The required return for the preferred stock of Voltanis Corporation is 4.06%.
To calculate the required return, we need to use the formula for the present value of perpetuity:
PV = Annual Dividend / Required Return
Rearranging the formula to solve for the required return:
Required Return = Annual Dividend / PV
Substituting the given values:
Annual Dividend = $4.05
PV = $99.67
Required Return = $4.05 / $99.67 = 0.0406 or 4.06%
Therefore, the required return for the preferred stock of Voltanis Corporation is 4.06%.
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Upon the death of the majority stockholder in a corporation, direct control may pass to:
a. an heir's dependents.
b. an executor.
c. the founder of the firm.
d. employees as directed by an employee stock ownership plan.
Upon the death of the majority stockholder in a corporation, direct control may pass to an heir's dependent. This right is exercised through an executor responsible for settling the stocks of the deceased stockholder, The correct option is (A).
Upon death, direct control may pass to the majority stockholder's heirs or beneficiaries as designated in their estate plan. The deceased shareholder's rights will be administered by his or her executors (if there is a will) or administrators of the estate if the shareholder has died intestate. (Executors and administrators are collectively known as 'personal representatives'). These executors may temporarily have control over the shares until they are distributed to the appropriate heirs or beneficiaries. If there is no designated beneficiary or executor, the shares may be distributed according to the laws of the state where the corporation is incorporated. Therefore, the correct option is (A).
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Handee Hardware, Inc., grants a franchise to Ivan to open and operate a Handee Hardware store. Handee will likely charge Ivan
A) a license fee and a price for supplies.
B) a license fee only.
C) a price for supplies only.
D) neither a license fee nor a price for supplies.
Handee Hardware, Inc. will likely charge Ivan a- B. license fee for the right to use their brand name, operating system, and support services.
What other reasons?This fee is typically a one-time payment or an ongoing fee paid on a regular basis.
Additionally, Handee may also charge Ivan for supplies such as inventory, marketing materials, and equipment needed to run the store.
These costs are usually outlined in the franchise agreement and may be paid upfront or on a regular basis.
It is unlikely that Handee will charge neither a license fee nor a price for supplies, as they are providing valuable resources and support for the franchisee to operate a successful business.
Hence, option b. is correct.
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a stock has an expected return of 6%. what is its beta? assume the risk-free rate is 8% and the expected rate of return on the market is 18%. (negative value should be indicated by a minus sign. round your answer to 2 decimal places.)
The beta of the stock is -0.2.
To calculate the beta of the stock, we can use the following formula:
Beta = (Expected Return - Risk-Free Rate) / Market Return - Risk-Free Rate)
Plugging in the given values, we get:
Beta = (0.06 - 0.08) / (0.18 - 0.08) = -0.02 / 0.1 = -0.2
Therefore, the beta of the stock is -0.2.
It's worth noting that this result may seem counterintuitive since beta is typically a measure of how closely a stock's returns are correlated with market returns.
A negative beta would suggest that the stock's returns move in the opposite direction of the market.
However, in some cases, a negative beta can indicate that the stock's returns are not correlated with the market at all, or that they are driven by factors other than market performance.
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when a broker-dealer maintains an inventory in a particular stock and trades that stock in the otc market, it is acting as
When a broker-dealer maintains an inventory in a particular stock and trades that stock in the OTC market, it is acting as a market maker.
A market maker is a financial institution that maintains a standing bid and ask price in a particular security, providing liquidity in the market.
By buying and selling the stock on a regular basis, market makers ensure that there is always a supply of the stock available for buyers and sellers, thus providing a more efficient market for the investors.As a market maker, the broker-dealer takes on the risk of holding inventory in the stock, as the value of the stock may fluctuate. The market maker also earns a spread between the bid and ask price, which serves as compensation for providing liquidity to the market. However, there are regulations in place to prevent market makers from manipulating the market, such as the requirement to quote prices that are reasonably related to the prevailing market price.In summary, a broker-dealer that maintains an inventory in a particular stock and trades that stock in the OTC market is acting as a market maker, providing liquidity to the market and earning a spread between the bid and ask price.Know more about the market maker
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he asset demand for money is most closely related to money functioning as a multiple choice measure of value. store of value. unit of account. medium of exchange.
The asset demand for money is most closely related to money functioning as a store of value. This means that people hold money as a way to store their wealth and savings.
The relationship between money's functions and asset demand. Money serves four primary functions: it is a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
The asset demand for money refers to the demand for money as an asset, rather than simply a means of exchange. When money is functioning as a store of value, people demand money as an asset because they believe it will retain its value over time. This is especially true during times of economic uncertainty or inflation when other assets, such as stocks or bonds, may be more volatile or risky.
In contrast, when money is functioning as a medium of exchange, people demand it primarily to facilitate transactions. This demand is more closely related to money's function as a measure of value, which enables people to compare the relative worth of different goods and services.
Overall, the asset demand for money is most closely related to money functioning as a store of value, but this demand is shaped by the other functions of money and the broader economic context.
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he balance of payments is: a currency whose value is not pegged, but governments will intervene extensively in the market to keep the value within a certain range. a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world. the sum of the balance of trade, net income on capital held abroad, and net transfer payments. the price of one currency in another currency.
The balance of payments is a yearly summary of all the economic transactions between residents of one country and residents of the rest of the world.
It consists of three components - the balance of trade (exports and imports of goods and services), net income on capital held abroad, and net transfer payments (such as remittances and foreign aid).
The balance of payments provides an overview of a country's international economic transactions and helps to understand its financial position in the global economy.
Summary: In short, the balance of payments is an annual summary of a country's economic transactions with the rest of the world, including trade, income, and transfers.
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capabilities develop into core competencies that can serve as the source of competitive advantage when:
Capabilities can develop into core competencies that can serve as a source of competitive advantage when they are rare, valuable, difficult to imitate, and not easily substitutable.
Rarity refers to the uniqueness of the capability within the industry or market. A capability that is possessed by only a few firms is more likely to be a source of competitive advantage.
Value refers to the ability of the capability to create value for customers and/or reduce costs for the firm. A capability that improves the customer experience or lowers production costs can contribute to competitive advantage.
Imitability refers to the difficulty that competitors face in replicating the capability. A capability that is difficult to copy can provide a sustained competitive advantage.
Substitutability refers to the ease with which a competitor can replace the capability with an alternative. A capability that has no viable substitutes can serve as a strong source of competitive advantage.
Therefore, when a firm's capabilities possess these characteristics and develop into core competencies, they can be leveraged to create a sustainable competitive advantage, which can lead to higher profits and market share.
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T or F: Preferred stock has more voting power and, as such, greater control over the management of the company.
False. Preferred stock generally does not have more voting power or greater control over the management of the company compared to common stock. In fact, preferred stock typically does not carry any voting rights.
Shareholders who own preferred stock receive priority when it comes to dividend payments and claim on the company's assets in case of bankruptcy, but they typically do not have the power to influence the company's management decisions.
Common stock, on the other hand, usually provides shareholders with voting rights, allowing them to participate in key decisions, such as electing members of the board of directors or voting on significant corporate matters. Therefore, it is the common shareholders who generally have more control over the management of the company.It is essential to note that the specific characteristics of preferred and common stock may vary depending on the company's articles of incorporation and the stock issuance terms. In some cases, companies may issue a special class of preferred stock with voting rights, but this is less common and not the general rule. Overall, preferred stock is primarily focused on providing financial benefits, while common stock offers a combination of financial gains and voting power to influence the company's management.Know more about the Preferred stock
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T or F: Preferred stock is less risky because preferred stockholders are paid dividends before common stockholders.
True. Preferred stock is considered to be less risky than common stock because it guarantees a fixed dividend payment to its shareholders before any dividends are paid out to common stockholders.
This means that in the event of a company's financial distress, preferred stockholders will receive their dividend payments before common stockholders do. Preferred stockholders also have priority over common stockholders in the event of liquidation, meaning that they will be paid out their share of the company's assets before common stockholders are.
Additionally, preferred stock typically does not have voting rights, which means that preferred stockholders have less influence over the company's decision-making than common stockholders do. However, this lack of voting rights is often seen as a trade-off for the security of receiving fixed dividend payments. It is important to note that while preferred stock may be less risky than common stock, it is still considered a riskier investment than other fixed-income securities, such as bonds. This is because the dividend payments on preferred stock are not guaranteed and can be suspended by the company at any time. Therefore, it is important for investors to carefully consider their investment goals and risk tolerance before investing in preferred stock.Know more about the Preferred stock
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your customer, eleanor, purchased an indebt, inc., 5% debenture at a price of 94. it matures in 12 years. what is the yield to maturity
The yield to maturity for Eleanor's Indebt, Inc. 5% debenture, purchased at a price of 94 and maturing in 12 years, is approximately 5.46%.
To calculate the yield to maturity (YTM), we need to consider the bond's purchase price, par value, coupon rate, and time to maturity.
In this case, the purchase price is 94, the par value is assumed to be 100, the coupon rate is 5%, and the bond matures in 12 years.
You can use a financial calculator or a spreadsheet to compute the YTM, taking these factors into account. In this instance, the YTM is approximately 5.46%.
Summary: The yield to maturity for Eleanor's 5% debenture from Indebt, Inc., purchased at a price of 94 and with a 12-year maturity, is approximately 5.46%.
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the amount shown in the balance sheet debit column of worksheet for merchandise inventory is:
Answer:
The balance sheet debit column of a worksheet for merchandise inventory typically shows the value of the inventory at a particular point in time.
Explanation:
This value represents the cost of the merchandise that a company has purchased but has not yet sold.
It's important to note that a balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific date.
The merchandise inventory balance shown in the debit column reflects the historical cost of inventory and is typically classified as a current asset on the balance sheet.
However, without specific information about a company's worksheet or financial records, I cannot provide you with an exact amount.
The value of merchandise inventory can vary greatly depending on the nature of the business and its accounting practices.
It's best to refer to the company's financial statements or consult with an accountant for accurate and up-to-date information.
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A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called a(n)
a) Income tax.
b) Property tax.
c) Excise tax.
d) None of the choices are correct.
A tax that is placed on the quantity of the item being purchased, such as gallons of it, is called an c) excise tax.
An excise tax is a tax on a specific good or service, typically included in the price of the product or service.This tax is typically imposed on specific goods and services, such as gasoline, tobacco, and alcohol, and is calculated based on the quantity purchased rather than the value or price of the item.
Excise taxes are often used by governments to discourage the consumption of certain products or to generate revenue for specific programs or initiatives. This type of tax is different from an income tax or property tax, which are based on income or property ownership, respectively.
Therefore, option C is the correct answer.
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Shares of Hot Donuts common stock are currently selling for $32.35. The last annual dividend paid was $1.25 per share and the market rate of return is 10.7 percent. At what rate is the dividend growing?
To calculate the dividend growth rate for Hot Donuts common stock, we'll use the Gordon Growth Model (Dividend Discount Model). Here's a step-by-step explanation:
1. Identify the required information from the question:
- Current stock price (P0) = $32.35
- Last annual dividend paid (D0) = $1.25
- Market rate of return (required rate of return, r) = 10.7%
2. Apply the Gordon Growth Model formula: P0 = D1 / (r - g)
- We need to find the expected dividend growth rate (g)
3. We'll first find the expected next annual dividend (D1) by multiplying the last annual dividend (D0) by (1 + g). So, D1 = D0 * (1 + g)
4. Now, substitute the known values in the formula: $32.35 = D1 / (0.107 - g)
5. Substitute D1 with the expression from step 3: $32.35 = (1.25 * (1 + g)) / (0.107 - g)
6. Solve the equation for g. You can use an algebraic method or numerical methods such as iteration or a financial calculator to solve it.
Upon solving, you'll find the dividend growth rate (g) for Hot Donuts common stock.
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in most markets, scarce goods or services are rationed among competing users using:
In most markets, scarce goods or services are rationed among competing users using prices. The price of a good or service serves as a signal to both buyers and sellers about the relative scarcity of that item.
When demand for a good or service exceeds its supply, its price tends to rise, which encourages suppliers to produce more and buyers to consume less, thereby bringing the market back towards equilibrium. On the other hand, when supply exceeds demand, the price tends to fall, which encourages buyers to consume more and suppliers to produce less, also bringing the market towards equilibrium. This rationing function of prices is a key feature of market economies and helps allocate scarce resources to their most efficient uses. In some cases, governments may intervene in markets to try to ration scarce goods or services using methods other than prices, such as through a lottery system or through administrative allocation, but these methods are generally less efficient and effective than price rationing.
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colgate invests in new products. colgate total advanced gum defense toothpaste is an example of
Colgate Total Advanced Gum Defense Toothpaste is an example of product innovation by Colgate.
Colgate Total Advanced Gum Defense Toothpaste is a new product by Colgate that focuses on improving gum health. It contains an advanced formula that helps to prevent and reduce gum problems such as bleeding, inflammation, and sensitivity. This toothpaste is an example of product innovation by Colgate, which is the process of developing and introducing new products to the market. By investing in product innovation, Colgate is able to stay ahead of its competitors, meet the changing needs of its customers, and grow its market share. In addition, product innovation allows Colgate to increase its revenue and profitability by introducing new and improved products that are in high demand. Overall, Colgate Total Advanced Gum Defense Toothpaste is a great example of how product innovation can benefit both companies and consumers alike.
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will pay a dividend of $7 for each of the next 3 years, $8 for each of the years 4-6, $9 for each of the years 7-9, and a dividend of $10 for year 10. thereafter, the company will pay no dividends. if you require 13 percent rate of return on investments in this risk class, how much is this stock worth to you?
The present value of the stock's dividends is $59.69. This is the stock's worth to you.
To find the worth of this stock, you need to calculate the present value of all its dividends. We can do this by discounting each dividend back to the present time using the required rate of return (13%).
For years 1-3: PV1 = $7/(1.13)^1, PV2 = $7/(1.13)^2, PV3 = $7/(1.13)^3
For years 4-6: PV4 = $8/(1.13)^4, PV5 = $8/(1.13)^5, PV6 = $8/(1.13)^6
For years 7-9: PV7 = $9/(1.13)^7, PV8 = $9/(1.13)^8, PV9 = $9/(1.13)^9
For year 10: PV10 = $10/(1.13)^10
Add up all the present values (PV1 to PV10) to find the total present value of the stock's dividends, which is $59.69. This is the stock's worth to you given the required rate of return.
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the point at which individual computers and business networks connect to the isp is called the
The point at which individual computers and business networks connect to the ISP (Internet Service Provider) is called the "point of presence" (POP)
A POP is a physical location that serves as an access point for users to connect to the internet via an ISP. It is typically a data center or a network facility that houses servers, routers, and other network equipment. From the POP, data is routed to the ISP's network backbone, which connects to other networks and ultimately to the internet. POPs are strategically located in various geographic locations to ensure fast and reliable internet connectivity for users in those areas. ISPs may have multiple POPs to provide redundancy and failover capabilities in case of network outages or congestion.
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you've estimated the following cash flows (in $) for a project: year cash flow 0 -50,000 1 115,000 2 -60,000 the required return for the project is 15%. attempt 1/20 for 1.5 pts. part 1 what is the mirr for the project?
The MIRR for the project is 18.68%.
To calculate the Modified Internal Rate of Return (MIRR) for the project, we first need to determine the future value of the positive cash flows and the present value of the negative cash flows at the required rate of return.
Future value of the positive cash flows:
Year 1: FV1 = 115,000 x (1 + 0.15) = 132,250
Year 2: FV2 = -60,000 x (1 + 0.15)^2 = -78,390
Present value of the negative cash flow:
Year 0: PV0 = -50,000
Next, we can calculate the MIRR using the formula:
MIRR = ((FV of positive cash flows / PV of negative cash flows)^(1/n)) - 1
where n is the number of years in the project (in this case, n = 2).
MIRR = ((132,250 - 78,390) / 50,000)^(1/2) - 1
MIRR = 0.1868 or 18.68%
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if 1000 dollars is invested at an annual interest rate of 12 percent compounded monthly, how many full months must go by for this investment to triple in value?
Thus, it will take approximately 89.44 months, or 7 years and 5 months, for the investment to triple in value with an annual interest rate of 12 percent compounded monthly.
To determine the number of full months required for an investment of 1000 dollars to triple in value with an annual interest rate of 12 percent compounded monthly, we need to use the formula for compound interest.
The formula for compound interest is:
A = P (1 + r/n)^(nt)
Where A is the amount of money after t years, P is the principal (initial investment), r is the annual interest rate (in decimal form), n is the number of times interest is compounded per year, and t is the time in years.
In this case, we want to find out how many full months are required for the investment to triple in value, so we can use the formula as follows:
3000 = 1000 (1 + 0.12/12)^(12t/12)
Dividing both sides by 1000, we get:
3 = (1 + 0.01)^t
Taking the natural logarithm of both sides, we get:
ln(3) = t ln(1.01)
Dividing both sides by ln(1.01), we get:
t = ln(3)/ln(1.01)
Using a calculator, we get:
t ≈ 89.44
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question in which of the following cases is the government's action appropriate for reducing inefficiency? responses taxation of the output of a chocolate factory that emits an aroma tha residents of the city enjoy taxation of the output of a chocolate factory that emits an aroma tha residents of the city enjoy regulation that reduces the output of a monopoly regulation that reduces the output of a monopoly a lump-sum tax on a monopolist a lump-sum tax on a monopolist a subsidy for the consumption of a good produced by a plant that emits a pollutant as a by-product a subsidy for the consumption of a good produced by a plant that emits a pollutant as a by-product a toll on a congested bridge
The government's action of regulation that reduces the output of a monopoly is the most appropriate option for reducing inefficiency in this case.
A monopoly has significant market power and can charge higher prices than a competitive market. This can lead to an inefficient allocation of resources and a lower level of output and consumer welfare. Regulation that reduces the output of a monopoly can help to increase competition and reduce prices, leading to a more efficient allocation of resources and a higher level of output and consumer welfare.
In contrast, the other options listed, such as taxation of the output of a chocolate factory that emits an aroma that residents of the city enjoy or a subsidy for the consumption of a good produced by a plant that emits a pollutant as a by-product, do not necessarily address the issue of inefficiency in the market. These actions may have unintended consequences and may not necessarily lead to a more efficient allocation of resources.
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political instability abroad suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more u.s assets. refer to political instability abroad. what would the change in the exchange rate make happen to u.s. net exports and u.s. aggregate demand?
An increase in the exchange rate due to political instability abroad would lead to an increase in U.S. net exports and an increase in U.S. aggregate demand.
When there is political instability abroad, people may become uncertain about the value of their assets in foreign countries. This can cause them to sell their foreign assets and buy more U.S. assets, such as U.S. stocks and bonds. This increased demand for U.S. assets will cause an increase in the demand for U.S. dollars, which will cause the exchange rate to appreciate (increase) relative to other currencies.
As the exchange rate increases, U.S. exports become more expensive to foreign buyers, which may lead to a decrease in U.S. exports. However, at the same time, U.S. imports become relatively cheaper for U.S. buyers, which may lead to an increase in U.S. imports. Overall, the increase in demand for U.S. assets is likely to lead to an increase in U.S. net exports.
An increase in U.S. net exports will cause an increase in U.S. aggregate demand, as exports are a component of aggregate demand. Additionally, the increase in demand for U.S. assets will lead to an increase in the demand for U.S. dollars, which can cause an increase in U.S. interest rates. Higher interest rates can stimulate investment and consumption spending, further increasing U.S. exchange rateexchange rate.
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Marketing manufacturing mastery test
Explanation: A marketing manufacturing mastery test could be a test marking what is being sold in a supermarket and can see what things would buy out more and manufacture the amount of things that are sold in a certain time. There is no picture on this question so this is my educated guess on what the answer is / could be.
yoshi is a second-grade teacher. he taught full-time, 1,050 hours, in a school for the tax year. during 2022, he spent $700 on teaching supplies used in his classroom. he did not receive any reimbursements. how much of these expenses may he deduct as an adjustment to income? $250 $300 $500 $700
Yoshi may deduct $250 of his teaching supply expenses as an adjustment to income
Yoshi is a second-grade teacher who spent $700 on teaching supplies without receiving any reimbursements. To determine the amount he may deduct as an adjustment to income, let's consider the Educator Expense Deduction.
The Educator Expense Deduction allows eligible educators to deduct up to $250 of unreimbursed expenses for teaching supplies. Since Yoshi spent $700 on supplies, he can only deduct the maximum amount allowed by the deduction, which is $250.
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kennett corp. has the following information: jan 1, 2022 face value of bonds issued: $800,000 carrying value of bonds $797,000 the bonds are redeemed before maturity at 102. what is the amount kennett would pay its bondholders to redeem the bonds? a. $797,000 b. $800,000 c. $804,000 d. $816,000
The correct answer is (d) $816,000. In this case, the carrying value of the bonds is $797,000, which means that there is a discount of $3,000 ($800,000 - $797,000) associated with the bonds.
When the bonds are redeemed before maturity at 102, it means that the bondholders will receive a payment equal to 102% of the face value of the bonds. Therefore, the amount Kennett would pay its bondholders to redeem the bonds would be:
$800,000 x 102% = $816,000
This amount represents the total payment to the bondholders, which includes the face value of the bonds plus the premium of $16,000 ($800,000 x 2%). Therefore, the correct answer is (d) $816,000.
It is important to note that the discount or premium associated with a bond is amortized over the life of the bond, which means that it is gradually recognized as an expense or revenue in the company's financial statements. However, since the bonds are being redeemed before maturity, the remaining unamortized discount is not relevant to the calculation of the redemption price.
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the main purpose of the antitrust laws is question 64 options: to regulate natural monopolies. to prevent the monopolization of industries. to encourage firms to produce where p > mc. to eliminate both negative and positive externalities.
The main purpose of the antitrust laws is to prevent the monopolization of industries. Option B is answer.
Antitrust laws are designed to promote fair competition and prevent the concentration of market power in the hands of a single company or a few dominant players. Their primary objective is to ensure that markets remain competitive, allowing for a level playing field among businesses and preventing monopolistic practices.
By prohibiting anti-competitive behaviors such as price fixing, collusion, and abuse of market dominance, antitrust laws aim to protect consumer welfare, encourage innovation, and promote economic efficiency. The goal is to foster a competitive marketplace where multiple firms can thrive and provide consumers with choices and benefits.
Option B is answer.
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On January 1, Avers Co. borrowed $10,000 cash from Main St. Bank by signing a 60-day, 8% interest-bearing note. On March 1, Avers pays the amount due in full. This entry would be recorded by Avers with a debit to _________________ in the amount of _______
On March 1, when Avers pays the amount due in full, they would record this entry with a debit to Notes Payable in the amount of $10,000.
Since Avers Co. borrowed $10,000 cash from Main St. Bank, they have to pay back the principal amount along with the accrued interest. The principal amount borrowed is represented by the Notes Payable account, which needs to be debited when repaying the loan.
Summary: When Avers Co. pays back the loan on March 1, they would debit the Notes Payable account for the principal amount of $10,000.
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Phil Frugal has been saving his pennies since he was 5 years old. He is now 45 and deposits his savings in a bank. His pennies total $5000. Using this information and your knowledge of the banking system, place both the definition and dollar amounts below in their appropriate category. Assume a required reserve ratio of 10%.
Determine required/excess/reserves
Phil Frugal's savings of $5000 in a bank would result in required reserves of $500, excess reserves of $4500, and total reserves of $5000.
Banks are required by law to hold a certain percentage of their deposits as reserves, which are funds that cannot be loaned out to customers or invested in other assets. This reserve requirement is set by the Federal Reserve, and the current required reserve ratio for banks is 10%.
With this in mind, we can calculate the required reserves for Phil Frugal's savings. If he deposits all $5000 of his pennies into a bank, the bank must hold 10% of that amount in reserves. So, the required reserves for Phil Frugal's savings would be:
Required reserves = $5000 x 0.10 = $500
This means that the bank must hold $500 of Phil Frugal's savings in reserves, and cannot use that money for loans or other investments.
Now, we can calculate the excess reserves for Phil Frugal's savings. Excess reserves are any reserves that a bank holds above and beyond the required amount. Banks can choose to hold more reserves than required for various reasons, such as to protect against unexpected withdrawals or to have more funds available for lending.
To calculate the excess reserves for Phil Frugal's savings, we need to subtract the required reserves from the total deposits:
Excess reserves = $5000 - $500 = $4500
This means that the bank has $4500 of Phil Frugal's savings available for lending or other investments.
Finally, we can calculate the total reserves for Phil Frugal's savings, which is simply the sum of the required and excess reserves:
Total reserves = $500 + $4500 = $5000
This means that the bank is holding $5000 of Phil Frugal's savings in reserves and has the option to use $4500 of those funds for loans or other investments.
In summary, Phil Frugal's savings of $5000 in a bank would result in required reserves of $500, excess reserves of $4500, and total reserves of $5000.
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During 2021, it cost Waterway, Inc. $14 per unit to produce part 15. During 2022, it has increased to $19 per unit. In 2022, Oriole Company has offered to provide Part T5 for $11 per unit to Waterway. As it pertains to the make-or-buy decision, which statement is true? a Incremental revenues are $5 per unit. b Incremental costs are $3 per unit. c Net relevant costs are $3 per unit. d Differential costs are $8 per unit.
Differential costs are $8 per unit. The correct answer is d.
Make-or-buy decisions involve determining whether to produce a product in-house or to purchase it from an external supplier. In this scenario, Waterway, Inc. is currently producing Part 15 at a cost of $14 per unit. In 2022, Oriole Company has offered to provide Part T5 for $11 per unit.
To determine whether Waterway should make or buy Part T5, the relevant costs should be compared. The relevant cost of making Part T5 is the incremental cost of producing it, which is the difference between the new cost of producing Part 15 ($19 per unit) and the old cost ($14 per unit). Therefore, the incremental cost of producing Part T5 is $5 per unit.
The relevant cost of buying Part T5 is the cost of purchasing it from Oriole Company ($11 per unit). The differential cost between the two options is the difference between the cost of making and the cost of buying, which is $8 per unit ($11 - $3). Therefore, the correct answer is d. Differential costs are $8 per unit.
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the new international division of labor (nidl) is characterized by the following:
The new international division of labor (NIDL) is characterized by a global economic system in which labor is divided among different countries based on their comparative advantages.
The NIDL has transformed the global economy by creating new opportunities for both developed and developing countries.
Developed countries have been able to outsource low-value and labor-intensive activities to developing countries, which has allowed them to focus on more high-value and high-skilled activities, leading to economic growth and increased competitiveness. Developing countries, on the other hand, have been able to attract foreign direct investment and gain access to technology, which has enabled them to improve their economic performance and create jobs.Know more about the international division of labor
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What effect does a stock split have on retained earnings, common stock, APIC, and total stockholder's equity?
A stock split does not impact the total stockholder's equity or retained earnings, but it does affect common stock and additional paid-in capital (APIC) accounts.
When a company undergoes a stock split, the number of outstanding shares increases, but the overall market value of the company remains unchanged.
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