Answer:
The correct answer is (C)
Explanation:
Generally the common stocks worth per share is normally a limited quantity, for example, $0.05 or $0.01 and it has no association with the market estimation of the price of stock. The standard worth is once in a while referred to as the regular stocks. The par value has no connection with the price of the stock.
Answer:
interest rate r = 6.78 %
Explanation:
given data
investment = $12,000
interest rate = 3.5 percent = 0.035
time = 5 year
interest rate = 7.9 percent = 0.079
time = next 15 year
to find out
What was your annual rate of return over the entire 20 years
solution
we get here interest rate as
interest rate r =
...................1
here t1 is time period for first 5 year and t2 is time i.e next 15 year and r1 and r2 is rate
now put here value we get
interest rate r =
interest rate r =
interest rate r = 1.0678 - 1
interest rate r = 0.0678
interest rate r = 6.78 %
Answer:
6,250 units; 7,000 units
Explanation:
Given that,
Fixed costs for proposal A = $50,000
Fixed costs for proposal B = $70,000
Variable cost for A = $12.00
Variable cost for B = $10.00
Revenue generated by each unit = $20.00
Let x be the number of units at break even point,
(a) Condition for break-even point in units:
Total cost = Total revenue
Fixed cost + Variable cost = (Number of units × Revenue generated by each unit)
50,000 + 12x = 20x
50,000 = 8x
6,250 = x
(b) Condition for break-even point in units:
Total cost = Total revenue
Fixed cost + Variable cost = (Number of units × Revenue generated by each unit)
70,000 + 10x = 20x
70,000 = 10x
7,000 = x
Using the high-low method, separate each mixed expense into variable and fixed elements. State the cost formula for each mixed expense. (Omit the "£" sign in your response.)
<span>Shipping Expense: </span>
<span>(86,200 - 45,900) / (5,100 - 2,000) = £13 variable cost per unit </span>
<span>86,200 - (13 x 5,100) = £19,900 fixed cost </span>
<span>£ Y = £19,900 + £13 X </span>
<span>Salaries and Commissions </span>
<span>(238,400 - 114,400) / (5,100 - 2,000) = £40 variable cost per unit </span>
<span>238,400 - (40 x 5,100) = £34,400 fixed cost </span>
<span>£ Y = £34,400 + £40 X </span>
<span>3. </span>
<span>Redo the company’s income statement at the 5,100-unit level of activity using the contribution format. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "£" sign in your response.) </span>
<span>Frankel Ltd. </span>
<span>Income Statement </span>
<span>For the Month Ended June 30 </span>
<span>Sales revenue 912900 </span>
<span>Variable expenses: </span>
<span>Cost of goods sold 346800 </span>
<span>Shipping expenses 5,100 x 13 = 66,300 </span>
<span>Commissions 5,100 x 40 = 204,000 </span>
<span>Contribution margin 295,800 </span>
<span>Fixed expenses: </span>
<span>Fixed shipping 19,900 </span>
<span>Insurance expenses 9000 </span>
<span>Depreciation expenses 42700 </span>
<span>Sales salaries 34,400 </span>
<span>Advertising expenses 69200 </span>
<span>Net operating Income 120600</span>
Answer:
The loss on early extinguishment is $8677.5
Explanation:
First of all,one needs to compute the carrying value of the bond as at the date of the call in order to determine the loss on early redemption.
carrying value =book value+interest expense-coupon payment
book value is $966,500
interest expense=$966,500*13%*6/12=$62,822.50
coupon payment=$1000,000*11%*6/12=$55,000
carrying value=$966,500+$62,822.50-$55,000=$ 974,322.50
Loss on redemption =call price -carrying value of the bond
call price is $983,000
loss on early redemption=$983,000-$974,322.50 =$8,677.5