actual benefit is of 4-2.5 = 1.5 % 13 D As explained 14 D As explained

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