Answer:
Lowest effective interest rate
A 6.858%
B 6.883%
C 6.908%
D 6.933%
Explanation:
Effective rate is the rate of interest that actually earned or paid on any investment or on a loan. It also measure the compounding effect on the investment.
r = (1 + i/n)^n - 1
A
6.858% Annual
r = 6.858%
B
6.6571% Daily
Assuming 365 days
r = (1 + 6.6571%/365)^365 - 1 = 6.883%
C
6.7359% Quarterly
r = (1 + 6.7359%/4)^4 - 1 = 6.908%
D
6.722% Monthly
r = (1 + 6.722%/12)^12 - 1 = 6.933%
Answer: The correct answer is c. Expenses are reported on the income statement when cash is paid.
Explanation: Matching principle states that expenses are matched with the related revenue in the same period, that is, expenses incurred to generate related revenue are recorded during the same time interval the related revenue is recorded in order to show the true and fair position of the profitability of the company.
Based on the above definition, <u>only option C does not align with the matching principle</u><u> </u>because expenses should be recorded in the income statement when incurred and NOT when cash is paid. If it is recorded when cash is paid, it means <em>cash basis of accounting</em> is being applied.
Answer and Explanation:
The classifications are as follows:
a. Operating activities: As there is a cash receipts from royalities so the same come under this activity
b. Financing activities: As the funds are raised so the same would be come under this activity.
c. Operating activities: As there is a decrease in raw material inventory as compared to the last year so the same is come under this activity
d. Investing activities: As the marketing rights are purchased so the same would be come under this activity
1. Are you allowed to shift gears when crossing railroad tracks? a. Yes
b. No
c. Only when the crossing has been marked exempt.
2. How many feet away must you stop your bus for railroad tracks? a. At least 10 feet but not more than 50 feet from the crossing
b. At least 15 feet from the crossing
c. At least 15 feet but no more than 50 feet from the crossing
3. You are stopped for a railroad crossing. When may you open your doors?
a. You should open your forward door if that helps you see and hear
b. Never
c. You may open your emergency doors if it improves your view of the train
4. How far must you stop from the draw of a drawbridge? a. At least 15 feet
b. At least 25 feet
c. At least 50 feet
5. Name a situation where you must not allow your bus to be fueled. a. When the air temperature is below freezing
b. When the engine is turned off and the driver is absent
c. When in a closed building with riders on board?
6. Interstate what kind of report must you complete at the end of your shift? a. You must complete a logbook page for each bus driven
b. You must make a list of names of all passengers transported
c. You must complete a written inspection report for each bus driven
7. Why should a driver count the number of students getting on a school bus? a. Helps to know if the bus is overloaded
b. Helps to determine if some passengers will have to stand
c. Helps to know if everyone is on the bus or is safely away from it
8. Why is smooth handling of transmission and clutch a safety factor on busses? a. Smooth handling always reduces driver fatigue
b. Quick stops or sharp turns can cause injuries to passengers
c. Both of the above
9. Which of the following can be stowed in the aisle on a school bus? a. Book bags, calculators, and books
b. Lunches and coats and jackets
c. None of the above
10. Students planning to get off the school bus should not get up from their seat until? a. The school bus driver has turned on the flashing red lights
b. The bus has come to a complete stop
c. The driver tells them to get up
11. What is a factor that most affects the amount of traction that your bus has? a. The width of the road
b. The type and condition of the road surface
c. The brand name of your tires
12. In backing up which is more dangerous? a. Backing to the left
b. Backing to the right
c. They are equally dangerous
13. One rule says that you should have how much following distance?
Answer: 10.46
Explanation:
To answer this we can use the Constant Growth Model of Stock Valuation. The formula is,
P = D1/(r-g)
Where,
P is the current price,
D1 is the next dividend
g is the expected growth rate in the dividend,
and r is the required rate of return for the company.
Seeing as we have everything else and it is the required return that we seek, let us make 'r' the subject of the formula.
P = D1/(r-g)
P(r-g) = D1
r-g = D1/P
r = D1/P +g
So,
r = 2.95/ 49.50 + 0.045
= 0.10459595959
= 10.46%
the required return is 10.46%