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2 years ago

Which of the following statements is CORRECT?

Business

1 answer:

Semmy [17]2 years ago

5 0

Answer:

c.The potential exists for agency conflicts between stockholders and managers.

Explanation:

There is always the chance of conflicts between the stockholders and managers. As the former thinks that the management is not working properly and is just interest in their share of salary, and will not work on the aim of increasing stockholder's wealth.

Certainly the management also thinks that stockholder's just think for their benefit and not of the organization.

Accordingly this is the most correct statement of the provided statements.

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Last year the prices of beef at Damon’s Butcher Shop fluctuated. During the same 12 month period the amount of beef sold each qu

Talja [164]

Just by reading the excerpt we can say that between October and December prices for beef were high. As were Janurary and March because they only sold 10,000 pounds between the months of October and December. July and September was a good month yet they still did not sell as much as they did Between the months of April and June. So the answer is C) April and June

7 0

2 years ago

A local regulator has calculated the average cost of production for the public water utility. Theregulator has allowed an adjust

Varvara68 [4.7K]

Answer:

A. cost-plus regulation

Explanation:

When a local regulator calculates the average cost of production for the public water utility or any other service and allow an adjustment for the normal rate of profit the firm should expect to earn, and then set the price that consumers can be charged accordingly, this is known as cost-plus regulation.

It is usually carried out by the government.

8 0

2 years ago

Miles Company, a wholesaler, budgeted the following sales for the indicated months: June July August Sales on account $2700000 $

Alex Ar [27]

Answer:

$2475000

Explanation:

The computation of the cost of goods sold for the June month is shown below:

As it is given that total sales of June is $2,970,000

And, the marked up is cost plus 20%

So based on the above information, the cost of goods sold is

= $2,970,000 × 100 ÷ 120

= $2,475,000

Therefore, all the other information which is given is not relevant. Hence, ignored it

8 0

2 years ago

Vaughn Manufacturing has outstanding 596000 shares of $2 par common stock and 119000 shares of no-par 6% preferred stock with a

natima [27]

Answer: $107,900

Explanation:

Cumulative Preferred Shares refer to shares that a company has to pay dividends eventually. This means that if they are unable to pay for some years, they are to accrue that payment until they are able to.

There are 119000 shares of no-par 6% preferred stock with a stated value of $5.

That means preferred shares are liable to the following amount of dividends,

= 119,000 * 5 * 6%

= $35,700

Preferred Shares have not being paid for the past 2 years and need to be paid in the current year as well. That means 3 payments,

= 35,700 * 3

= $107,100

Preferred Shares are to be paid $107,100 out of the $215,000 with the rest going to common shares.

Amount going to Common Shares is,

= 215,000 - 107,100

= $107,900

Common Stockholders are to receive $107,900

7 0

2 years ago

BTR Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000

Marina CMI [18]

Answer: the yield to maturity and yield to call on BTR Co.'s bonds are:

YTM = 0.07507 (7.507%)

YTC = 0.06977 (6.977%)

Explanation:

Using yield to maturity formula below;

YTM = C + (fv - pv)/n ÷ (fv+pv) /2

C = coupon rate ; 9% of par value

9% of $1000

= 9/100 × 1000 = $90

fv = face value/par value = $1,000

pv = price value/market price = $1,160.35

n = number of years to maturity = 18

YTM = 90 + (1000 - 1160.35)/18 ÷ (1000+1160.35)/2

YTM = 90 + (-160.35)/18 ÷ (2160.35)/2

YTM = 90 + (-8.90833333)

÷ 1080.175

YTM = 81.0916667 ÷ 1080.175

YTM = 0.07507

= 7.507% (converted to percentage)

To calculate the yield to call, let s make use of the yield to call (YTC) formula below;

YTC = C + (cp - mp)/n ÷ (cp + mp)/2

C= coupon rate = $90

cp = call price = $1,060

mp = market price/price value = $1,160.35

n = number of years to call = 8

YTC = 90 + (1060-1160.35)/8 ÷ (1060+1160.35)/2

YTC = 90 + (-100.35)/8 ÷ (2220.35)/2

YTC = 90 - 12.54375 ÷ 1110.175

YTC = 77.45625 ÷ 1110.175

YTC = 0.06977

= 6.977% in percentage

5 0

2 years ago