Why should people be cautious when considering a loan with a variable

The Ford Motor Corporation and Toyota Motor Corporation planned to join forces in 2011 to produce a hybrid truck that would meet

Yuliya22 [10]

Answer: joint venture

Explanation:

The best structure fmtahts ideal for the collaboration between these two automotive giants will be a joint venture.

A joint venture is a form of business whereby two or more businesses come together and join their resources together so that they'll achieve a common goal.

When Ford and Toyota pool their resources together, this will bring about access to new markets, increased capacity, access to new knowledge, greater resources, and the improvement in income.

4 0

3 years ago

If the exchange rate for buying Japanese Yen is 12 Yens per Dollar, how many

GuDViN [60]

Answer:

2,400 Yens

Explanation:

exchange rate for buying Japanese Yen is 12 Yens per Dollar

1 dollar : 12 Yens

how many Yens do you need to buy 200 Dollars for?

Let

x = number of Yens needed

200 dollars : x Yens

Equate the ratios to find x

1 dollar : 12 Yens = 200 dollars : x Yens

1/12 = 200/x

Cross product

1 * x = 12 * 200

x = 2,400

x = number of Yens needed = 2,400 Yens

7 0

3 years ago

Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances mi

coldgirl [10]

Answer:

Jones may decide that the equity method would not be appropriate to account for the investment when Jones Company does not have significant influences over the management/operation of Sandridge Company.

Although an investors holding from 25% of investee is very much likely to have significant influences on the investee, this may not be true all over the times. For Jones, to prove that it does not have significant influences over Sandridge, there may be some following evidences:

+ Jones and Sandridge sign an agreement that Jones surrenders significant rights as a shareholder;

+ There is/are investor(s)/group(s) of investors who has more voting right than Jones and whose visionary/mission for Sandridge is opposite to Jones's.

+ Sandridge tries to reject Jones' influences on its management by seeking lawsuit or by successfully prevent representatives from Jones on its Board of Directors.

Explanation:

8 0

3 years ago

As one of the seven habits of strong ethical leaders,________ is “the glue that holds ethical concepts together.” this trait can

Furkat [3]

The passion to do right

6 0

3 years ago

Serotta Corporation is planning to issue bonds with a face value of $450,000 and a coupon rate of 16 percent. The bonds mature i

Brrunno [24]

Answer:

1. Dr Cash 481,588.61

Cr Bonds payable 450,000

Cr Premium on bonds payable 31,588.61

2. March 31

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

Cr Cash 18,000

June 30

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

Cr Cash 18,000

September 30

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

Cr Cash 18,000

December 31

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

Cr Cash 18,000

3. carrying value = $466,726.94

Explanation:

face value = $450,000

maturity = 2 years x 4 = 8 periods

coupon rate = 16% / 4 = 4%

coupon = $18,000

YTM = 12% / 4 = 3%

using a financial calculator, the PV of the bonds = $481,588.61

amortization first coupon = ($481,588.61 x 3%) - $18,000 = $3,552.34

Dr Interest expense 14,447.66

Dr Premium on bonds payable 3,552.34

Cr Cash 18,000

amortization second coupon = ($478,036.27 x 3%) - $18,000 = $3,658.91

Dr Interest expense 14,341.09

Dr Premium on bonds payable 3,658.91

Cr Cash 18,000

amortization third coupon = ($474,377.36 x 3%) - $18,000 = $3,768.68

Dr Interest expense 14,231.32

Dr Premium on bonds payable 3,768.68

Cr Cash 18,000

amortization fourth coupon = ($470,608.68 x 3%) - $18,000 = $3,881.74

Dr Interest expense 14,118.26

Dr Premium on bonds payable 3,881.74

Cr Cash 18,000

5 0

3 years ago