Answer:
A) Yes, as his conduct was intentional.
Explanation:
Since in the question it is mentioned that adam decided to play a joke with the linda who is a coworker. Due to the acts of adam the linda was too scared during the whole incident
So as per the given options, the first option is correct as the act done by the adam is intentionally just for his fun
So, the option a is correct
A firm has to choose between two technologies; both produce same output with one being labor intensive and other being capital intensive. The firm will use labor intensive technology when _________________. Select the correct answer below: wages are less than the interest rate total cost of labor is less than total cost of capital average variable cost is less than average fixed cost labor is more productive than capital
Answer:
total cost of labor is less than total cost
Explanation:
In the case when the firm would use the labor intensive technology at the time when the marginal product from labor intensive would be more than the marginal product of capital intensive this is due to the rise in the firm benefit as the firm would produce and sell more
The other thing is that the cost of labor intensive would be less than the capital intensive cost. This cost would benefit the organization with respect to the decision making
A railroad company is required to pay 79,860, which is due three years from now. The company invests 15,000 in a bond with modified duration 1.80, and 45,000 in a bond with modified duration Dmod, to Redington immunize its position against small changes in the yield rate. The annual effective yield rate for each of the bonds is 10%. Calculate Dmod.
Answer:
3.04
Explanation:
Calculation to determine Dmod.
First step is to calculate the present value of the assets which also represent the present value of the liability
Present value of the assets =$15,000+$45,000
Present value of the assets = $60,000
Second step is to calculate the modified duration of the assets which is the weighted average
Modified duration of the assets=($15,000/$60,000)/1.80+$45,000/$60,000Dmod
Modified duration of the assets=0.25(1.80) + 0.75Dmod
Third step is to calculate the Modified duration of the liability
Modified duration of the liability =3/(1+0.1)
Modified duration of the liability =3/1.1
Now let calculate Dmod
Dmod = (3/1.1 – 0.45)/0.75
Dmod=(2.7272-0.45)/0.75
Dmod=2.2772/0.75
Dmod=3.036
Dmod=3.04 (Approximately)
Therefore Dmod is 3.04
On April 1, Dallow, Inc. factored $160,000 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 Dallow receive from the factored receivables
Answer:
$136,000
Explanation:
According to the scenario, computation of the given data are as follows,
Amount receivable = $160,000
Allowance for sales return = 10% × $160,000 = $16,000
Commission = 5% × $160,000 = $8,000
So, amount of cash from factored receivables can be calculated by using following formula,
Cash from factored receivables = Amount receivable - Allowance for sales return - Commission
= $160,000 - $16,000 - $8,000
= $136,000
A company had total liabilities of $275,000 and the owner’s equity was $1,722,000. According to the fundamental accounting equation, total assets must be:
Answer:
1,997,000
Explanation:
Assets = Liabilities + Owners Equity
Assets=275,0000 + 1,722,000
Assets = 1,997,000
1. Define business. Explain the functions of business.
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↦ Business is an economic activity that is directed towards acquiring and earning profit and wealth through customer's satisfaction. It plays an important role for the economic development of the country and uplift living standard of the people. Some of the functions of business are described below :
Creation of utilities : For the fulfillment of needs of customers , business creates various types of utilities. A business has many components and each component is involved in the creation of the certain utility. For instance : manufacturers create from utility , transportation system created place utility , warehousing time utility and insurance companies risk utility.Generation of employment : Business is a source of employment. Various types of employees are required to a business. In industries , both skilled and unskilled manpower are required for production , distribution and auxiliaries functions. Hence , the development of industry and commerce helps to solve the unemployment problem of a nation.Earning Foreign Currency : Business is the main source of earning Foreign Currency. Foreign currency can be earned by exporting surplus products and services to foreign countries. The development of export trade brings favourable balance in payment.Provides investment opportunities : Business provides investment opportunities to the investors in production and distribution activities. Depending on the nature of investment ; investors receive dividend , interest or other financial benefits. The persons of organizations having sufficient capital can invest their money in production and commercial activities according to their interest , capability and knowledge.[tex] \large{ \tt{✺ \: STUDY \: TIP}} : [/tex]
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Partial balance sheets and additional iformation are listed below for Sowell Company.
SOWELL COMPANY
Partial Balance Sheets
as of December 31
Assets 2011 2010
Cash $40,000 $20,000
Accounts Receivable 70,000 85,000
Inventory 40,000 35,000
Liabilities
Accounts Payable $54,000 $62,000
Additional Information:
Net income was $88,000.
Depreciation expense was $19,000.
REQUIRED: Prepare the operating activities section of the statement of cash flows for 2011 using the indirect method.
Answer and Explanation:
The preparation of the operating activities section is presented below
Cash Flows from operating activities
Net Income $88,000
Adjustment made for non cash items:
Depreciation Expense $19,000
Add: Decrease in Account Receivable $15000 ($70,000 - $85,000)
Less: Increase in Inventory $(5000) ($40,000 - $35,000)
Less: Decrease in accounts payable $(8000) ($54,000 - $62,000)
Net cash flows from operating activities $109,000
An aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer.
Requied:
What would weaken the company's decision to merge with QueenAir?
Indicate what components of GDP (if any) each of the following transactions would affect.
Transaction Consumption Investment Government Net
Purchases Exports
a. Dell sells a desktop computer from its
inventory to the Johnson family.
b. Your parents buy a bottle of French wine.
c. Honda expands its factory in Ohio.
d. California hires workers to repave Highway 101.
e. The federal government sends your grandmother
a Social Security check.
f. You pay a hairdresser for a haircut.
g. Your parents buy a new house from a local builder.
h. Uncle Henry buys a new refrigerator from a domestic
manufacturer.
Answer:
a. Dell sells a desktop computer from its inventory to the Johnson family.
Component of GDP to be affected: Consumption
b. Your parents buy a bottle of French wine.
Component of GDP to be affected: Consumption
c. Honda expands its factory in Ohio.
Component of GDP to be affected: Investment
d. California hires workers to repave Highway 101.
Component of GDP to be affected: Government Purchases
e. The federal government sends your grandmother a Social Security check.
Component of GDP to be affected: No impact
f. You pay a hairdresser for a haircut.
Component of GDP to be affected:
g. Your parents buy a new house from a local builder.
Component of GDP to be affected: Consumption
h. Uncle Henry buys a new refrigerator from a domestic manufacturer.
Component of GDP to be affected: Consumption
Julie is purchasing a home for $169,000.00. Her loan has been approved for a 30-year fixed-
rate loan at 5 percent annual interest. She will pay 20 percent of the purchase price as a down
payment. What is the total interest she will pay on her loan?
$135,200.87
$142,613.78
$126,168.64
$122,877.92
Answer:
Julie
The total interest she will pay on her loan is nearly:
= $126,168.64
Explanation:
a) Data and Calculations:
Cost of purchasing a home = $169,000
Downpayment (20% * $169,000) = $33,800
Amount of loan = $135,200 ($169,000 - $33,800)
Interest rate per annum = 5%
From an online financial calculator:
Loan Amount 135200
Loan Term 30 years
0 months
Interest Rate 5
Compound
Annually (APY)
Pay Back Every Year
Results:
House Price $169,000.00
Loan Amount $135,200.00
Down Payment $33,800.00
Total of 360 Mortgage Payments $261,281.82
Total Interest $126,081.82 on a monthly basis
Mortgage Payoff Date Jun. 2051
Payment Every Year $8,794.95
Total of 30 Payments $263,848.62
Total Interest $128,648.62 on a yearly basis
23. Maria, a new employee, noticed that her supervisor, Jasmine, approved an expense report submitted by a co-worker that resulted in the company for which they both worked paying for the co-worker's car repairs that were needed due to an accident that happened when co-worker was on a personal errand instead of company business. Jasmine's actions could encourage Maria to
Answer:
She failed to cover up the co-worker's improper claim of a personal expense on a company expense report.
Explanation:
Analyzing the above case, it is correct to say that the supervisor Jasmine failed to cover up the undue complaint of the co-worker, as the accident occurred when he was on a personal mission and unrelated to the company's business, which makes the company not has legal obligations to pay for repairs to his car and these are broken down in a company expense report like the one approved by Jasmine.
Therefore, the supervisor acted unethically and did not follow the company's legal regulations.
A trial balance before adjustment included the following:
Debit Credit
Accounts receivable $133,000
Allowance for doubtful accounts $1,080
Sales 471,000
Sales returns and allowances 5,200
Required:
Prepare journal entries assuming that the estimate of uncollectible is determined by taking (1) 4% of gross accounts receivable.
Minors are liable for the reasonable value of the necessary:______.
a. actually furnished.
b. that they agreed to purchase.
c. that their parents agreed to pay for.
d. all of these.
Answer:
b. that they agreed to purchase.
Explanation:
A minor is a person who is under the age of 18 and unable to make decision on his own such as mentally impaired or incompetent persons .
A minor cannot enter a contract like adults but if under any circumstance they enter into a contract of sale purchase of daily goods like clothing etc, they are liable to pay the price which they agreed to pay.
Their parents are liable only if the contract was made according to the parent's will etc.
If the minor is unable to pay the agreed amount then the minor should return the goods or fulfill any other liability as imposed by the court of law.
Define corporate culture. What are the components of a good corporate culture? Why do you think that corporate culture has such a huge impact on the success of a company? Please share your thoughts.
Answer:
Corporate culture, also known as company culture, refers to a set of beliefs and behaviors that guide how a company’s management and employees interact and handle external business transactions.
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of peanut butter each quarter.
The following data are available for the third quarter of 2017.
Total fixed manufacturing overhead.......................................................90,000
Fixed selling and administrative expenses........... .. . .. . .. . . . . .. . . . . . 20,000
Sale price per case..................................................................................32
Direct materials per case .......................................................................15
Direct labor per case ........................................................................6
Variable manufacturing overhead per case ..........................................3
a. Compute the cost per case under both absorption costing and variable costing.
b. Reconcile any differences in income. Explain.
c. Compute te net income under both absorption costing and variable costing.
Answer:
a. Cost per case under Absorption costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case + Fixed manufacturing overhead per case
= 15 + 6 + 3 + 90,000/ 30,000 cases
= $27
Cost per case under Variable costing:
= Direct materials per case + Direct labor per case + Variable manufacturing overhead per case
= 15 + 6 + 3
= $24
b. First we need to calculate income under both methods:
Under Absorption costing:
= Sales - Cost of goods sold - Selling and Admin expenses
= (30,000 cases * 32) - (30,000 * 27) - 20,000
= $130,000
Under Variable Costing:
= Sales - Cost of Goods sold - Fixed manufacturing overhead - Selling and Admin expenses
= (30,000 * 32) - (30,000 * 24) - 90,000 - 20,000
= $130,000
There is no difference in income because the cases manufactured equals the cases sold.
Which could argue that a programmer deserves to have his/her work protected by a copyright purely as a result of his/her inalienable right to try to reap the benefits from his/her labor?
Answer:
What
Explanation:
Which of the following types of promotion is usually the least expensive for a company?
A.
Personal selling
B.
Publicity
C.
Direct marketing
D.
Advertising
Answer:
B. Publicity.
Explanation:
A company can publicize its names, products, and services by organizing an event or by organizing a seminar. The aim of publicity is to make consumbers aware about the products and services that a company deals in.
After graduating from UCF, you plan to purchase a small condominium for $100,000. You will be required by the bank to put a down payment of 10% of the purchase price. You plan to finance the loan for 30 years. Assume monthly payments and a nominal rate (monthly compounding) of 3%. What percentage of the first 25 payments goes toward paying principal
Answer:
Percentage of the first 25 payments goes toward paying principal is 41.95%.
Explanation:
Note: See the attached excel file for the amortization schedule for the first 25 months.
In the attached excel file, the monthly is calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
PV = Present value or the balance to pay = Cost * (100% - Percentage of down payment) = $100,000 * (100% - 10%) = $90,000
P = Monthly payment = ?
r = Monthly interest rate = Nominal rate / 12 = 3% / 12 = 0.25%, or 0.0025
n = number of months to repay = 30 years * 12 months = 360
Substitute the values into equation (1) and solve for P, we have:
$90,000 = P * ((1 - (1 / (1 + 0.0025))^360) / 0.0025)
$90,000 = P * 237.189381504283
P = $90,000 / 237.189381504283
P = $379.44
From the attached excel file, we have:
Total payment for the first 25 months = $9,486.09
Total repayment of principal for the first 25 months = $3,979.17
Therefore, we have:
Percentage of the first 25 payments goes toward paying principal = (Total repayment of principal for the first 25 months / Total payment for the first 25 months) * 100 = ($3,979.17 / $9,486.09) * 100 = 41.95%
Which of the following is incorrect?
a. Future value means earning interest on interest.
b. External equity and dividends can be used as plug variables in a financial plan.
c. A financial plug variable is the designated source of external financing needed to deal with any shortfall or surplus in financing and thereby bring the balance sheet into balance.
d. There are two primary mechanisms for electing directors: cumulative voting and straight voting.
e. The rate required in the market on a bond is the yield to maturity.
Answer:
b. External equity and dividends can be used as plug variables in a financial plan.
Explanation:
When the external equity and dividend is applied like the plus variables in the financial plan so as a plug variable it represent the external financing source i.e. dividend that required to deal with any deficit or surplus in the financing and the external equity is not a source of the external financing
Therefore the option b is considered
Behavioral finance is the study of:_________.
a. how investors react to accounting-based profit fluctuations.
b. how investors react to interest rates and foreign currency fluctuations.
c. how investors react to certain ways to diversify a portfolio.
d. how investors react to the amount of risk versus the amount of return in securities.
Answer:
D). how investors react to the amount of risk versus the amount of return in securities.
Explanation:
Behavioral finance can be regarded as study involving influence of psychology on investors behavior as well as financial analysts. encompass effects that comes after this on the markets. It explains that investors cannot always described as rational. It should be noted that the Behavioral finance is the study of how investors react to the amount of risk versus the amount of return in securities.
Desert Company issued $3,158,061 of 12% bonds on January 1, 2021. The market rate of interest at that time was 9%. The bonds pay interest quarterly each March 31, June 30, September 30, and December 31. What is the amount of the cash payment Desert is legally obligated to pay its creditor each quarter?
Answer:
Quarterly Interest Payment = $94741.83
Explanation:
The amount of interest payment made by coupon bonds depends on the coupon rate they carry regardless of what the interest rate in market is. Thus Desert will have to pay annual coupon rate of 12% of the face value of the bond. However, as the coupon payments are made quarterly, the quarterly interest that will be paid by Desert will be,
Quarterly Interest Payment = 3158061 * 12% * 1/4
Quarterly Interest Payment = $94741.83
Stunning Motors, Ltd. makes economy autos for the world market. Stunning has decided to branch out and produce economical, fuel efficient motor bikes. They are exploring a joint venture With Bay Bikes, a Chinese motorbike company active in the Chinese market. In the meantime, before any formal agreement on a joint venture is reached, Bay Bikes is working with Stunning's R&D engineers to create a feasibility study on the Chinese market potential. This is an example of ___________
a. product differentiation
b. non-equity-based strategic alliance
c. sole proprietorship
d. entrepreneurial orientation
Answer:
b. non-equity-based strategic alliance
Explanation:
In the case of the non-equity strategic alliance, the organizations develop the agreement for sharing the resources without developing the distinct entity or equity i.e. shared.
Non-equity alliances are considered to be loose and not formal as compared to the partnership involving equity.
So as per the given situation, the option b is correct
Which of the following is not an advantage of delegating authority at Red Frog Events?
a
Delegation helps develop subordinates
b
Subordinates learn how to make decisions
c
Some managers are too disorganized to delegate appropriately
d
An event manager can get more work done
Answer:
c. Some managers are too disorganized to delegate appropriately
Explanation:
Generally, the advantage of delegating authority in a firm can be numerous. Hence, considering the question, the benefit of delegating authority at Red Frog Events is no different.
Therefore, considering the available options, the statement that is NOT an advantage of delegating authority at Red Frog Events is "Some managers are too disorganized to delegate appropriately."
In contrast, some of the advantages of delegating authority are:
1. Delegation helps develop subordinates: as subordinates take more authority in some cases, they grow in decision-making and overall growth.
2. Subordinates learn how to make decisions: as subordinates are allowed to make decisions, they learn to understand how to make proper decisions
3. An event manager can get more work done: when subordinates are delegated with authority, it helps the manager focus more on other areas that need his attention, thereby getting more work done.
Boenisch Corporation produces and sells a single product with the following characteristics: The company is currently selling 8,000 units per month. Fixed expenses are $406,000 per month. Management is considering using a new component that would increase the unit variable cost by $3. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change
Answer: Increase by $2,000
Explanation:
Current net operating income is:
= Contribution margin - Fixed costs
= (68 * 8,000) - 406,000
= $138,000
If component is added, Variable cost increases by $3 to $105. New contribution margin is:
= 170 - 105
= $65
Units sold increases by 400 to 8,400.
Net operating income becomes:
= (65 * 8,400) - 406,000
= $140,000
Net operating income increased by:
= 140,000 - 138,000
= $2,000
Green Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $43 to buy from farmers and $14 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $19 or processed further for $18 to make the end product industrial fiber that is sold for $51. The beet juice can be sold as is for $34 or processed further for $22 to make the end product refined sugar that is sold for $51.
Required:
What is the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar?
Answer:
Financial advantage $5
Explanation:
The computation of the financial advantage (disadvantage) for the company is shown below:
Combined sales value ($51 + $51) $102
Less: further processing ($18 + $22) -$40
Sugar beets cost -$43
Cost to crush -$14
Financial advantage $5
We simply deduct all cost from the revenue so that the financial advantage or disadvantage could come
Pharmicon, Inc., a pharmaceutical firm, discovered a complete cure for the common cold. The medicine could be put into a pill that would be taken once a day for a week. Knowing these results, directors of Pharmicon decided to delay the press release and bought thousands of shares of Pharmicon stock. After the purchases, Pharmicon issued a press release about the pill. The price of the stock skyrocketed. When the SEC found out about the purchases and the delay in the press release, it sued Pharmicon for violating Rule 10b-5. The court in this case would most likely rule in favor of Group of answer choices
Question Completion:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
b.Pharmicon, because the information was not material.
c.the SEC, because owning company stock is a conflict of interest for the directors.
d.Pharmicon, because they issued a press release to the public
Answer:
Pharmicon, Inc.
The court in this case would most likely rule in favor of:
a. the SEC, because the information about the cure was material and was not disclosed to the public prior to the directors' purchase of the stock.
Explanation:
SEC's Rule 10b-5 forbids insider trading and, therefore, enables the SEC to sue individuals who use the privileged information they acquire about an entity's security to buy or sell the entity's securities. The information may be acquired illegally or legally, provided it is not publicly available. Insider trading exists when a professional breaches a fiduciary duty or betrays the trust and confidence reposed in him by trading on a security based on material, nonpublic information about the security.
A company issues the following bonds on June 1, 2002. Series A (counts as two) Series B $50 million BBB June 1, 2030 June 1, 2008 100 Par Value Rating Maturity Call date Call price $50 million BBB June 1, 2030 Non-callable -- If both bonds have the same market liquidity, the yield-to-maturity on the Series A bond should be [ ] than yield-to-maturity on Series B bond. a) higher b) lower c) the same d) either higher or lower(depending notherfactors)
Answer: a. Higher
Explanation:
Series A is a callable bond which means that the company will be able to buy it back after a certain period of time at a price dictated in the contract.
This provision is an advantage to the Issuer but not the investors so the Issuer will have to pay the investors more to get them to buy the bond even with the presence of this provision.
This additional payment will come in the form of a higher yield. This is why callable bonds have higher yields than non-callable comparable bonds.
You are considering attending college for one term. Your costs for one term include: tuition: $21,000 food and apartment rent: $6,000 books and college supplies: $2,000. Also, college attendance implies that when you switch work hours to study hours your income will fall from $10,000 to $3,000 (for the full term). What is the opportunity cost of going to college for this term, assuming that your food and apartment rent are the same with college as without it
Answer:
Opportunity cost of going to college $7,000
Explanation:
Opportunity cost is the value of the next best alternative forgone in favour of a decision. In this scenario, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
$
Before the college he could make 10,000
Switching work hours for study, he will now make 3,000
Opportunity cost 7,000
Opportunity cost of going to college $7,000
The opportunity cost of going to college for this term, assuming that my food and apartment rent are the same with college as without it is $7,000
Opportunity cost is an economic term for expressing cost in terms of foregone alternative. It is what has to be given up in order to have an alternative.
With regards to the above, opportunity cost would mean any income sacrificed by the college students because he wanted to take a college education.
Opportunity cost
= Before the college, he could make - Switching work hours for study, he will now make
= $10,000 - $3,000
= $7,000
Hence, the opportunity cost of going to college would be $7,000
Learn more at : https://brainly.com/question/8846809
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available: Quantity of direct labor used 5,000 hrs. Actual rate for direct labor $22.75 per hr. Bicycles completed in October 800 bicycles Standard direct labor per bicycle 6.0 hrs. Standard rate for direct labor $24.00 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance $fill in the blank 1 113,750 Direct Labor Time Variance $fill in the blank 3 4,800 Total Direct Labor Cost Variance $fill in the blank 5 b. How much direct labor should be debited to Work in Process
Answer:
A. Direct Labor Rate variance -$6250 Favorable
Direct labor time variance $4800 Unfavorable
Total Direct Labor Cost Variance $-1450 Favorable
B. Dr Work In Process $116,650
Explanation:
A.
Calculation to determine Direct Labor Rate variance using this formula
Direct Labor Rate variance= (actual hours* actual rate)- (actual hours * standard rate)
Let plug in the formula
Direct Labor Rate variance=( 5000 *22.75) - (5000*24)
Direct Labor Rate variance= $113750- 120,000= Direct Labor Rate variance-6250 Favorable
Calculation to determine Direct labor time variance using this formula
Direct labor time variance= (Actual hours* Standard rate)- (Standard hours * Standard rate)
Let plug in the formula
Direct labor time variance= (5000 * 24) -(4800 * 24)
Direct labor time variance= 120,000-115200
Direct labor time variance= 4800 Unfavorable
Calculation to determine Total Direct Labor Cost Variance using this formula
Total Direct Labor Cost Variance= Direct Labor Rate variance + Direct labor time variance
Let plug in the formula
Total Direct Labor Cost Variance= -6250 Favorable + 4800 Unfavorable
Total Direct Labor Cost Variance= -1450 Favorable
b. Preparation of the journal entry to determine How much direct labor should be debited to Work in Process
Dr Work In Process $116,650
Cr Direct Labor Cost Variance $ 1,450
Cr Payroll $ 115,200
Therefore the amount of Direct Labor to be Debited to Work In Process is $116,650
Consider a market with two firms, Kellogg and Post, that sell breakfast cereals. Both companies must choose whether to charge a high price ($) or a low price ($) for their cereals. These price strategies, with corresponding profits, are depicted in the payoff matrix to the right. Kellogg's profits are in red and Post's are in blue. What is the cooperative equilibrium for this game?
Answer:
Both the two companies to choose a price of $4.50
Explanation:
Based on the information given we were told that the two companies have to choose whether they will charge either a price that is high or a price that is low for their cereals which means that the two companies COOPERATIVE EQUILILBRIUM for this game is that both the two companies have to choose a price of the amount of $4.50 which represent the high price.
Coronado Industries received proceeds of $122200 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $130000, pay interest annually on December 31, and have a call price of 101. Coronado uses the straight-line method of amortization. What is the amount of interest Coronado must pay the bondholders in 2020
Answer:
$7,800
Explanation:
Calculation to determine the amount of interest Coronado must pay the bondholders in 2020
Using this formula
Interest=Bonds issued percentage*Bonds face value
Let plug in the formula
Interest=6%*$130,000
Interest=$7,800
Therefore the amount of interest Coronado must pay the bondholders in 2020 is $7,800