Answer: The correct answer is "c. is a seller that has the ability to control to some degree the price of the product it sells.".
Explanation: A price searcher is a seller that has the ability to control to some degree the price of the product it sells.
Answer:
net income of the investee is not considered earned by the investor until dividends are declared by the investee
Explanation:
Cost method can be regarded as
a method that is utilized when the influence of the investor over the investment that which he owns is just little or no influence , this could be typically described as owning less than 20% of the company. The investment will be recorded in the asset section of the balance sheet at historical cost. When an investment is made by an investing entity and the investment is having following two criteria, then the investment can be accounted for by the investor using the cost method.
Those criteria are;
1) There is no substantial influence by the investor over the investee.
2)There is no easily determinable fair value for the investment.
This cost method is best method when making a passive as well as long-term investment which doesn't result to influence over the company.
It should be noted that If the cost method is used to account for a long-term investment in common stock, then net income of the investee is not considered earned by the investor until dividends are declared by the investee
Answer:
TRUE
Explanation:
In simple words, differentiation strategy refers to the business strategy under which an organisation tries to get competitive advantage in the market by adding some unique features in the existing products or by introducing brand new products for utilization.
This strategy is used by service industries as well in which the organisations frequently introduce new technologies for better operating activities. Such strategies can sometimes lead to establishment of new industry in which the innovating firm gets the first mover advantage.
Answer:
It was raised $236,009.52
Explanation:
The YTM is 6.43
so we need to calculate the market price of the bond using this rate.
Market price will be equal to the cash raised from the sale.
1st annuity of 20 years semiannual payment of
275,000 x 0.0599/2 = 8236.25
PV = 183,932.289662
2nd we have to calculate the prsent value of the redeemption of the bond
PV = 79,0773.23051
Now we add both values to get the cash proceeds from the bond
79,0773.20351 + 183,932.289662 = 236,009.52
Answer:
Bramble free cash flow was $508,000
Explanation:
Cash provided by operations = $778,000
Cash used in investing = $672,000
Cash used in financing = $186,000
Cash spent on fixed assets during the period = $270,000
Average current liabilities = $637,000
Average total liabilities = $1,682,000
Free cash flow = Cash flow from operating activities - Capital expenditures
= $778,000 - $270,000
= $508,000