Answer:
Correct Answer:
C. Neither, both calculations give the same answer.
Explanation:
In any given business calculation that is expected to arrive at a particular solution, the solution obtained would always be the same irrespective of the method adopted. For the example, the case of expected return of a portfolio in a business, the calculation would definitely give the same answer when two methods are adopted.
Pat promises to install granite countertops in the home at 123 Main Street that Bruce is purchasing "provided that the escrow on the sale of 123 Main Street closes." The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise.a) trueb) false
Answer: True
Explanation:
From the question, we are informed that Pat promises to install granite countertops in the home at 123 Main Street that Bruce is buying provided that the escrow on the sale of 123 Main Street closes.
The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise is true. This is because Pat will only fulfil her promise given that there is a close of escrow on the sale of 123 Main Street.
All of the following statements regarding Government National Mortgage Association (GNMA) pass-through securities are true EXCEPT A) investors own an undivided interest in a pool of mortgages B) GNMAs are considered to be the riskiest of the agency issues C) the minimum initial investment is $25,000 D) investors receive a monthly check representing both interest and a return of principal
Answer:
B) GNMAs are considered to be the riskiest of the agency issues
Explanation:
The Ginnie Mae or GNMA pass through securities are mortgage backed. The Great recession taught us that mortgage backed securities are not always 100% secure, but they are still considered secure investments basically because they are guaranteed by the US government. They are similar to the securities sold by the US Treasury.
Ginnie Mae basically guarantees mortgages using federal funds (from Federal Housing Administration and Department of Veterans Affairs).
"Two unrelated persons (Person A and Person B) come into your branch office to open a new account. They tell you that the funds are being deposited by Person A, who will be the owner of the account, and that Person B wants to be able to trade the account. They also tell you that only 1 social security number is to be used on the account. How should the account be opened?"
Answer: Individual account in the name of Person A with a Third Party Trading Authorization granted to Person B
Explanation:
An account that has two or more signatory is known as a joint account. When this account is opened, both parties or all signatory to the account will have to either be physically present or would provide details about about themselves to be used for opening of the account. The account is then opened and all signatory to the account can access and be informed about every detail about the account as there is no preference of one person over the other.
which of these will a filing clerk find most useful in carrying out his Duty
a. computer
b. perforator
Answer:
computer
Explanation:
I Think This will help you
On April 1, Aloe, Inc. factored $80,000 of its accounts receivable without recourse. The factor retained 10% of the accounts receivable as an allowance for sales returns and charged a 5% commission on the gross amount of the factored receivables. What amount of cash did Aloe receive from the factored receivables
Answer: $68,000
Explanation:
Based on the information that have been provided in the question, the amount of cash that Aloe receive from the factored receivables will be:
= $80,000 - (10% × $80,000) - (5% × $80,000)
= $80000 - $8000 - $4000
= $80,000 - $12,000
= $68,000
Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula, also known as the simple elasticity formula) is:_______A 0.6. B. 0.75. C. 025. D. 20.
Answer:
Option A is correct
Price elasticity of demand =0.6
Explanation:
Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.
Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic
PED is computed as follows:
PED = % change in quantity /% change in Price
% change in demand = (100-80)/100 × 100 = 20%
% change in price =(0.75-1)/0.75 × 100 = 33.33%
PED = 20%/33.33% = 0.600
Price elasticity of demand =0.6
James has $1500 to open a checking account. He can maintain a monthly balance of at least $1000. He plans to use the ATM four times per month at his local branch. He does not overdraft his account and plans to use direct deposit. He also plans to pay his bills online and he averages 8 bills per month. Bank Account Terms and Conditions Bank Account terms and conditions. Bank A is best for James. James wants an account with the lowest fees. Which checking account would be best for James? Account A Account B Account C Account D
Answer: Account A
Explanation:
Account A would be best for James as it provides the most value for the things he would like to do.
ATM charges are free with this account so he can use the ATM four times in the month at no chargeHe would pay no monthly fees as he uses direct debitHe would pay an annual fee of $0And as online payments are free, he would not have to worry about getting charged for the 8 bills to process in the month.Answer:
account a
Explanation:
A company’s perpetual preferred stock has a par value of $65 per share and it pays a dividend rate of 6.25% per year. The preferred stock’s market value is $58.63 per share and the company’s tax rate is 31%. If the flotation costs for preferred stock are 6.5%, what is the company’s annual cost of new preferred stock financing?
Answer:
Cost of preferred stock=7.41 %
Explanation:
A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future.
A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows:
Cost of preferred stock = D/P(1-f) × 100
D- Preference dividend
P- stock price
F- flotation cost
Preference dividend = Coupon rate × Nominal value
DATA
Nominal value = $65
Stock price = $58.63
Dividend rate=6.25%
Flotation cost = 6.5%
Preference dividend = 6.25%× 65 = 4.063
Cost of preferred stock =(4.063 /58.63×(1-0.065) × 100 = 7.41 %
Cost of preferred stock=7.41 %
ABC is a Medicare Advantage (MA) plan sponsor. It would like to use its enrollees’ information to market non-health related products such as life insurance and annuities. To do so it must obtain authorization from the enrollees. Which statement best describes the authorization process?
Answer is given below
Explanation:
The Medical insurance company provided all consent knowledge to the patient or beneficiary. It should be well defined so that it can dispel all the doubts of the beneficiary. Must have a valid registration page. The beneficiary should give all the information related to the company. and the registration page should ask for all the information needed for a future claim. There should be a proper definition of coverage of illnesses and risks so that the beneficiary has no doubt.Answer:
Authorization may be obtained by directing a beneficiary to a website to provide consent as long as the website includes a mechanism for an electronic signature that is valid under applicable law
Explanation:
Suppose that the market portfolio is equally likely to increase by 24% or decrease by 8%. Security "X" goes up on average by 29% when the market goes up and goes down by 11% when the market goes down. Security "Y" goes down on average by 16% when the market goes up and goes up by 16% when the market goes down. Security "Z" goes up on average by 4% when the market goes up and goes up by 4% when the market goes down. The expected return on security with a beta of 0.8 is closest to: 3.2% 6.4% 0.0% 7.2%
Answer:
The expected return on security with a beta of 0.8 is closest to 7.2%.
Explanation:
This can be determined as follows:
Since the return of security Z remains at 4% despite the change in the market, security Z is the risk-free asset.
Note that a risk free asset is an asset which its returns does not change with change in the market.
Using the Capital Asset Pricing Model (CAPM) formula, we have:
Er = Rf + (B * MPR) ............................................ (1)
Where;
ER = Expected return = ?
Rf = Risk-free rate = Rate of return of security z = 4%
B = Beta = 0.8
MPR = Market risk premium = Expected return on the market rate - Risk-free rate
Expected return on the market rate = (50% * 24%) + (50% *(-8%)) = 8%
Therefore, we have:
MPR = 8% - 4% = 4%
Substituting the values into equation (1), we have
Er = 4% + (0.8 * 4%)
Er = 0.072, or 7.2%
Therefore, the expected return on security with a beta of 0.8 is closest to 7.2%.
A theater group made appearances in two cities. The hotel charge before tax in the second city was $500 lower than in the first. The tax in the first city was 8%, and the tax in the second city was 8.5%. The total hotel tax paid for the two cities was $823.75. How much was the hotel charge in each city before tax?
Answer:
Hotel charge in city 1= $5,250
Hotel charge in city 2= $4,750
Explanation:
A theater group made an appearance in two cities.
Let x represent the amount charged in the first city
Let y represent the amount charged in the second city
The hotel charge before tax in the first city is $500 lower than the second city
y= x-500......equation 1
The tax in the first city is 8%
= 8/100
= 0.08
The tax in the second city is 8.5%
= 8.5/100
= 0.085
0.08x + 0.085y= 823.75.........equation 2
Substitute (x-500) for y in equation 2
0.08x + 0.085(x-500)= 823.75
0.08x + 0.085x - 42.5= 823.75
Collect the like terms
0.08x + 0.085x= 823.75+42.5
0.165x= 866.25
x= 866.25/0.165
x = 5,250
Substitute 5250 for x in equation 1
y= x-500
y= 5,250-500
y= 4,750
Hence the hotel charge in city 1 is $5,250 and the hotel charge in city 2 is $4,750
Havermill Co. establishes a $380 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $86 for Office Supplies, $163 for merchandise inventory, and $35 for miscellaneous expenses. The fund has a balance of $96. On October 1, the accountant determines that the fund should be increased by $76. The journal entry to record the reimbursement of the fund on September 30 includes a:
Answer:
Explanation:
Petty cash system is a form of policy that a company uses to administer cash for various miscellaneous needs , with the balance set at a fixed amount and reimbursed when exhausted and on monthly basis
Petty cash fund limit = 380
Petty cash balance as at September = 96
Petty cash reimbursement for the month = (opening balance - closing balance)
380 -96 = 284
The journal entry to record reimbursement as at September 30 =
Debit petty cash -284
Credit cash - 284.
Kindly note that the change in the petty cash balance policy occurred on October 1 after September 31 .
In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?
a. Great Britain
b. Italy
c. United States
d. Canada
Answer:
b. Italy
Explanation:
Even though this % doesn't apply to all corporations, it is still a very small number of shareholders that control corporations (and their board) on average. We can compare this situation to the American normality, where any shareholder that owns 5% or more of a large corporation is considered a major shareholder and must report himself/herself to the SEC as such.
In the US, many of the corporations would be considered closed corporations. The smaller the number of shareholders with large decision power, the less small shareholders can do.
Assume that a single commercial bank has no excess reserves and that the reserve ratio is 20 percent. If this bank sells a bond for $1,000 to a Federal Reserve Bank, it can expand its loans by maximum of:
Answer:
it should be only 1,000
Explanation:
In a case, that an individual commercial bank has no extra reserves and that the reserve ratio is 20 percent. If this bank sells a bond for $1,000 to a Federal Reserve Bank, it can expand its loans by maximum of $1,000.
When commercial banks receive loan from the Federal bank?Banks can acquire the loan from the Federal Banks to receive reserve responsibilities. The rate traveled to banks is called the discount rate, that is normally higher than the rate that banks hasten each other.
Banks can acquire from each another to meet reserve requirements, which is charged at the federal funds rate.
In the scenario of a single commercial bank with no surplus reserves and a reserve ratio of 20%. If this bank sells a bond to a Federal Reserve Bank for $1,000, it can increase its loan limit by $1,000.
Therefore, the loan can be expanded by the maximum of $1,000.
Learn more about the loan, refer to:
https://brainly.com/question/11794123
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5 years ago, an individual had invested $10,000 in an Investment Trust. Over those years, the trust has distributed $2,000, consisting of $1,600 of dividends and $400 of capital gains. The investor has reinvested these distributions in additional trust units. The investor's aggregate current cost basis in the Trust is:
Answer: $12,000
Explanation:
From the question, we are informed that years ago, an individual had invested $10,000 in an Investment Trust and that over those years, the trust has distributed $2,000, consisting of $1,600 of dividends and $400 of capital gains and also that the investor has reinvested these distributions in additional trust units.
The investor's aggregate current cost basis in the Trust will be the beginning basis which was $10,000 added to the $2000 that was distributed. This will be $12,000.
Megan is a salesperson for a company that manufactures chemicals. While reviewing her new leads, Megan learned that two of them just signed contracts with one of her company's major competitors. Which of the following best describes why Megan will not consider these two leads as sales prospects?a. They do not have the budget or financial resources to purchase the product.b. They do not have a need for the products or services her company is offering.c. They are too busy to meet with salespeople.d. They do not have the authority to make a purchase decision.e. They are not in her company's target market.
Answer: They do not have a need for the products or services her company is offering.
Explanation:
From the question, we are informed that Megan is a salesperson for a company that manufactures chemicals and that while reviewing her new leads, she learned that two of them just signed contracts with one of her company's major competitors.
Megan will not consider these two leads as sales prospects because they do not have a need for the products or services her company is offering. This is because they signed a contract with their competitors.
The receipt of dividends and interest from abroad as a result of ownership of foreign assets by a country's residents is recorded as what:____________.
Answer:
income-generating assets under the current account of the balance of payment.
Explanation:
Remember, the related term balance of payment refers to the calculation of a country's transactions at the international level for a specific period.
In other to determine the flow of money in and out of a country, the receipts from income-generating assets such as stocks (in the form of dividends) are thus recorded in the current account.
The following information is available for Sheridan Company:
Sales $670000
Total fixed expenses $150000
Cost of goods sold 470000
Total variable expenses 420000
A CVP income statement would report:_______
a. Gross profit of $160,000
b. contribution margin of $400,000
c. gross profit of $190,000
d. contribution margin of $190,000
Answer:
The answer is $250,000
Explanation:
NOTE: The answer to the question is not among the options.
Contribution margin in Cost-Volume-Profit (CVP) is sales minus variable cost.
Sales - $670,000
Total variable expenses $420,000
Therefore in CVP income statement, contribution margin is:
$670,000 - $420,000
= $250,000.
Gross profit is can never be calculated in CVP income statement
Elderly travelers as well as those who are physically challenged find it hard to climb stairs when they are allotted motel rooms which are not on the first floor.The Convenience Inn has succeeded in catering to this specific group of customers via its motels,all of which have one floor of rooms with no stairs to climb.Which of the following refers to The Convenience Inn's success in identifying distinct groups of consumers whose needs,wants,and purchasing behavior differ from others in important ways?A) market penetrationB) market developmentC) market segmentationD) product developmentE) diversification
Answer:
C) market segmentation
Explanation:
The market segmentation refers to the segmentation of the market i.e division that are depended upon various attributes like the same interested, needs, locations, taste and preferences. It could be behavior, geographical, psychographic, demographic, etc
In the given situation, since Convenience Inn is succeeded in catering to the particular customer groups so this represents the market segmentation
Payroll deductions are the same for all employees. True False
Answer:
may be yeah...it can be true
Answer:
False
Explanation:
because it would mean that all the jobs that are done are the same just like your work position like manager, and other stuff like that
2. When a U.S. citizen buys $500 of Chinese-made parts for a motorcycle, a. U.S. consumption falls by $500, U.S. net exports decline by $500, and U.S. GDP declined by $1000. b. U.S. consumption does not change, U.S. net exports decline by $500, and U.S. GDP declined by $500. c. U.S. consumption increases by $500, U.S. net exports remain the same, and U.S. GDP increases by $500. d. U.S. consumption increases by $500, U.S. net exports decline by $500, and U.S. GDP remains the same.
Answer:
D
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
The purchase increases consumption spending on durable goods by $500. Also, because the good is imported, imports increase by $500. Import in a negative function of net export. Net export decrease by $500.
the increase in consumption cancels out the decreases in net export, so GDP remains the same
How to calculate momentum?
Answer:
p=mv
Explanation:
the formula for momentum is
p=mv
Answer:
By multiplying mass and velocity
Explanation:
Palmer goes to a truck dealership and asks for a truck capable of handling a 5000-pound load.He makes it clear that it is up to the salesman to select an appropriate truck.Without saying anything about the truck's load-carrying capacity,the salesman selects a certain truck for Palmer.Relying on the salesman's choice,Palmer buys the truck in question.However,the truck can only handle a 2500-pound load.Palmer wants to sue the dealership because he didn't get the truck he desired.Which of the following product liability theories gives Palmer his best chance of recovery?
A) Express warranty
B) Implied warranty of fitness
C) Implied warranty of merchantability
D) Section 402A
Answer:
Correct Answer:
B) Implied warranty of fitness
Explanation:
A products liability claim normally involves injury or damage caused by a defective product. Proving the claim usually involves one or more of three basic theories of liability: negligence, breach of contract/warranty, and strict liability.
Since there was a bridge of warranty by the truck dealership despite Palmer demanding the best truck, he would be able to sue the dealership under implied warranty of fitness.
If the elasticity of demand for spring break packages to cancun is -5 , and if you notice that this year in cancun the quantity of packages demanded increased by 10% , then what happened to the price of cancun vacation packages ?
Answer: Price reduced by 2%
Explanation:
The price elasticity of demand shows how the demand for a good will change as a result of a change in price. Demand will usually increase as a result of a decrease in price because people tend to demand more when goods are cheaper.
The formula is;
Price elasticity of demand = ΔQuantity demanded / Δ Price
-5 = 10% / P
-5P = 10%
ΔP = -2%
The free rider problem is a situation in which A. one agent secures benefits that others pay for B. all of the above. C. none of the above. D. there are excessive subsidies given to polluting buses or other forms of mass transit E. Effluents such as CFCs combine with ozone and decrease concentrations of that protective chemical F. perfect property rights exits
Answer:
b). one agent secures benefits that others pay for.
Explanation:
The free-rider problem is described as the problem when some individuals consume or take the benefit of a resource without paying for it. in this problem, one agent is being benefitted from the resources that the others are paying for. This creates a load on a shared resource and eventually causes market failure. In order to cope with this problem, the organizations must ensure a fair distribution of resources and their benefits as per the payment made by the agents. Therefore, option B is the correct answer.
There is a different short-run Phillips curve for every level of the ___________ inflation rate. The inflation rate at which the short-run Phillips curve intersects the long-run Phillips curve equals the ___________ inflation rate.\
Answer: expected; expected
Explanation:
The Phillips curve is an economic concept whereby it is stated that there is a stable and inverse relationship between inflation and the unemployment in an economy.
According to this theory, inflation is as a result of economic growth and this will lead to reduction in unemployment.
There is a different short-run Phillips curve for every level of the expected inflation rate. The inflation rate at which the short-run Phillips curve intersects the long-run Phillips curve equals the expected inflation rate.
Starling Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The old machine can be sold for $1,500. A new high-speed machine can be purchased at a cost of $25,000. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Answer: increase of $11,000
Explanation:
Based on the information that have been provided in the question, the five-year differential effect on profit from replacing the machine will be:
= $25000 - [5 × ($26,000 - $23,500)] - $1500
= $25,000 - (5 × $2500) - $1500
= $25,000 - $12,500 - $1,500
= $25,000 - $14,000
= $11,000
Therefore, there will be an increase of $11,000.
Hudson Corp. operates several factories that manufacture medical equipment. The factories have a historical cost of $200 million. Near the end of the company’s fiscal year, a change in business climate related to a competitor’s innovative products indicated to Hudson’s management that the $170 million carrying amount of the assets of one of Hudson’s factories may not be recoverable. Management identified cash flows from this factory and estimated that the undiscounted future cash flows over the remaining useful life of the factory would be $150 million. The fair value of the factory’s assets is reliably estimated to be $135 million. The change in business climate requires investigation of possible impairment. Which of the following amounts is the impairment loss?
A) $15 million.
B) $20 million.
C) $35 million.
D) $65 million.
Answer:
C) $35 million.
Explanation:
The computation of the impairment loss is shown below:
= Carrying amount of the assets - fair value of the factory assets
= $170 million - $135 million
= $35 million
Since the carrying amount exceeds the fair value of the asset so the impairment loss is recorded and hence the same is to be considered.
Hence, the correct option is c.
Assume Jones Manufacturing begins March with 20 units of inventory that cost $15 each. During March, the following purchases and goods sold were: March 15 Purchased 25 units at $18 30 Sold 30 units Using the FIFO inventory costing method and the perpetual system, what is the ending Merchandise Inventory on March 30?
Answer:
$270
Explanation:
The computation of the ending inventory using the FIFO method is shown below:
But first we have to determine the ending inventory units which is shown below:
= Beginning units + purchased units - sale units
= 20 units + 25 units - 30 units
= 15 units
Now the ending inventory is
= 15 units × $18
= $270
Hence, the ending inventory is $270
Identify two prices indices?
Answer:
Some notable price indices include:
Consumer price index.
Producer price index.
Employment cost index.
Export price index.
Import price index.
GDP deflator.....
Answer:
consumer price indexproducer price indexExplanation:
consumer price index: it measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
producer price index: it is a price index that measures the average changes in prices received by domestic producers for their output.
