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2 years ago

When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to?

1 answer:

7 0

When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.

This is further explained below.

Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.

In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.

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On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires

Murljashka [212]

Installment note from Campbell Bank.

1-Jan Note intt expense Decrease 31-Dec

Amortization of Installment Notes Carrying payment 7% in Carrying

Year ending December 31 amount cash paid notes payable amount

year 1 147,750 43,620 10343 33,278 114,473

year 2 114,473 43,620 8013 35,607 78,866

year 3 78866 43,620 5521 38,099 40,766

year 4 40766 43,620 2854 40,766 0

b) Journal Entries

Date Account titles & Explanations Debit Credit

year 1 1-Jan Cash 147,750

Notes payable 147,750

(to record issuance of note)

year 1 31-Dec Interest expense 10343

Notes payable 33,278

cash 43,620

(to record interest expense)

year 2 31-Dec Interest expense 8013

Notes payable 35,607

cash 43,620

(to record interest expense)

year 3 31-Dec Interest expense 5521

Notes payable 38,099

cash 43,620

(to record interest expense)

year 4 31-Dec Interest expense 2854

Notes payable 40,766

cash 43,620

(to record interest expense)

c) interest expense of 10,343 would be reported on the income statement of Bryson Company.

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6 0

2 years ago

An efficient market reflectsA) only historical information.B) only the information related to events that have already occurred.

Masja [62]

Answer:

The correct answer is option D.

Explanation:

The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.

Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.

4 0

3 years ago

Company Z has sales of $3,000,000, net income of $600,000, total assets of $1,000,000 and 800,000 shares of common stock outstan

Marizza181 [45]

Answer:

Price per share = $18.75

Explanation:

The P/E ratio is the measure of how much the investor's are willing to pay for every $1 earnings of the stock. The p/e ratio is calculated by dividing the price per share of the stock by the earnings per share. The formula for p/e ratio is as follows,

P/E ratio = Price per share / Earnings per share

Earnings per share = Net Income / Number of Common stock outstanding

Earnings per share = 600000 / 800000 = 0.75 per share

25 = Price per share / 0.75

25 * 0.75 = Price per share

Price per share = $18.75

3 0

2 years ago

Which of the following skills do employers in any field expect their employees to have?

Daniel [21]

Answer:

D. Ability to provide a healthy work environment

Explanation:

Every employee should provide a healthy work environment in the workplace. A healthy work environment is not limited to hygiene issues but extends to works ethics.

Employers will seek employees who are team players. The employees should be self-motivated, productive, happy, and should be acceptable by team members.

Poor hygiene and poor organization can have adverse effects on the entire team. It will affect communication and general wellness in the workplace.

A good team player will work in any field. The other options in the questions relate to specific careers.

6 0

3 years ago

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase

ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

= $45600 × 0.4

= $18240

7 0

2 years ago