Answer:
The price of the preferred stock today is $103.27
Explanation:
The preferred stock pays a constant dividend after equal intervals of time and has an indefinite maturity. Thus, a preferred stock is just like a perpetuity. The value or price of a perpetuity can be calculated using the following formula.
The price or a perpetuity:
P = Cash Flow / r
As the cash flow in this case is dividends so we will use dividends in place of cash flow and divide by the required rate of return.
P = 4.74 / 0.0459
P = $103.267 rounded off to $103.27
He should stay open because shutting down would be more expensive as descibed below
<u>Explanation:</u>
It should be OPTION C-stay open because shutting down would be more expensive.
It cannot be option one. Shut down point is that where the variable cost is equal to the total revenue. But here the total revenue is more than the variable cost.
It cannot be option two. If the firm exit the industry, there will not be any revenue and variable cost but the total fixed cost will a loss. Hence, the firm should continue to produce.
It cannot be option four. There is not at all any economic profit. Rather there is an economic loss of 60000.
Hence, the answer will be option three. He should stay open because shutting down would be more expensive.
Answer:
$4,000
Explanation:
The computation of interest expense to be recognized on July 1 is shown below:-
Here the interest is paid in semi-annually,
so, the interest rate per period= 10% ÷ 2 = 5%
and the number of periods = 5 × 2 = 10
Bond premium = Five year bonds - Issued amount
= $92,000 - $88,000
= $4,000
Bond premium amortization per period = Bond premium ÷ Number of periods
= $4,000 ÷ 10
= $400
Interest expense to be recognized on July 1 = Issued amount × Interest rate per period) - Bond premium amortization per period
= ($88,000 × 5%) - $400
= $4,000
Answer:
Given:
Demand = 15,000
Initial investment = $256,000
Variable cost = $15
Selling price = $30
Here, we'll first compute break-even quantity :
i.e. 
From above we can state that the demand is less than break-even quantity i.e. in this case the organization will not be able to recover the investment made.
<u><em>Therefore, the company's total margin will be less than its investment. </em></u>
<u><em>The correct option is (b)</em></u>
Earnings Management is the purposeful control of an organization's income through the abuse of bookkeeping strategies to pick up an advantage for the organization to the detriment of the individuals who depend on the monetary data. It is tangibly deceptive and distorts the money related soundness of the organization.
Earnings Management isn't worthy under any situation where the goal is to bamboozle clients of the money related proclamations. Under the Securities Exchange Act of 1934, anybody, regardless of whether straightforwardly or by implication, who distorts data regardless of the possibility that insignificant, is liable to an assortment of solutions for amending the circumstance per government securities laws. In the hazy area of GAAP, organizations can utilize the decision of devaluation strategies or stock valuation techniques and any adjustments in those strategies as long as they are unveiled. Any strategy changes in bookkeeping techniques are adequate as long as the monetary explanations are rehashed to demonstrate the impact of the change. The motivation behind a review is to give a sentiment to clients of money related articulations that the monetary proclamations are exhibited decently.
