Question Completion:
The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.
a. events of compliance
b. certificate of compliance
c. events of termination
d. events of default
Answer:
The section of a loan agreement that describes circumstances in which the creditor obtains additional rights is called the ______section.
d. events of default
Explanation:
In loan covenants, an event of default is the meeting of some specified conditions or thresholds that allow the lender or creditor to demand immediate and full repayment of a debt or meeting of an obligation. Events of default may relate to delinquent payment, breach or insolvency, etc. As a breach of a contract, an event of default is a serious failure on the borrower to observe a provision of the contract. This leads to the lender calling for the termination of the contract.
You manage employees in several cities, and while you try to visit the various offices as much as possible, your travel schedule is unpredictable. When you do see an employee performing a desirable behavior, you are quick to praise that person. What reinforcement schedule are you using, and is it likely to be effective in promoting desirable behavior
Answer:
Variable ratio schedule; effective
Explanation:
Reinforcement schedules are designed to introduce or remove reinforcers of punishment after observation of operational behaviour of a given set of people.
There are 3 types: ratio schedule, interval schedule, and extinction schedule.
The most effective type of reinforcement schedule is the variable ratio schedule.
It involves introduction of reinforcers after a particular number of observed responses from the subjects, also for subjects that are exhibiting favourable behaviour reinforcers are removed.
This is more efficient because more focus is given to those people that are lagging behind.
For interval schedule there continues to be a schedule despite variability in behaviour across employees. This is inefficient and stressful.
Variable ratio schedule is exemplified in this instance where visits are variable, and employee performing a desirable behaviour are quick to be praised.
Which of the following is true?
a. Nominal GDP does not include childcare
b. Nominal GDP does not include intermediate goods
c. Nominal GDP does not take into account the effects of inflation
d. Nominal GDP does not include imported goods
Answer:
c. Nominal GDP does not take into account the effects of inflation
Explanation:
Nominal gross domestic product (GDP) can be described as a measure of the GDP or goods and services produced within the boundary of a country using current prices without taking into consideration the effects of inflation.
This nominal GDP is contrast to the real GDP which measures the GDP of a country by adjusting for the effect of inflation.
Therefore, the correct option is c. Nominal GDP does not take into account the effects of inflation.
what is consumer surplus
Explanation:
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In mainstream economics, economic surplus, also known as total welfare or Marshallian surplus, refers to two related quantities: Consumer surplus, or consumers' surplus, is the monetary gain obtained .
Answer:
Consumer surplus is defined as the difference between the consumers' willingness to pay for commodity and the actual price paid by them , or the equilibrium price .
a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
b. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
c. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
Required:
Record the bond issue and first interest payment on June 30, 2015.
Answer:
a. Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at par value
Dr Cash 70,000
Cr Bonds payable 70,000
June 30, 2015 first coupon payment
Dr Interest expense 2,450
Cr Cash 2,450
b. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at a discount
Dr Cash 63,948
Dr Discount on bonds payable 6,052
Cr Bonds payable 70,000
amortization of bond discount per coupon payment = $6,052 / 30 = $201.73
June 30, 2015 first coupon payment
Dr Interest expense 2,651
Cr Cash 2,450
Cr Discount on bonds payable 201
c. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
January 1, 2015, bonds issued at a premium
Dr Cash 76,860
Cr Bonds payable 70,000
Cr Premium on bonds payable 6,860
amortization of bond premium per coupon payment = $6,860 / 30 = $228.67
June 30, 2015 first coupon payment
Dr Interest expense 2,221
Dr Premium on bonds payable 229
Cr Cash 2,450
Why should a global marketing manager consult local attorneys in other countries before creating a marketing campaign abroad?
Answer:
ok answer is c
Explanation:
i did this today and got a 100%
A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2,481. After installation the solar water heater will produce a small amount of hot water every day, forever, and will require no maintenance. How much must the homeowner save on water heating costs every year if this is to be a sound investment
Answer:
the question is missing the discount or interest rate that we must use to calculate the answer.
for example, if the interest rate is 5% per year, then this would be a good investment if the homeowner can save $2,481 x 5% = $124.05 per year.
but if the interest rate is 8%, then the homeowner would need to save at least $2,481 x 8% = $198.48 per year.
You and a friend have developed a weight loss supplement that speeds weight loss by 20%. You plan to form a business to manufacture and market the supplement. You want to minimize taxes but your prime concern is potential lawsuits from individuals who might get sick from taking the supplement.
1. What form of organization (partnership, LLC, corporation, etc.) will you choose?
2. What are the advantages and disadvantages of your choice?
Answer:
1. I would choose a limited liability company (LLC).
2. A LLC is a hybrid between a partnership and a corporation. The firm is a pass through entity, meaning that the owners are taxed directly (no corporate tax). But it also provides limited liability, so the owners are not personally liable for the firm's obligations.
Explanation:
A preferred stock that pays an annual dividend of $10, has a par value of $100, and has a required return of 5% will be valued at $200. Group of answer choices True False
Answer:
The answer is true
Explanation:
Vo = D/Kp
Vo is the value of preferred stock/shares
D is the dividend
Kp is the cost of preferred stock/share
To confirm whether the value of stock is actually $200, we perform the following:
D = $10
Kp = 5% or 0.05
10/0.05
=$200.
The answer is true
Why a manufacturer who makes watches involved in trade
Answer:
to make money, if they trade their watches they will be expanding their business
The terms are default, grace period, late payment fee, over the limit fee, and bad credit
Answer:
1. Bad credit
2. Over the limit fee
3. Late payment fee
Explanation:
1. Bad credit is a situation where a borrower fails to repay his bills on time. This can have an effect on his credit score, thus resulting in a bad credit score and the inability of lenders to lend money. This explains John's situation because he fails to pay on time.
2. Over the limit fee is charged when a person's balance exceeds his credit limit and this can result in a decline of transaction. Susan has apparently exceeded her limit and her transaction might be declined or the balance might be deducted when she pays the fee.
3. Late payment fee is charged when a person fails to complete his payment on the due date. Interest is being charged after the purchase which he pays at a later time because he failed to read the conditions of the credit card offer.
Moral hazard is a barrier to financing global growth because:_______
a. firms sometimes have trouble determining whether they need funds or not.
b. if investors have trouble identifying high-risk firms they may be unwilling to give money to creditworthy firms.
c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.
d. of the differences between financing using loans, portfolio investment and foreign direct investment.
Answer:
c. there is the possibility that the funds are used for riskier behavior than the lender agreed to.
Explanation:
True. The term "Moral Hazard" as used in an investment context, often refers to a scenario where one party with a lesser risk burden in a business agreement, deliberately takes investment risk that would be detrimental to others in the agreement who have a higher risk burden.
It is an unethical business practice; a moral hazard, and so acts as a barrier to investors who may want to finance global growth.
The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = $1.00. What is the euro-yen cross rate? Group of answer choices ¥1.00 = €0.80 ¥125 = €1.00 None of the above ¥1.00 = €125
Answer:
¥1.00 = €0.80
Explanation:
The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.
Answer:
The book gives a clear knowledge of marketing at both the strategic and conceptual level as well as the ____.
tactical, hands-on level
Explanation:
At the highest level of marketing management is the strategic level, which is more conceptual. Down the scale is the tactical marketing plan, which specifies the marketing tools and techniques which a company will use to meet its marketing goals. At this level, the tactical tools in use include advertising, sales promotions, and other activities that directly implement the strategic marketing plan. The tactical level reduces the business strategic goals to marketing objectives.
what is vegetable farming?
Required : You are to prepare the Arc's federal income tax return in good form . You are not to complete an Ohio state income tax return . The following and schedules are required and may be found in parts 1
Answer:
D
Explanation:
n order to build a new warehouse facility, the regional distributor for Valco Multiposition Valves borrowed $1.6 million at 12% per year interest. If the company repaid the loan in a lump sum amount after 2 years, what was the amount of the payment
Answer:
the amount of the payment is $2,007,040
Explanation:
The computation of the amount of the payment is as follows:
= Borrowed amount × (1 + rate of interest)^number of years
= $1,600,000 × (1 + 0.12)^2
= $2,007,040
We simply applied the future value formula to determine the amount of the payment
Hence, the amount of the payment is $2,007,040
The following information was taken from the 2017 financial statements of Planet Corporation:
Accounts receivable, January 1, 2017 $21,600
Accounts receivable, December 31, 2017 30,400
Sales on accounts and cash sales 438,000
Required:
Determine the cash collected from customers by Planet Corporation in 2017.
Answer:
$429,200
Explanation:
Considering the above information, cash collected from customers by Planet Corporation in 2017 would be;
= Accounts receivable January 1, 2017 + Sales on accounts and cash sales - Accounts receivables January 31, 2017
= $21,600 + $438,000 - $30,400
= $429,200
All changes save
1. Paid Furniture Depot $1300 payment in full. The two accounts that are affected are? (Check all that apply)
Debit cash $1300
Debit Furn Depot $1300
Credit cash $1300
Credit Furn depot $1300
Answer:
Debit Furniture Depot $1300
Credit cash $1300
Explanation:
Both furniture and cash are assets held by the company.
When an asset increases, in this case we purchased furniture, we must debit the asset account. On the other hand, when an asset decreases, we have less cash since we paid for the furniture, we must credit the account.
The accounts must always be balanced.
2. You have a loan outstanding. It requires making three annual payments of $1000 each at the end of the next three years. Your bank has offered to allow you to skip making the next two payments in lieu of making one large payment at the end of the loan’s term in three years. If the interest rate on the loan is 5%, what final payment will the bank re
Answer:
$1,157.63
Explanation:
We must determine the future value of your loan. I'm assuming that the bank charges compound interest.
future value = present value x (1 + interest rate)ⁿ
present value = $1,000interest rate = 5%n = time = 3 yearsfuture value = $1,000 x (1 + 5%)³ = $1,000 x 1.157625 = $1,157.625 ≈ $1,157.63
Avocado, Inc. purchased a $100,000 machine and deducted $70,000 of depreciation before selling it for $80,000 (after holding it for more than 1 year). How much gain does Avocado recognize
Answer:Avocado recognizes a gain of $50,000
Explanation:
Book Value of machine = Purchase Price - Depreciation
$ 100,000 - $70,000 = $30,000
Avocado sold the machine at = $80,000
Therefore, Gain/(loss) recognized = Selling Price - Book Value on date of sale
$80,000 - $30000 = $50,000
Avocado recognizes a gain of $50,000
Avocado recognizes a gain of $50,000
The calculation is as follows:
Book Value of machine = Purchase Price - Depreciation
= $ 100,000 - $70,000
= $30,000
And,
Avocado sold the machine at = $80,000
So,
Gain/(loss) recognized = Selling Price - Book Value on date of sale
= $80,000 - $30000
= $50,000
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The balanced scorecard can be made more effective by developing it at a detail level so that employees:
Answer: can see how their actions contribute to the success of the firm.
Explanation:
The balanced scorecard shows the results of the actions that a particular company has already taken. It is used by the managers to track of activities that are to be executed and to also monitor the consequences of the actions that were taken.
The balanced scorecard can be made more effective by developing it at a detail level so that employees can see how their actions contribute to the success of the firm.
The Nicor family is planning to purchase a new home 7 years from now. If they have $240,000 now, how much will be available at the time of purchase
Answer:
$530,400
Explanation:
The interest rate on the funds is 12%.
To find the answer, we use the future value of an investment formula:
FV = PV(1 +i)^n
Where FV = Future Value (the value we are looking for)
PV = Present value, in this case $240,000
i = the interest rate, in this case 12%
n = the number of compounding periods, in this case, 7 years.
Now, we plug the amounts into the formula:
FV = 240,000 (1 + 0.12)^7
FV = 240,000 (2.21)
FV = 530,400
So the value available for buying the new home after 7 years is $530,400
When you include the purchase price and the interest, how much did the video game end up costing you
Answer:
$75
Explanation:
When the purchase price and interest expense is added in the cost of video game the total cost would be $75. Initially the cost was $40. The interest expense of $10 is added in the price and purchase price of $25 is added in the initial price of video game.
For financial accounting purposes, what is the total amount of product costs incurred to make 20,250 units
Answer:
$411,075
Explanation:
Calculation for the total amount of product costs incurred to make 20,250 units
First step is to calculate Variable manufacturing cost per unit
Direct materials 7.70
Direct labor Variable 4.70
Variable manufacturing overhead 2.20
Variable manufacturing cost per unit $14.6
Second step is to calculate Total variable manufacturing cost
Variable manufacturing cost per unit$14.6
*Number of units produced 20,250 units
=Total variable manufacturing cost $295,650
($14.6*20,250)
Second step is to calculate Total fixed manufacturing cost
Fixed manufacturing overhead per unit $5.70
xNumber of units used to calculate fixed cost per unit 20,250 units
=Total fixed manufacturing cost $115,425
($5.70*20,250)
Now let calculate Total product cost
Total product cost = $295,650+$115,425
Total product cost=$411,075
Therefore the total amount of product costs incurred to make 20,250 units is $411,075
A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called
Answer:
Risk.
Explanation:
A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. Thus, this is called risk.
Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.
An effective and efficient way to mitigate risk in business is through the use of internal controls.
Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.
Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Direct Materials Used Direct Labor Used Factory Overhead Total Manufacturing Costs (1) $42,300 $64,000 $52,300 $ (2) $ $77,800 $144,000 $297,000 (3) $58,300 $ $115,000 $314,000
Answer and Explanation:
The computation of the missing amount of the three different situations is shown below:
As we know that
Total manufacturing costs = Direct materials + Direct labor + Factory overhead
Now
Direct materials Direct labor Factory overhead Total manufacturing
costs
$42,300 $64,000 $52,300 $158,600
$75,200 $77,800 $144,000 $297,000
$58,300 $140,700 $115,000 $314,000
Consider the following 4 bonds A B C D:(a) What is the percentage change in the price of each bond if its yields to maturity falls from 6% to 5%
Answer:
Answer is explained and solved in the explanation section below.
Explanation:
Note: This question is not complete and lacks necessary data to solve. But I have found a similar question on internet and will be using its's data to solve this question for the sake of concept and understanding.
Data Missing:
Bonds Coupon Rates Maturity
A 0% 15 years
B 0% 10 years
C 4% 15 years
D 8% 10 years
Par Value = $1000
Required = % age change in price of bonds, if yields to maturity falls from 6% to 5%.
New YTM = 5%
Old YTM = 6%
For Bond A:
Formula for Old Price = PV(6%, maturity, -annual coupon, -1000)
You need to put this function into Microsoft Excel to solve for old price.
Annual coupon formula = $1000 x coupon rate.
So,
We have,
Maturity = 15 years
Annual Coupon = $1000 x 0% = 0
Old price = PV(6%, maturity, -annual coupon, -1000)
Old price = PV(6%, 15, 0, -1000)
Old Price = $417.27
Now, for new price:
Formula for New Price = PV(5%, maturity, -annual coupon, -1000)
New Price = PV(5%, maturity, -annual coupon, -1000)
New Price = PV(5%, 15, 0, -1000)
New Price = $481.02
Now, we need to find the %age change of bond A.
%age change = (New Price - Old Price) divided by Old Price x 100
%age change = ( $481.02 - $417.27) / ($417.27) x 100
%age change = 15.28%
For bond B:
Old Price = PV(6%, maturity, -annual coupon, -1000)
Maturity = 10 years
Annual Coupon = $1000 x 0% = 0
Old Price = PV(6%, 10, 0, -1000)
Old Price = $558.39
For New Price:
New Price = PV(5%, maturity, -annual coupon, -1000)
New Price = PV(5%, 10, 0, -1000)
New Price = $613.91
%age change = (New Price - Old Price) divided by Old Price x 100
%age change = ( $613.91 - $558.39) / ($558.39) x 100
%age change = 9.94%
For Bond C:
Old Price = PV(6%, maturity, -annual coupon, -1000)
Maturity = 15 years
Annual Coupon = $1000 x 4% = 40
Old Price = PV(6%, 15, -40, -1000)
Old Price = $805.76
New Price = PV(5%, maturity, -annual coupon, -1000)
New Price = PV(5%, 15, -40, -1000)
New Price = $896.20
%age change = (New Price - Old Price) divided by Old Price x 100
%age change = ( $896.20 - $804.76) / ($805.76) x 100
%age change = 11.23%
For Bond D:
Old Price = PV(6%, maturity, -annual coupon, -1000)
Maturity = 10 years
Annual Coupon = $1000 x 8% = 80
Old Price = PV(6%, 10, -80, -1000)
Old Price = $1,147.20
New Price = PV(5%, maturity, -annual coupon, -1000)
New Price = PV(5%, 10, -80, -1000)
New Price = $1,231.65
%age change = (New Price - Old Price) divided by Old Price x 100
%age change = ( $1231.65 - $1147.20) / ($1147.20) x 100
%age change = 7.36%
Hence,
% age change of A = 15.28%
% age change of B = 9.94%
% age change of C = 11.23%
% age change of D = 7.36%
Suppose in 2018 the United States had consumption worth $13 trillion, investment worth $5 trillion, and government spending worth $3 trillion, with $2 trillion in exports and $3 trillion imports. What was its GDP per capita, assuming there were 400 million residents
Answer:
USD 50,000
Explanation:
The computation of the GDP per capita is given below:
GDP per capital = Real GDP ÷ Population
wherem
Real GDP is
= Consumption + investment + government spending + (exports - imports)
= $13 trillion + $5 trillion + $3 trillion + ($2 trillion - $3 trillion)
= $20 trillion
And, the population is 400 million
Now the GDP per capita is
= $20 trillion ÷ 400 million
= USD 50,000
Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston's expected cash flows from domestic business are $100,000 and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of won is $.0012. What are the expected dollar cash flows of Livingston Co.? Group of answer choices $100,000 $160,000 $200,000 $60,000
Answer:
$160,000
Explanation:
The computation of the expected dollar cash flows is given below:
Cash Flow arise from the domestic business is
= $100,000
And,
Cash flow from korean subsidiary is
= 50% × (100,000,000 × $0.0012)
= $60,000
Total Expected Cash Flows is
= $100,000 + $60,000
= $160,000
Jim usually goes to the movies with friends on Friday nights at the local movie theater. This week, the movie theater held over the movie, Anchorman 2, which Jim saw last week. Jim and his buddies decide to go bowling rather than attend the movie a second time. Which of the following best describes why Jim decided to go bowling this weekend?
a. Jim's utility function
b. Diminishing marginal returns
c. Profit maximization
d. Consumer budget constraint
Answer:
b. Diminishing marginal returns
Explanation:
According to the law of diminishing returns, as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.
Due to the fact that Jim has seen the movie once, he would not derive the same level of satisfaction from watching the movie a second time. The utility he would receive from watching the movie a second time would be less than when he watched it a first time.