Answer:
The present value of the savings=$37,064.22
Explanation:
The present value of the savings is the amount that it worths today, this would be done in two stages;
The first stage is to determined the present of the first cash savings as follows:
PV of the first payment = 4,000 × (1.09)^(-1)=3,669.72
Second step is to determine the present value of the declining perpetuity
PV of declining perpetuity. A perpetuity is the series of cash flow occurring for the foreseeable future of years.
A- 4,000, g-negative growth rate = 1%,
interest rate = 9%
PV in year 1 = 4,000× (1-0.09)/(0.09+0.01)
= 36,400
PV in year 0 = 36,400 × (1.09)^(-1) = 33,394.49
The present value of the savings = 33,394.49 + 3,669.72= 37,064.22
The present value of the savings=$37,064.22
In case of resale of goods arising out of a breach of contract, if the seller sets aside goods intended for the contract or completes the manufacture of such goods, he is:
Answer:
not obligated to resell the goods to other buyers
Explanation:
In the course of selling goods, a breach of contract could arise either on the part of the seller or buyer. When this occurs, there are options that the two parties could consider. For a seller who suffers a breach of contract after the completion of the manufacture of goods, he has several actions which he could take. One of them is the resale of these goods to another buyer and sue the buyer for losses that were incurred during the manufacturing process.
However, it is not compulsory that he resells the goods to other buyers. He could also decide to retain the goods until the goods are paid for by the buyer. Another option is to stop the goods if they are already in transit.
Sue is considering purchasing a new vacuum cleaner. Which of the following sets is she using when she is ready to make the final decision? Group of answer choices Total set Choice set Awareness set Consideration set
Answer:
choices Total.
Explanation:
By being ready to make the final purchase decision, Sua is using the choices total to make its decision.
The purchase decision process arises due to a need, from the emergence of that need the consumer will seek solutions to solve his problem, which means evaluating the alternatives related to the product or service he wants to buy, such as value, benefits, brand , quality, design, etc., so when all these requirements are satisfied, the consumer actually makes the purchase and satisfies his needs.
you are going to deposit $19000 today. You will earn an annual rateof 3.3 percent for 11 years, and then earn an annual rate of 2.7 percent for 14 years. how much will you have in your account in 25 years?
Answer:
After 25 years you will have in your account $42,782.05.
Explanation:
First find the Future value of $19000 invested today at the end of 11 years.
PV = - $19,000
Pmt = $0
P/yr = 1
r = 3.30%
n = 11
FV = ?
Using a Financial calculator, the Future Value (FV) after 11 years will be $27,155.46.
Use the $27,155.46 to find future value at the end of the next 14 years at the rate of 2.70%
PV = - $27,155.46
Pmt = $0
P/yr = 1
r = 3.30%
n = 14
FV = ?
Using a Financial calculator, the Future Value (FV) after 14 years will be $42,782.05.
Thus, after 25 years you will have in your account $42,782.05.
a friend wants to borrow money from you. He states that he will pay you $3000 every 6 months for 12 years with the first payment exactly 3 years and six months from today. The interest rate is an APR of 5.3 percent with semiannual compounding. What is the value of the payments today?
Answer:
$45,111.41
Explanation:
For calculation of value of the payments today first we need to find out the value at 3 years which is shown below:-
Value at 3 years = PMT × (1 - (1 ÷ (1 + r^n))) ÷ r
= $3,000 × (1 - (1 ÷ (1.0265 ^24))) ÷ 0.0265
= $52,776.45
Now, The value of the payment today = Value at 3 year ÷ (1 + r^n)
= $52,776.45 ÷ (1.0265^6)
= $45,111.41
Therefore we have applied the above formula.
Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions.
1. Purchased 5,000 treasury shares at $45 per share.
2. Resold 2,000 of the treasury shares at $49 per share.
3. Resold 500 of the treasury shares at $40 per share.
Indicate the effect each of the three transactions has on the financial statement categories listed in the table below, assuming Joe Dumars Company uses the cost method.
Answer:
Transaction 1
Assets - Decrease by $225,000
Cash expended to acquire shares = 5,000 * 45 = $225,000
Liabilities - No effect
Stockholders' equity - Decrease by $225,000
Increase in Treasury shares leads to decrease in the amount stockholders hold.
Paid In Capital - No effect
Retained Earnings - No Effect
Net Income - No Effect
Transaction 2
Assets - Increase by $98,000
Cash increased because of sale of stock = 2,000 * 49 = $98,000
Liabilities - No effect
Stockholders' equity - Increase by $90,000
= 2,000 * 45 = $90,000
Cost method means that when debiting from Treasury account, use original cost.
Paid In Capital - Increase by $8,000
If stock is sold for amount different from what it was bought, it goes into this account. If it is larger than it was bought for then this account increases and vice versa.
Retained Earnings - No Effect
Net Income - No Effect
Transaction 3
Assets - Increase by $20,000
Cash from sale of stock = 500 * 40 = $20,000
Liabilities - No effect
Stockholders' equity - Increase by $22,500
= 500 * 45 = $22,500
Paid In Capital - Decrease by $2,500
If stock is sold for amount different from what it was bought, it goes into this account. If it is smaller than it was bought for then this account decreases and vice versa.
Retained Earnings - No Effect
Net Income - No Effect
The Box Manufacturing Division of the Allied Paper Company reported the following results from the past year. Shareholders require a return of 9%. Management calculated a weightedminusaverage cost of capital (WACC) of 7%. Allied's corporate tax rate is 30.
Sales $700,000
Operating income $175,000
Total Assets $1,500000
Current liabilities $600,000
What is the division's Return on Investment (ROI)?
A) 25.00%.
B) 11.67%.
C) 40.00%.
D) 46.67%.
Answer:
Return n investment = 11.67%
Explanation:
Return on Investment is the proportion investment that is earned as operating income.
For the division, the return on investment would be the proportion of te investment in assets that is earned as net income.
This would be determined as follows;
Return n investment = (Net income÷ Operating assets) × 100
Return n investment = (175,000 ÷ 1,500,000) × 100= 11.67%
Return n investment = 11.67%
Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the costs should be expensed or capitalized (included in the cost of the plant assets on the balance sheet.) For costs that should be included in plant assets. Indicate in which category of plant assets (Equipment. Building. or Land) the related costs should be recorded on the balance Sheet.
a. Invoice cost to purchase Equipment
b. Sales tax on new equipment purchased
c. Cost to lay foundation for a new building
d. Repair costs to fix new equipment damaged by the crew that unpacked it
e. Charges incurred to train employees to use new equipment
f. Construction costs for a new building to be used in operations
g. Attorney fees incurred to complete the purchase documents for a new plant warehouse
h. Freight costs to ship the equipment From the manufacturer to the warehouse
Answer:
a. Capitalized : Equipment
b. Expensed
c. Capitalized : Building
d. Expensed
e. Capitalized : Equipment
f. Capitalized : Building
g. Capitalized : Building
h. Capitalized : Equipment
Explanation:
The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.
The costs exclude amounts collected in tax on behalf of third parties
Also not Capital expenditures increase the earning ability of the asset whilst revenue expenditure is the maintenance of such asset.
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000. Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation. In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.
Prepare a memo for the tax research file describing the tax consequences of the stock sale. Jacob’s address is 925 Arapahoe Street, Boulder, CO 80304.
Answer:
Explanation:
Given that :
Jacob Corcoran bought 10,000 shares of Grebe Corporation stock two years ago for $24,000.
Last year, Jacob received a nontaxable stock dividend of 2,000 shares in Grebe Corporation, and
In the current tax year, Jacob sold all of the stock received as a dividend for $18,000.
The objective is to prepare a memo for the tax research file describing the tax consequences of the stock sale.
From the tax research file:
The gain on the sale of the 2,000 shares is calculated by the difference from the sales price and the shares sold.
I.e $24000 - $18000 = $6000
The tax rate on the $2000 = Purchase price of the shares/ (Original shares bought + new shares)
The tax rate on the 2000 shares = $24000/($10000+$2000)
The tax rate on the 2000 shares= $24000/$12000
The tax rate on the 2000 shares= $2 / shares
The Gain in the share = selling price - tax basis in the 2,000 new shares
The Gain in the share = $18000 - $4000
The Gain in the share = $14000
∴
This is the long capital gain i.e $14000
The memo in summary goes thus:
The amount of $24000 is being paid by you for 10000 shares of stock in Grebe Corporation in which a stock dividend of 2000 was received. However, the share is sold for $18000, the tax basis is deduced by dividing $24000 purchasing price by $12000(original price + new shares price) which resulted into a $2/ shares. The $14,000 gain on the sale is a long-term capital gain. The gain on the sale is long term because the original Grebe stock has been held for more than one year.
A bond has a standard deviation of 10.7 percent and an average rate of return of 6.4 percent. What is the coefficient of variation (CoV)
Answer:
CoV = 1.671875 rounded off to 1.67
Explanation:
The coefficient of variation (CoV) is a measure of volatility of an investment. It tells the volatility in comparison with the expected return from the investment. We can say that the CoV tells us the risk per unit of return as CoV is calculated by dividing standard deviation, which is a measure of risk, by the expected return of the investment.
CoV = SD / r
Where,
SD is the standard deviationr is the expected returnCoV = 0.107 / 0.064
CoV = 1.671875 rounded off to 1.67
Pandora pioneered a new way to broadcast music. This kind of breakthrough of creating ________ ways to solve old problems or meeting customer needs in a ___________ new way is referred to as a pioneering new entry.
Answer:new; unique
Explanation:
Pioneering new entry is when a firm brings a new product into the market which in turn, changes the way in which businesses will be conducted.
In situations whereby the product is unique, then the pioneering firm may end up having little direct competition. Pioneering new entry is somehow risky as the product or service may not be accepted.
A company has among its long-term debt, a bond due in 2015 that carries a face interest rate of 4.65 percent and pays interest annually. Recently this bond sold on the New York Bond Exchange at 103.39. Assume that the company uses the effective interest method to amortize its bonds. Answer the following true/false questions and then select the appropriate multiple choice response. _____ The current market rate of interest on this bond is less than 4.65 percent. _____ The current market rate of the bond affects the amount that the company pays in annual interest. _____ The current market rate of interest affects the amount of interest expense for the current year.
Answer:
A company with long-term debt
A. True/false questions:
1. __TRUE___ The current market rate of interest on this bond is less than 4.65 percent. __FALSE___ The current market rate of the bond affects the amount that the company pays in annual interest. _FALSE____ The current market rate of interest affects the amount of interest expense for the current year.
B. The appropriate multiple choice response:
2. The current market rate of interest on this bond is less than 4.65 percent.
Explanation:
Since the bond is being sold on the New York Bond Exchange at 103.39, it implies that it is selling at a premium. Therefore, the effective interest rate will be less than the face interest rate of 4.65%. This is the reason for the bond to be selling at a premium. That is, it is selling above the face value of 100 per bond. Conversely, when a bond sells at a discount, say 98 per bond, the effective interest rate will be higher than the face interest rate. The face interest rate is the stated interest rate while the effective interest rate is the market rate.
In your opinion, what are the three most important components that should be included when writing a mission statement? Why?
Answer:
1. Mission and Vision
2. Core Values
3. Goals and Objectives.
Explanation:
A mission statement is a formal, short, precise and concise summary of the what the company or business entails. This states the purpose of the firm or business, its core values and philosophy, as well as goal and objectives to their target customers, employees and the community at large.
Three most important components of mission statement are
1. Mission and Vision: brief description what the firm or business set to achieve.
2. Core Values: this is a brief description of cultural practices and guiding principles of employees acts and behaviours
3. Goals and Objectives: this is another short description of the set out goals and objectives of a firm or business, often for rest of the year.
A mission statement is an action-based statement that states the role and purpose of the existence of the organization. It also tells us how they serve their clients and customers.
A companies mission statement is the most important aspect of the company. The company sets its mission statement on the basis of its aims and objectives. Its roles in the market and policies its executes.Hence in my opinion the statement describes the main focus area of the company
Learn more about the what are the three most important components.
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Due to a recession in the United States and abroad, ski resorts have suffered from a lack of guests during the peak season. These ski resorts have felt a direct impact from ____ force.
A) competitive
B) technological
C) sociocultural
D) economic
E) legal and regulatory
Answer:
D) economic.
Explanation:
These are seen to be factors which play vital roles in bringing/affects the competitiveness of the environment of operation of a said firm.
These forces in a business are said to primarily affect the distribution of production activities across the globe and also within a smaller region. These effects of economic forces are easily been felt by the mass/population around the region where these forces are present and also where these enterprises are been sited/located.
Factors ranging from interest rate, employment, inflation rate, government fiscal and monetary policy are generally known to make up these factors been talked about.
On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $46,000,000 of 20-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $42,309,236. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 20Y1 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 20Y1 Dec. 31 b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar. 20Y2 June 30 3. Determine the total interest expense for 20Y1. $ 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest
Answer and Explanation:
1 . The journal entries are shown below;
Cash Dr $42,309,236
Discount on bond payable $3,690,764
To Bond payable $46,000,000
(Being the issuance of the bond is recorded)
2. a.
Interest expense Dr $2,392,269
To Discount on bond payable ($3,690,764 ÷ 20 years × 2) $92,269.10
To Cash $23,000,000 ($46,000,000 ÷ 2 years)
(Being the interest expense is recorded)
b.
Interest expense Dr $2,392,269
To Discount on bond payable ($3,690,764 ÷ 20 years × 2) $92,269.10
To Cash $23,000,000 ($46,000,000 ÷ 2 years)
(Being the interest expense is recorded)
3. Total interest expense is $2,392,269
4. Yes, bond payments will always be lower than the face value of bonds, if the contract rate is lower than the interest rate on the market.
Contracts that are personal in nature are NOT assignable:______
a. under any circumstances.
b. without justifiable reason.
c. without consent.
d. all of the above.
Answer:
C.
Explanation:
Contract in the context of business is defined as a legally binding agreement . This means that the parties involved in a contract agreement have legally agreed to be committed to the terms and conditions of the business.
However , contracts that are personal in nature can only be assigned to other parties , where the assignee guaranties the assignor the right to the contract with the consent of the parties initially involved in the contract ,and a specific provision in the contract permits it , provided performance will not be materially changed.
Without consent , it is not assignable.
sun-Jun is a representative for a Chinese company that is based in Confucian culture. When Sun-Jun mentions to his staff that guanxi should be taken into consideration, what is he referring to
Answer: relationships or connections the business has
Explanation:
From the question, we are informed that Sun-Jun is a representative for a Chinese company that is based in Confucian culture and that when Sun-Jun mentions to his staff that guanxi should be taken into consideration.
Guanxi means connection which brings about the facilitation of deals. In business, relationships are essential.
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?
Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
Consider the production department of a manufacturer of laptop computers. Classify the cost of the factory maintenance manager's salary.
a. variable.
b. direct.
c. period.
d. fixed.
Answer:
d. fixed.
Explanation:
The Maintenance Managers`s work can not be directly traced during the production process and this does not meet the definition of a direct cost.
However the Maintainace Managers`s work is key in every production thus, it is an indirect manufacturing cost that in most cases is fixed.
Fixed in the sense that the salary (cost) does not vary with the level of production.
Using ABC in a service company
Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates:
The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants.
Requirements
What is the total cost of the Kerry job?
If Kerry paid $3,540 for the job, what is the operating income or loss?
If Blanchette desires an operating income of 30% of cost, how much should the company charge for the Kerry job?
Answer:
Blanchette Plant Service
ABC Costing Technique:
1. Total cost of the Kerry job:
Plants = $750
Direct labor = 1,300
Total cost = $2,050
2. Determination of operating income or loss (Kerry's job):
Service Revenue = $3,540
less cost of service 2,050
Operating income = $1,490
3. With desired operating income of 30% of cost:
Operating income = $615 ($2,050 x 30%)
The company can charge the Kerry job $2,665 ($2,050 + 615) or ($2,050 x 1.3)
Explanation:
Operating income or loss is the difference between revenue and costs of providing the services or goods. When the revenue exceeds the operating cost, the difference is an operating income. When the revenue is exceeded by the operating cost, the difference is an operating loss. While the former means that the organization has added value to its resources, the latter implies that the organization has lost some value to its resources, thereby reducing the equity of the owners in the business entity.
Regina recently landed her dream job at a local clothes outlet. Within a few weeks of working in her new employment, however, Regina began to engage in fraud. Regina committed the fraud by doing the following:
When people returned merchandise, Regina would ring up an amount that was greater than the value of the item that was being returned. Regina would then pocket the extra cash and give the customer the amount due. Regina found this method of fraud very effective because people were, in reality, returning something and inventory and register totals wouldn't be out of balance at the end of the day.
Required:
1. What type of fraud is Regina committing?
2. How could her employer detect this kind of fraud?
Answer:
Fraudulent disbursements,
card statement review
Explanation:
Fraudulent disbursements are very common and occur when an employee misappropriates company funds by making inappropriate payments, fraudulent. They are also called on-book frauds and can only be traced by putting systems that keep these practices in check. The most likely way to have caught the employee in the above case was to review the card statement and review purchases made and to what amount the refund from the company's card was made
Kite Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (3,000 units) $ 180,000 Variable expenses 108,000 Contribution margin 72,000 Fixed expenses 62,400 Net operating income $ 9,600 The contribution margin ratio is closest to:
Answer:
40%
Explanation:
Contribution margin = Contribution ÷ Sales × 100
= 72,000 ÷ $180,000 × 100
= 0.4 × 100
= 40%
Please not that other information given in the question are not relevant in arriving at the contribution margin ratio hence will be ignored.
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%:
Asset A: Expected return = 10% & SD = 20%
Asset B: Expected return = 15% & SD = 27%
An investor with a risk aversion of A = 3 would find that _________________ on a risk return basis.
a. only Asset A is acceptable
b. only Asset B is acceptable
c. neither Asset A nor Asset B is acceptable
d. both Asset A and Asset B are acceptable
Answer:
c. neither Asset A nor Asset B is acceptable
Explanation:
The computation of the risk return basis is shown below:-
Optimal Return of Asset A is
= A × 0.5 × Standard Deviation^2 + Risk Free Rate
= 3 × 0.5 × 20%^2 + 5%
= 11%
As 10% is lesser than 11%
Now
Optimal Return of Asset B is
= A × 0.5 × Standard Deviation^2 + Risk Free Rate
= 3 × 0.5 × 27%^2 + 5%
= 15.94%
As 15% is lesser than 15.94%
Therefore neither Asset could be acceptable
Kim's brokerage company offers dual agency. Tom and Don are two of her licensed agents. Tom ha been appointed to represent the seller, and Don has been appointed to represent the buyer in an in-house transaction. In this situation, who is a dual agent ? A. Kim only B. Kim, Tom, and Don only C. all licensed agents Kim's broker age D. no one.
Answer:
A. IS THE ANSWER
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Betty Harrington owns a floor covering firm. Her market research is telling her that she is taking business away from the large home improvement stores in her trade area. One thing that Betty is worried about is that the large stores might fight back by lowering their prices, which hurts everyone except the consumer. The day-to-day challenge of firm growth that this example is referring to is:
Answer:
price stability
Explanation:
In this scenario, the day-to-day challenge of firm growth that this example is referring to is price stability. Since the prices of the competing store are being changed (on purpose) Betty Harrington's firm will have a hard time adjusting in order to continue competing with the larger competing store, especially if the larger store lowers the price too much that Betty's store cannot actually lower theirs to that price. Thus ultimately forcing her out of the market.
Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods sold $180,000 Sales returns $50,000 Sales discount $20,000 What is the gross profit?
Answer:
$100,000
Explanation:
The computation of gross profit is shown below:-
Gross profit = (Sales revenue - Sales return - Sales discount) - Cost of goods sold
= ($350,000 - $50,000 - $20,000) - $180,000
= $280,000 - $180,000
= $100,000
Therefore we simply applied the above formula for determining the gross profit
he Heinz and Kraft merger Group of answer choices may be allowed by the FAA may be allowed by the NEA may be allowed by the NRA may be allowed by the FTC
Answer:
Heinz and Kraft Merger:
may be allowed by the FTC.
Explanation:
The FTC is the Federal Trade Commission. It is the federal government agency charged with the responsibility of ensuring fair market practices, creating, and enforcing rules to guide businesses with respect to advertising, marketing, consumer credit, antitrust, and other fair practises.
The FTC was created by the FTC Act of 1914 and prevents antitrust agreements and develops rules for achieving a vibrant and fair marketplace, where consumers and businesses understand their rights and obligations in the marketplace.
The Heinz and Kraft merger was concluded successfully in 2015 enabling the two companies to become known as the Kraft Heinz Company and one of the largest food and beverage companies in the world.
how to solve this problem:If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a 30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford?
Answer:
30-year loan at 5-1/2% ⇒ MAXIMUM LOAN $176,100
using a loan amortization table, you will pay $5.6786 for every $1,000 that you borrow, so you can borrow up to $1,000 / $5.6786 = 176.1 thousands
principal = $176,100
first payment:
interests = $176,100 x 0.055 x 1/12 = $807.13
repaid principal = $192.87
20-year loan at 4-1/2% ⇒ MAXIMUM LOAN $158,000
using a loan amortization table, you will pay $6.3291 for every $1,000 that you borrow, so you can borrow up to $1,000 / $6.3291 = 158 thousands
principal = $158,000
first payment:
interests = $158,000 x 0.045 x 1/12 = $592.50
repaid principal = $407.50
1. The maximum loan a borrower can take, if he can afford to make a monthly payment of $1,000, including principal and interest, for a 30-year loan at 5.5% interest, is $176,100.
2. The maximum loan a borrower can take, if he can afford to make a monthly payment of $1,000, including principal and interest, for a 20-year loan at 4.5% interest, is $158,100.
Data and Calculations:
a) N (# of periods) 360 months (30 x 12)
I/Y (Interest per year) = 5.5%
PMT (Periodic Payment) = $1,000
FV (Future Value) = $0
Results:
PV = $176,121.76
Sum of all periodic payments = $360,000 ($1,000 x 360)
Total Interest = $183,878.24
b) N (# of periods) = 240 months (20 x 12)
I/Y (Interest per year) = 4.5%
PMT (Periodic Payment) = $1,000
FV (Future Value) = $0
Results:
PV = $158,065.44
Sum of all periodic payments = $240,000 ($1,000 x 240)
Total Interest = $81,934.56
Thus, to solve this problem, input $1,000 as the periodic payment on a financial calculator and then calculate the present value of $1,000 at the interest rate for the given period.
Learn more about the present value of a periodic payment here: https://brainly.com/question/24770361
You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for the next 3 years, and 4.3 percent for the final 7 years. How much do you have to deposit today
Answer:
PV= 19,042.84
Explanation:
Giving the following information:
You need to have $32,000 in 14 years. You can earn an annual interest rate of 3 percent for the first 4 years, 3.6 percent for the next 3 years, and 4.3 percent for the final 7 years.
To calculate the initial deposit, we need to use the following formula for each interest rate:
PV= FV/(1+i)^n
Last 7 years:
PV= 32,000/(1.043^7)
PV= $23,831.96
Year 4 - 7:
PV= 23,831.96/1.036^(3)
PV= 21,432.88
Finally, for year 0 to 4:
PV= 21,432.88/ 1.03^(4)
PV= 19,042.84
Clara is suing David because of a property dispute. Clara and David are from different states, so it is not readily clear which state has jurisdiction over this case. Which of the following is true?
Answer: got it wrong so don't pick this one
Explanation:
Clara is suing David because of a property dispute. Clara and David are from different states, so it is not readily clear which state has jurisdiction over this case. Which of the following is true?
Jurisdiction can fall in whichever state has subject matter or personal jurisdiction, likely depending on which state Clara feels will give her a more favorable outcome for her case.
Jurisdiction depends solely on where the property - the focus of the dispute - is located. Wrong answer
Jurisdiction falls in Clara's state of residence, since she is the plaintiff.
Jurisdiction falls in David's state of residence, since he is the one being summoned to court.
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Several courts could potentially have jurisdiction. It is most likely that Clara will forum shop for the jurisdiction that would most likely operate in her favor.
Dominica Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions.
Jan. 15 Issued 400,000 shares of stock at $7 per share.
Sept. 5 Purchased 30,000 shares of common stock for the treasury at $9 per share.
Dec. 6 Declared a $0.50 per share dividend to stockholders of record on December
20, payable January 3, 2015.
Journalize the transactions for Patrick Corporation.
Answer:
Jan. 15
DR Cash (400,000 * 7) $2,800,000
CR Common Stock (400,000 *1) $400,000
CR Paid - In Capital in excess of Par (2,800,000 - 400,000) $2,400,000
(To record issuance of common stock above par)
Sept. 5
DR Treasury Stock (30,000 * 9) $270,000
CR Cash $270,000
(To record repurchase of Common Stock)
Dec. 6
DR Dividends (0.5 * $1 * 370,000 shares) $185,000
CR Dividends Payable $185,000
(To record dividends issued)