That is a pretty exclusive club and for the most part they are not interested in highly volatile companies like Apple and Google. Sure, IBM is part of the DJIA, but that is about as stalwart as you can get these days.
The typical profile for a DJIA stock would be one that pays fairly predictable dividends, has been around since money was invented, and are ...
Traditionally, the Dow Jones Industrial Average (DJIA) was only comprised of stocks that were traded on the New York Stock exchange. Neither Apple (AAPL) nor Google (GOOG) are traded on the New York Stock Exchange but instead are traded on NASDAQ. All NASDAQ tickers are four characters long and all NYSE tickers are only three or less characters long (e.g. ...
In addition to the answers provided above, the weight the Dow uses to determine the index is not the market capitalization of the company involved. That means that companies like Google and Apple with very high share prices and no particular inclination to split could adversely effect the Dow, turning it into essentially the "Apple and Google and then some ...
We make $4.1M in sales during the year, all of it goes to AR, plus we had a beginning AR balance of $650k. If no cash was collected, our AR balance at year end would be $4.75M. We know that our AR balance is $350k at year end, so we know that we must have collected the difference in cash over the year, $4.4M.
Alternatively, if none of the $4.1M went to AR, ...
Here's the way I think you should analyze it:
The car costs $22500. That's the cash price if you walk into the dealership and plunk down 225 $100 bills, and that's what YCars is charging you.
XCars is selling the same car in exchange for $2000 up front, and 36 equal monthly payments of $638.88. In effect, XCars is lending you money at some interest ...
Coca Cola doesn't seem to have any preferred shares outstanding. From the annual report, it does say that the number of common shares outstanding was 2,294,316,831 as of February 22, 2011. (cover page, right before the horizontal break)
But normally, you can find it either toward the beginning of the document or in the statement of shareholder's equity.
The Dow Jones Industrial Average (DJIA) is a Price-weighted index. That means that the index is calculated by adding up the prices of the constituent stocks and dividing by a constant, the "Dow divisor". (The value of the Dow divisor is adjusted from time to time to maintain continuity when there are splits or changes in the roster.) This has the curious ...
The first payment of 10 accumulates 40 cycles of interest, i.e. 10*1.05^40 and the last payment of 40 accumulates 1 cycle of interest, 40*1.05. To get the total these are added together along with all the payments in-between :-
10*1.05^40 + 10*1.05^39 + 10*1.05^38 + 10*1.05^37 + 10*1.05^36 +
10*1.05^35 + 10*1.05^34 + 10*1.05^33 + 10*1.05^32 + 10*1.05^31 +
The actual interest rate has not changed. The interest charged has, and the effective interest rate calculated after the fact would, but the actual rate itself hasn't. You just end up paying less interest, because the basis for interest calculation changed halfway through.
Compound interest is calculated on a (in your case, daily) basis based on the ...
This might help illustrate the solution. I look at NPV of each cash flow. i.e. take each payment and calculate the PV of that future amount. $5000/1.025 means that $5000 in a year is worth $4878 if discounted by the 2.5%. The effect compounds, (1.025)^2 for year 2 etc.
At a glance, a total $20K would require a far higher cost of capital to make those ...
Another, perhaps simpler way to look at and calculate the result.
Find the future value, at the time of the last payment, of 4 ordinary annuities, all with identical payments of $10 each, and an interest rate of 5% per payment period. The four annuities have lengths of 40, 30, 20 and 10 payments, and all end at the same moment.
So you need to evaluate
This sounds a lot like a homework question. I think that the policy from the Money.SE rules is that we'll be glad to help you structure the approach, but won't give you the answer outright.
For any investment decision, there are 5 main facts you need to figure out.
No. of Periods
Cash Flows per Period
You can get the "correct" answer by using 6% as the interest rate everywhere in the Present Value of an Annuity formula that you quote..
Something that the questioner got "wrong": they didn't fully specify the target yield rate; they should have said "12% compounded semi-annually" since that assumption produces their "correct" answer...
You simply need to find the "effective annual interest rate", since the compounding rate for the payments is one year. The compounding period must equal the payment period for the regular payment formulae to work.
So just take the nominal annual rate , 8% compounded monthly, and turn it into a monthly rate, by dividing by 12.
Then take this monthly rate,...
Interest per month is 12th root of annual interest, or a multiplier of about 1.0327%.
At end of 1st month, you start with $0, add interest on $0, and add $600, getting $600.
2nd month: start with $600, add 0.0327% interest plus $600, getting $1219.62.
3rd: balance plus interest plus deposit yields $1859.50
Repeat ad nauseam. Easier with a spreadsheet or ...
Your periodic interest rate is 0.07/12 = 0.005833333.
You save $100 at the beginning of each month.
When is the interest posted? Let's say at the end of the month, before you make your next savings deposit.
So at the beginning of month 1, you have $100.
At the end of month 1, you have $100 times 1.005833333, or $100.58.
At the beginning of month 2, you ...
From The Coca-Cola Company website, section for Investors: Stock History, Issues
Original issue -- 600,000 shares
100,000 preferred, par $100 each
500,000 common, without nominal or par value
Eliminated 100,000 preferred in November.
This means there were preferred shares issued in 1919. However, ...