Answer:
The statement is false
Explanation:
Determining the profitability depends on market power. At a higher market power, the level of profitability will be high.
Conversely, a company operating in a system where its market power is low which results into inability to compete with other companies will cause a low probability.
Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a(n):
Answer:
Reversionary interest
Explanation:
If Larry Jones gifts land to a school district, but the deed states "for so long as the land is used for a school." Jones owns a reversionary interest.
A reversionary interest can be defined as a property law (deed) which states that when a property such as a land transfer is used on a clause; “for so long as” or “on condition that."
Hence, once the interest of the benefactor comes to an end, the property reverts back to its original owner (grantor). It also gives the grantor's next of kin, successor or heir the power or right to take the property back in the future if promises are broken or the agreement comes to an end.
This ultimately implies that, if a property stated in the deed is not used or used, for certain purposes.
In this scenario, Larry owns a reversionary interest because he gifts a land to the school district, but in the deed he stated "for so long as the land is used for a school."
The cost structure of two firms competing in the same industry is represented by the following cost formulas: Company X = $2,276,000 + $50/ unit; Company Z = $1,052,000 + $98/unit. The selling price is $145 per unit for both companies. Required: 1. Calculate the indifference point between the two cost structures, that is, the amount of unit sales that produce exactly the same operating income for Company X and Company Z.
Answer:
Indifference point= 25,500
Explanation:
Giving the following information:
Company X = $2,276,000 + $50/ unit
Company Z = $1,052,000 + $98/unit
We need to find the indifference point where the two companies provide the same total cost.
We need to equal both cost equations:
2,276,000 + 50x = 1,052,000 + 98x
1,224,000 = 48x
25,500= x
x= number of units
To prove:
Company X = $2,276,000 + $50*25,500= $3,551,000
Company Z = $1,052,000 + $98*25,500= $3,551,000
Production and Purchases Budgets At the beginning of October, Comfy Cushions had 2,600 cushions and 15,500 pounds of raw materials on hand. Budgeted sales for the next three months are: Month Sales October 13,000 cushions November 15,000 cushions December 18,000 cushions Comfy Cushions wants to have sufficient raw materials on hand at the end of each month to meet 25 percent of the following month's production requirements and sufficient cushions on hand at the end of each month to meet 20 percent of the following month's budgeted sales. Five pounds of raw materials, at a standard cost of $0.90 per pound, are required to produce each cushion. Required a. Prepare a production budget for October and November. Do not use a negative sign with your answers.
Answer:
Production budget for October and November
October November
cushions cushions
Budgeted Sales 13,000 15,000
Add Budgeted Closing Inventory 3,000 3,600
Total Production needed 16,000 18,600
Less Budgeted Opening Inventory (2,600) (3,000)
Production Budget 13,400 15,600
Explanation:
A Production Budget shows the quantities of finished goods that must be produced to meet expected sales plus any increase in inventory levels that might be required.
Gaines Corporation invested $126,000 to acquire 26 comma 000 shares of Owens Technologies, Inc. on March 1, 2018. On July 2, 2019, Owens pays a cash dividend of $ 3.25 per share. The investment is classified as equity securities with no significant influence. Which of the following is the correct journal entry to record the transaction on July 2, 2019?
a. Cash 78,000
Equity Investments 78,000
b. Cash 78,000
Retained Equipment 78,000
c. Equity Investments 78,000
Cash 78,000
d. Cash 78,000
Dividend Revune 78,000
Answer:
Cash Dr, $84,500
Dividend revenue $84,500
Explanation:
The Journal entry is shown below:-
Cash Dr, $84,500 (26,000 × $3.25)
To Dividend revenue $84,500
(Being dividend is recorded)
To record the dividend, we debited the cash as it increased the assets and we credited the dividend revenue as it also increased the revenue
Therefore the above entry is the right and the same is not given in the option.
Q3) At an output level of 45,000 units, you calculate that the degree of operating leverage is 2.79. If output rises to 48,000 units, what will the percentage change in operating cash flow be
Answer: 18.6%
Explanation:
Degree of operating leverage = % change in Operating cash flow / % change in output
% change in Output
= [tex]\frac{48,000 - 45,000}{45,000}[/tex]
= 6.7%
Degree of operating leverage = % change in Operating cash flow / % change in output
2.79 = % change in Operating cash flow/ 6.7%
% change in Operating cash flow = 2.79 * 6.7%
% change in Operating cash flow = 18.6%
Sales 22160 units Cash, beginning balance $34000 Selling and administrative (of which depreciation, $5,000) $53000 Required minimum cash balance $66480 If necessary, the company will borrow cash from a bank on the first day of March. Assume that the borrowing can be made in any (exact) amount, but bears interest at 3% per month. The March interest will be paid during subsequent months. Q: What is the closest amount of cash that must be borrowed on March 1 to cover all cash disbursements and to obtain the desired March 31 cash balance
Answer:
Loan taken: 58,320
Explanation:
We add up the beginning cash with the receipts and subtract the expenses.
Then, we compare agaisnt the mnimum required balance
Beginning Cash 34,000
Cash Receipts
Sales 22,160
Total cash form operations: 56,160
Cash disbursements
S&A expense (w/o depreciations) 48,000
Ending Cash from operations 8,160
Minimum Balance: 66,480
Loan taken: 58,320
Smiling Elephant, Inc., has an issue of preferred stock outstanding that pays a $6.10 dividend every year, in perpetuity. If this issue currently sells for $80.65 per share, what is the required return?
Answer:
7.56%
Explanation:
Calculation for the required return for Smiling Elephant
Using this formula
Required return =D/P0
Where,
D=$6.10
P0=$80.65
Let plug in the formula
Required return =$6.10/$80.65
Required return =0.0756×100
Required return =7.56%
Therefore the Required return for Smiling Elephant Inc will be 7.56%
Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn, joint tenants with right of survivorship." Gordon predeceases Fawn when the real estate is worth $2,900,000. Gordon and Fawn are brother and sister.
What are the gift and estate tax consequences?
If an amount is zero, enter "0".
a. Gordon made a gift when the real estate was purchased of $_____ to Fawn.
b. Gordon's estate must include $______ as to the property.
c. How would the estate tax consequences change if it was Fawn (not Gordon) who died?
Fawn's estate would include $___0___ as to the property.
Answer:
a. Gordon made a gift when the real estate was purchased of $450,000 to Fawn.
Since Gordon gave 50% of the real estate to his sister as a gift when he purchased it, the gift must be valued at the time it happened ($900,000 x 50%)
b. Gordon's estate must include $2,900,000 as to the property.
Gordon purchased all the real estate by himself, so his estate must include the value of the whole property.
c. How would the estate tax consequences change if it was Fawn (not Gordon) who died?
Fawn's estate would include $0 as to the property.
Since Fawn didn't buy the property, her estate cannot include any amount of it.
Which of the following is not required to prove innocent representation?
A. The fact asserted was material.
B. The fact asserted constituted a mistake of law.
C. The complaining party's reliance was reasonable.
D. The complaining party entered the contract because of his reliance on the fact asserted.
Answer:
I think it is C
hope I'm right
Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $36,000 Direct labor 8,640 Total $44,640 The standard materials price is $0.6 per pound. The standard direct labor rate is $9 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $33,400 Actual direct labor 8,000 Total $41,400 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 21,600 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance $ 2.5 Favorable Direct labor time variance
Answer:
$1,000 unfavorable and $224 unfavorable
Explanation:
The computation of the direct material quantity variance and the direct labor time variance is shown below:
For direct material quantity variance:
= (Standard direct materials ÷ bugeted toy × actually produced) - actual direct materials
= ($36,000 ÷ $24,000 × 21,600 units) - $33,400
= $32,400 - $33,400
= $1,000 unfavorable
For direct labor time variance
= (Standard direct labor ÷ bugeted toy × actually produced) - actual direct labor
= ($8,640 ÷ $24,000 × 21,600 units) - $8,000
= $7,776 - $8,000
= $224 unfavorable
Massena Corporation reported the following data for the month of February:
Inventories: Beginning Ending
Raw materials (Direct and Indirect) $40000 $24000
Work in process $23000 $17000
Finished goods $50000 $72000
Additional information:
Raw materials purchases $63000
Direct labor cost $73700
Manufacturing overhead $55000
cost actually incurred
Raw materials included in
manufacturing overhead costs
incurred as indirect materials $5000
Manufacturing overhead cost
applied to Work in Process $48000
The adjusted cost of goods sold that appears on the income statement for February is:____
$=
Answer:
$186,700
Explanation:
The computation of adjusted cost of goods sold is shown below:-
Before that we need to do the following calculations
Raw material consumed = Beginning raw material + Raw material purchases - Ending raw materials - Raw materials included in manufacturing overhead costs as indirect materials
= $40,000 + $63,000 - $24,000 - $5,000
= $74,000
Total manufacturing cost = Beginning work in progress + Raw material consumed + Direct labor cost + Manufacturing overhead cost - Ending work in progress
= $23,000 + $74,000 + $73,700 + $48,000 - $17,000
= $201,700
Unadjusted Cost of goods sold = Raw materials + Total manufacturing cost - Ending finished goods
= $50,000 + $201,700 - $72,000
= $179,700
Adjusted COGS = Unadjusted Cost of goods sold + Underapplied overhead
= $179,700 + ($55,000 - $48,000)
= $179,700 + $7,000
= $186,700
Classify each of the following based on the macroeconomic definitions of saving and investment.
a. Saving Investment Kate purchases stock in Pherk, a pharmaceutical company.
b. Hubert purchases a new condominium in Houston.
c. Clancy purchases a certificate of deposit at his bank.
d. Eileen borrows money to build a new lab for her engineering firm.
Answer:
a. Savings
b. Investment
c. Savings
d. Investment
Explanation:
Remember,
In macroeconomics, we often see Investments as purchases made with the aim of producing more goods or more wealth in the future. The examples are;
- Kate purchases stock in Pherk, a pharmaceutical company.
-Hubert purchases a new condominium in Houston.
While, Savings refers to the extra money a households have left after paying all their other expenses. Examples here are:
- Clancy purchases a certificate of deposit at his bank.
- Eileen borrows money to build a new lab for her engineering firm.
Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.40 pounds $ 2.60 per pound $ 19.24 Direct labor 0.45 hours $ 8.00 per hour $ 3.60 During the most recent month, the following activity was recorded: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 575 hours of direct labor time were recorded at a total labor cost of $5,750. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month.
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material:
Standard= 7.40 pounds $ 2.60 per pound
Actual= 12,100 pounds of material were purchased for $2.50 per pound.
Direct labor:
Standard= 0.45 hours $ 8.00 per hour
Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750
Units produced= 1,500
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.6 - 2.5)*12,100
Direct material price variance= $1,210 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
standard quantity= 1,500*7.4= 11,100
Direct material quantity variance= (11,100 - 12,100)*2.6
Direct material quantity variance= $2,600 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 1,500*0.45= 675
Direct labor time (efficiency) variance= (675 - 575)*8
Direct labor time (efficiency) variance= $800 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 5,750/575= $10
Direct labor rate variance= (8 - 10)*575
Direct labor rate variance= $1,150 unfavorable
assuming it is stored safely how long after It was prepared can refrigerated food be sold or served 1-7 days b-10 days c-14 days d-20 days
Answer:
1-7 days
Explanation:
But, ideally 4 days should be the maximum for prepared food to be refrigerated before it is sold or served.
Leaving food refrigerated for a long time makes it to lose its nutrients. Some foods like potatoes, meat, eggs, chicken, etc. can become harmful or poisonous, especially when you reheat them before eating. That is why it is right to adhere to proper routines for refrigerating food and also preparing and serving the food. Some healthy food are better eaten immediately after their preparation.
Identify each of the following items as either a capital expenditure (C), an immediate expense (E), or neither (N):
1. Paid property taxes of $75,000 for the first year the new building is occupied.
2. Paid interest on construction note for new plant building, $550,000
3. Repaired plumbing in main plant, paying $270,000 cash.
4. Purchased equipment for new manufacturing plant, $6,000,000; financed with long-term nc
5. Paid dividends of $40,000.
6. Purchased a computer and peripheral equipment for $29,000 cash.
7. Paved a parking lot on leased property for $300,000.
8. Paid $90,000 in cash for installation of equipment in (4).
9. Paid $148,000 to tear down old building on new plant site.
10. Paid $31 ,000 maintenance on equipment in (4) during its first year of use.
Answer:
Options 2, 4, 6, 7, 8, and 9 are capital expenditure.
Options 1, 3, and 10 are the immediate expenses.
Option 5 is Neither.
Explanation:
Capital expenditure is those expenditures that are incurred to maintain the fixed assets. Thus Options 2, 4, 6, 7, 8, and 9 are capital expenditure. While the expenses that are compulsory and immediate in nature are called the immediate expenses. This means if the equipment requires repairing then it will fall in the category of immediate expense because without repairing it won't work. Therefore, a property tax of $75000, repair of the main plant, and maintenance for equipment are immediate expenses.
On December 1, 2018, ABC signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2019. ABC records the appropriate adjusting entry for the note on December 31, 2018. What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2019?
Answer:
$315,000 will be needed to pay back
Explanation:
When the note payable is signed, the entries would be as follows :
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable is
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :
Note Payable $315,000 (debit)
Cash $315,000 (credit)
The amount of cash should be $315,000 will be needed to payback.
Calculation of the amount of the cash needed:At the time When the note payable is signed, the entries should be
Cash $300,000 (debit)
Note Payable $300,000 (credit)
Interest that accrues over the period of the over the note receivable should be
Interest expense $15,000 (debit)
Note Payable $15,000 (credit)
here,
Interest expense = $300,000 × 5%
= $15,000
On June 1, 2019, the Note Payable plus Interest that needs to be paid should be
Note Payable $315,000 (debit)
Cash $315,000 (credit)
learn more about cash here: https://brainly.com/question/2055753
: Imagine that Canada, the US, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for the flow of trade and investment between all three countries
Answer:
The exchange rate would benefit the U.S. and Canada more, that it would benefit Mexico.
This is because the Mexican currency: Mexican Peso, is devalued when compared to the U.S. Dollar and the Canadian Dollar. This means that Mexican exports are comparatively cheaper than American or Canadian exports, causing a great growth of Mexican manufacturing in recent decades.
In a fixed exchange rate system, Mexico would lose this competitive advantage. It would still have lower labor costs, but the amount of manufacturing that would move from the U.S. and Canada to Mexico would probably be less.
On July 1 Olive Co. paid $7,500 cash for management services to be performed over a two-year period. Olive follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment. On July 1 Olive should record:
Answer:
The journal entry to record this should be:;
July 1, Year 202x, cash received as deferred revenue
Dr Cash 7,500
Cr Deferred revenue 7,500
Explanation:
Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them.
In this case, the adjusting entry for accrued revenue on December 31 should be:
December 31, year 202x, accrued revenue
Dr Deferred revenue 1,875
Cr Service revenue 1,875
The American Red Cross and the American Medical Association are nonprofit businesses. This is because they: A. plan to make a profit by selling services to other countries. B. exist to benefit a cause but not to make a profit. C. share profits with top management but not with workers. D. sell services directly to customers to make a higher profit.
Answer:B exist to benefit a cause but not to make a profit.
Explanation:
They are to provide services which are useful to the members of the society at large. They exist to promote the interest of members of the public which are social in nature. With a view to ensure the smooth running of the organisation some individuals are elected to run the organisation in the position of chairman, secretary, and treasurer. They do prepare receipt and payment account which is similar to cash account while some do prepare income and expenditure account which is similar to profit and loss account.
Parton and Sons is a law firm that uses activity-based costing. Classify these activities as value-added or non-value-added:
a. Taking appointments
b. Reception
c. Meeting with clients
d. Bookkeeping
e. Court time
f. Meeting with opposing attorneys
g. Billing
h. Advertising
Answer:
The answer is:
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
Explanation:
In activity-based costing, Non-value-added activities are activities that add costs to ones product without enhancing the value while value-added is a cost that enhance the quality of a product or service.
A - Non-value-added
B - Non-value-added
C- Value-added
D- Non-value-added
E - Value-added
F - Value-added
G - Non-value-added
H- Non-value-added
The country of Morson has decided to privatize the state-owned cable television company. How can the country help this newly privatized industry succeed
Answer:
Government Support
Explanation:
Privatization is better for a country. It minimizes the monopoly and encourages healthy competition. Increased competition in the business world is good. There can be variety of services available to the consumers. Government should support privatization by introducing schemes of interest free loan for investors. There will be large number of firms that might want to enter business world but the money is not available to them for startup.
Many companies secure financing from various sources with various payback periods. Not all funding sources are the same, and in fact, some can come with a pretty high cost to the firm. These costs could include high interest rates, long payback periods, and increased ownership in the firm which could result in lost control.
Please analyze the funding options listed, and determine if the option is usually a short-term or long-term strategy.
a. Line of credit
b. Commercial paper
c. Trade credit Bank loan of 10 months
d. Bond
e. Stock
f. Bank loan of 20 months
Answer:
a. Line of credit - Long-term strategy
A line of credit is a long-term strategy because businesses obtain lines of credit for their use over long periods of time. The particular characteristic is that a line of credit is only used when the business decides to do so, so it works almost like a credit card.
b. Commercial paper - Short-term strategy
Commercial paper is a short-term debt that is issued by firms when they have problems to pay operating expenses. They are unsecured, and pay a specific amount of interest.
c. Trade credit Bank loan of 10 months - Short-term strategy
In financial accounting, loans that last for less than a year are categorized as short-term liabilities, therefore, a trade credit bank loan of 10 months is a short-term strategy.
d. Bond - Long-term strategy
While some bonds are issued for the short-term, the majority of them are issued for the long-term, with some of them lasting 10 years or more.
e. Stock - Long-term strategy
Buying or issuing stock is also a long-term strategy, specially because the dividend of the stock is only paid out once every year, unlike other debt instruments that pay interest immediately.
f. Bank loan of 20 months - Long-term strategy
A bank loan of more than 1 years is considered a long-term liability in financial accounting, therefore, a bank loan of 20 months is part of a long-term strategy.
Analyzing the given funding options and placing them in their right categories would be:
A. Line of credit - Long-term strategy B. Commercial paper - Short-term strategy C. Trade credit Bank loan of 10 months - Short-term strategy D. Bond - Long-term strategy E. Stock - Long-term strategy F. Bank loan of 20 months - Long-term strategyA long term strategy is one which financial institutions use to secure their assets for the foreseeable future while a short term strategy is used for short term gains on stocks and finances.
With this in mind, we can see that there are different funding options which are short or long term as the case may be, which depends on the amount of profit which the business wants to accrue.
Read more here:
https://brainly.com/question/24349475
During the current month, Grey Company transferred 60,000 units of finished production out of the Mixing Department at a cost of $6 each. They were transferred to finished goods. The journal entry to record the transfer would be which of the following?
a. Finished Goods 360,000
Work in Process 360,000
b. Finished Goods 360,000
Cost of Goods Sold 360,000
c. Work in Process 600,000
Finished Goods 600,000
d. Work in Process 600,000
Cost of Goods Sold 600,000
Answer:
a. Finished Goods 360,000
Work in Process 360,000
Explanation:
During transfer, de-recognize the cost of finished and transferred production from the Work In Process Account of the Mixing Department (Credit) and accumulate the cost in the Finished Goods Account (Debit).
When the units are finally sold, Cost of Goods Sold is recognized (Debit) and the Finished Goods Account is De-recognized (Credit).
Bendel Incorporated has an operating leverage of 7.3. If the company's sales volume increases by 3%, its net operating income should increase by about:
Answer:
21.9%
Explanation:
Given that
Operating leverage = 7.3
Increase in sales = 3%
According to the given situation, the computation of net operating income is shown below:-
Increase in operating income = Operating leverage × Increase in sales
= 7.3 × 3 %
= 21.9%
Therefore for computing the increase in operating income we simply applied the above formula.
In the month of November, Carla Vista Co. Inc. wrote checks in the amount of $9,565. In December, checks in the amount of $11,465 were written. In November, $8,825 of these checks were presented to the bank for payment, and $10,285 in December. What is the amount of outstanding checks at the end of November? At the end of December?
Checks written in November $9,750
Less: Checks paid by bank in November $8,800
Checks outstanding at the end of November $950
Add: Checks written in December $11,762
Less: Checks paid by bank in December 10,889
Checks outstanding at the end of December $1,823
hope this helps!
- a random freshman
Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.
a. Fixed
b. Indirect
Answer:
Both :
a. Fixed and,
b. Indirect
Explanation:
The depreciation expense on production machinery form part of the product or service cost.
The cost however, can not be traced to the product or service that is why it is an Indirect cost as opposed to the direct costs which can be traced directly on the product or service.
Straight line method charges a fixed amount of depreciation thus the depreciation is a fixed charge.
Garcia Company issues 10%, 15-year bonds with a par value of $230,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 1/4. The effective interest method is used to allocate interest expense.
1. Using the implied selling price of 117 1/4, what are the issuer's cash proceeds from issuance of these bonds.
2. What total amount of bond interest expense will be recognized over the life of these bonds?
3. What amount of bond interest expense is recorded on the first interest payment date?
Answer:
A.$269,675
B.$305,325
C.$10,787
Explanation:
Requirement A Cash proceeds
Cash proceeds can find out by multiplying par value with the selling price
Cash proceeds = Par Value x Selling price
Cash proceeds = $230,000 x 117.25%
Cash proceeds = $269,675
Requirement B Interest Expense
Bond interest expense =Total repayment -Amount borrowed(REQ.A)
Bond interest expense = $575,000(w) - $269,675
Bond interest expense = $305,325
Workings
Semi-annual interest expense = $230,000 x 10% x 6/12
Semi-annual interest expense = $11,500
Total payment would be 30 for 15 years
Total payment = $11,500 x 30
Total payment = $345,000
Total repayment = Par value + $345,000
Total repayment = $230,000 + $345,000
Total repayment = $575,000
Requirement C Bond interest expense on the first interest payment date
Bond interest Expense = $269,675(REQ.A) x 8% x 6/12
Bond interest Expense = $10,787
A firm contemplating foreign expansion must make three basic decisions: which markets to enter, when to enter those markets, and on what scale. Once a firm decides to enter a foreign market, the question arises as to the best mode of entry. Firms can use six different modes to enter foreign markets: exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm, or setting up a new wholly owned subsidiary in the host country. Each entry mode has advantages and disadvantages.
Read each advantage and disadvantage listed below and then match it to corresponding mode.
a. Development cost and operational Strategy
b. Costs, risks, and profits
c. Manufacturing and transportation costs
d. Host country and controls
e. FDI and foreign country
f. Risks and capital investment
1. Exporting
2. Turnkey Contracts
3. Licensing
4. Franchising
5. Joint Ventures
6. Who Ply-own
7. Subsidiaries
Answer:
1. Exporting - c. Manufacturing and transportation costs
2. Turnkey Contracts e. FDI and foreign country
3. Licensing f. Risk and Capital investment
4. Franchising d. Host country and controls
5. Joint Venture - a. Development cost and Operational Strategy
6. Who Ply-own - Risks and profits
7. Subsidiaries - b. Costs, risks and profits
Explanation:
Exporting is beneficial for a country as it brings money to the country but it has many disadvantages. There is high manufacturing and transportation cost. There can be trade barriers in some countries which will restrict the trade benefit. Owing a subsidiary is beneficial when it is profitable but when subsidiary incurs loss the parent has to bear it. It involves high risk investment.
The advantage and disadvantage listed below and their matches in their corresponding mode.
Exporting- Manufacturing and transportation costs Turnkey Contracts- FDI and foreign country Licensing - Risk and Capital investment Franchising- Host country and controls Joint Venture - Development cost and Operational Strategy Who Ply-own (wholly owned subsidiary)- Risks and profits Subsidiaries - Costs, risks and profitsFirms can often use different modes to enter foreign markets. They can use exporting, turnkey projects, licensing, franchising, establishing joint ventures with a host-country firm etc.
Turnkey project : the contractor is in good terms and agrees to handle every detail of the project for a foreign client.
Licensing agreement : licensor often gives the rights to intangible property to another entity for time period under a fee. Franchising is involve longer-term commitments than licensing.
Learn more from
https://brainly.com/question/15188713
The rate of return on the common stock of Lancaster Woolens is expected to be 18 percent in a boom economy, 8 percent in a normal economy, and only 2 percent in a recessionary economy. The probabilities of these economic states are 12 percent for a boom and 10 percent for a recession. What is the variance of the returns on this common stock
Answer:
Variance of the return on this common stock is 0.15%
Explanation:
Note: See the attached excel file for the calculation of the variance of the returns on this common stock.
Note that the probability of a normal economy can be obtained as follows:
Probability of normal economy = 100% - Probability of a boom - Probability of a recession = 100% - 12% - 10% = 78%
These probabilities are used in the attached excel file.
A buyer and a seller enter into a real estate sales contract. Under the contract's terms, the buyer will pay the seller $500 a month for 10 years. The seller will continue to hold legal title, while the buyer will live in the home and pay all real estate taxes, insurance premiums, and regular upkeep costs. What kind of contract do the buyer and seller have
Answer: Land Sales Contract
Explanation:
Land Sales contract are a way to buy a property for people who would otherwise be unable to buy one because they were unable to get a mortgage or are running low in funds.
It works by the buyer paying the seller a certain amount of money for a period of time according to an agreement. During this period of payment, the seller continues to hold the legal rights to the property and then passes it to the buyer when they are finished paying. In this scenario therefore, the seller effectively plays the role of a mortgage bank.