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coldgirl [10]
1 year ago
6

determine the payback period for an investment. evaluate the acceptability of an investment project using the net present value

method. evaluate the acceptability of an investment project using the internal rate of return method. compute the simple rate of return for an investment.
Business
1 answer:
Fantom [35]1 year ago
4 0

An investment is an asset or object received with the aim of producing earnings or appreciation. Appreciation refers to a boom in the value of an asset over the years.

That in shape is loose cash and a guaranteed go-back on your funding. you could start with as low as 1% of each paycheck, though it is an excellent idea to intention for contributing at least as a great deal as your business enterprise match. for instance, a not-unusual matching association is 50% of the first 6% of the profits you contribute.

Investors are understandably cautious. record-high inflation and back-to-back interest rate increases have all triggered volatility. The S&P 500 briefly fell into a undergo market on May 20, again on June 13, and for a 3rd time in September. however, all of that also shouldn't mean sitting out of the marketplace.

Learn more about investment  here

brainly.com/question/25790997

#SPJ4

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Yakov, Ana, and Dina want to bake a cake. They are choosing among chocolate cake (C), vanilla cake (V), and red velvet cake (R).
vovangra [49]

Answer:

The specified preferences of Charles, Diana and Juanita. Charles and Juniata prefer chocolate over red velvet cake. Dina favors red velvet over chocolate.

So, when there is voting among red velvet and chocolate cake, the majority will select the Chocolate cake and among winner and vanilla majority will vote for Vanilla cake.

This is because Dina and Juanita favor vanilla over chocolate.

Among Chocolate and vanilla cake, the majority will elect for vanilla and among this winner and red velvet cake, the majority will choose for Red velvet cake.

This is because Diana and juanita favor vanilla over chocolate. So, vanilla cakes get majority elects. When there is voting among vanilla and red velvet , red vanilla acquire majority votes as charles and dina favor red velvet over vanilla.

The statement is False. The preferences are not transitive.

In the first situation chocolate is chosen to vanilla and red velvet is preferred to vanilla. Although, in the second situation, chocolate is favored to red velvet and vanilla is preferred to chocolate. Thus, the preferences do not exhibit transitivity.

8 0
2 years ago
_____ advertising is done by local merchants to encourage consumers to shop at a specific store, use a local service, or patroni
ololo11 [35]

Answer:

The correct answer is letter "D": Retail.

Explanation:

Retail advertising is developed by retailers to attract consumers to their local stores. This type of marketing may not be necessarily focused on the product features but how they are sold, meaning in bundles or at discount. It is the final merchandising made to products before they reach end-consumers.

8 0
2 years ago
Intro to Investing Math Quiz
olga nikolaevna [1]

As a result of having increased from a price of $55 to $85, we can say that the stock value increased by<u> 54.55%</u>

The stock was valued at $55 then it increased to $85. First thing to do is to check how much it increased by in dollar terms:

<em>= New price - old price </em>

= 85 - 55

= $30

In percentage terms, this is:

<em>= Increase/ Old price x 100%</em>

= 30 / 55 x 100%

= 54.55%

In conclusion, the stock value increased by 54.55%

<em />

<em>Find out more at brainly.com/question/10273187.</em>

4 0
2 years ago
On August 1, 2021, Limbaugh Communications issued $30 million of 10% nonconvertible bonds at 104. The bonds are due on July 31,
kodGreya [7K]

Answer:

Answers are journal entries, in the explanation box

<h2>Explanation:</h2><h3><u>Bonds:</u></h3>

Bonds is an interest bearing security or long term promissory note that a company represents while borrowing money with the interested investors.

<h2><u>Requirement 1:</u></h2><h2><u>Prepare the journal entries on August 1, 2021, to record:</u></h2><h3><u>Requirement 1(a):</u></h3>

The issuance of the bonds by Limbaugh (L)

<u>Solution:</u>

<u>Following is the journal entry for the issuance of bonds on August 1, 2021:</u>

<u>1st August 2021:</u>

Debit: Cash  $31,200,000 <u>(Working 1)</u>

Debit: Discount on bonds payable  $3,600,000 <u>(Working 3: Note 1)</u>

Credit: Bonds payable  $30,000,000

Credit: Equity - stock warrants $4,800,000 <u>(Working 2)</u>

<u>Working 1:</u>

Calculation of cash received:

Cash received = Face value × Issued rate

Cash received = $30,000,000 × 104%

Cash received = $31,200,000

<u></u>

<u>Working 2:</u>

<u>Calculation of amount of equity - stock warrants:</u>

Equity - stock warrants = Market price per warrant × number of warrants × number of bonds

Equity - stock warrants = $8 × 20 warrants × (30,000,000÷ 1,000 bonds)

Equity - stock warrants = $4,800,000

<u>Working 3: </u>

<u>Calculate the discount on bonds payable:</u>

Discount on bonds payable = Bonds payable + Equity stock warrants - Cash received

Discount on bonds payable = $30,000,000 + $4,800,000 - $31,200,000

Discount on bonds payable = $3,600,000

<u>Note 1:</u> Since discount on bonds issues is an expense, therefore, it is debited.

<h3><u>Requirement: 1 (b)</u></h3>

<u>Prepare the journal entries on August 1, 2021, to record the investment by Interstate (I).</u>

<u></u>

The following is the journal entry on August 1, 2021 to record the investment by Interstate (I) i.e. investor:

Debit: Investment in stock $960,000 (Working 4)

Debit: Investment in bonds $6,000,000 (Working 5)

Credit: Discount on bonds investment $720,000 (Working 7)

Credit: Cash $6,240,000 (Working 6)

<u>Working 4: </u>

<u>Calculate the investment in stock warrants:</u>

Investment in stock warrant = Equity - stock warrant × 20%

Investment in stock warrant = $4,800,000 × 20%

Investment in stock warrant  = $960,000

Working 5:

Calculate the amount of investment in bonds:

Investment in bonds = Face value × 20%

Investment in bonds = $30,000,000 × 20%

Investment in bonds = $6,000,000

<u>Working 6:</u>

Calculate the amount of cash paid:

Cash paid = Face value × issued rate × 20%

Cash paid = $30,000,000 × 104% × 20%

Cash paid = $6,240,000

<u>Working 7:</u>

<u>Calculate discount on bond investment:</u>

Discount on bond investment = Investment in stock warrants + Investment in bonds - Cash paid

Discount on bond investment = $960,000 + $6,000,000 - $6,240,000

Discount on bond investment = $720,000

<h2><u>Requirement 2:</u></h2><h2><u>Prepare the journal entries for both Limbaugh and Interstate in February 2032, to record the exercise of the warrants.</u></h2>

<h3><u>Requirement 2(a)</u></h3>

<u>Prepare the journal entries for Limbaugh in February 2032, to record the exercise of the warrants.</u>

Solution:

Following is the journal entry for exercise of warrants by <u>Limbaugh</u>:

Debit: Cash: $7,200,000 (Working 8)

Debit: Equity - stock warrants $960,000 (Working 9)

Credit: Common stock - equity $8,160,000

<u>Working 8: </u>

<u>Amount of cash received from the exercise:</u>

Amount of cash received from the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash received from the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash received from the exercise = $7,200,000

<u>Working 9:</u>

<u>Amount of equity - stock warrants from exercise:</u>

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

<u>Working 10:</u>

<u>Amount of common stock:</u>

Amount of common stock = Cash received + equity - stock warrants

Amount of common stock = $7,200,000 + $960,000

Amount of common stock = $8,160,000

<h3><u>Requirement 2(b)</u></h3>

<u>Prepare the journal entries for Interstate in February 2032, to record the exercise of the warrants.</u>

Solution:

The journal entry is as follows:

Debit: Investment in common stock: $8,160,000 (Working 13)

Credit: Investment in stock warrants: $960,000 (Working 11)

Credit: Cash: $7,200,000 (Working 12)

Working 11:

<u>Amount of equity - stock warrants from exercise:</u>

Equity - stock warrants = Total equity stock-warrants × 20%

Equity - stock warrants = $4,800,000 × 20%

Equity - stock warrants = $960,000

<u>Working 12:</u>

<u>Calculate the amount of cash paid for exercise:</u>

Amount of cash paid for the exercise = Exercise price per warrant × Number of warrants × Number of bonds × 20%

Amount of cash paid for the exercise = $60 × 20 warrants × ($30,000,000/$1,000) × 20%

Amount of cash paid for the exercise = $7,200,000

<u>Working 13:</u>

<u>Investment in common stock:</u>

<u>Amount of common stock:</u>

Investment in common stock = Cash paid + Investment in stock warrants

Investment in common stock = $7,200,000 + $960,000

Investment in common stock = $8,160,000

3 0
3 years ago
On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires a
Charra [1.4K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1) The amortization schedule is presented on the attachment below:

2).

Journal Entry

1 Jan Cash A/c      Dr. $147,750  

   To Notes payable A/c      $147,750

(Being the cash received is recorded)

31 Dec   Interest expense A/c    Dr. $10,342.50  

   Notes payable A/c      $33,277.50

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $8,013.08  

   Notes payable A/c      $33,606.93

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $5,520.59  

   Notes payable A/c      $38,099.41

 To Cash A/c    $43,620

(Being the annual payment of installment including interest is recorded)

31 Dec   Interest expense A/c    Dr. $2,853.83  

   Notes payable A/c      $40,766.17

 To Cash A/c    $43,620

(Being the annual payment of installment including interest and setting off liabilities is recorded)

3).

                                                            Bryson Company

                                                           Income Statement

Particular  Amount ($)

Revenue  -

Expenses  

Less - Interest expense 10,342.50

Less - Other expenses -

Net Income -  

4 0
3 years ago
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