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2 years ago

Which one of the following statements correctly describes export subsidies?

1 answer:

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A. Export subsidies are government payments to domestic producers to enable them to charge lower prices and sell more goods

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If you take out money from a CD before it reaches maturity you must A) pay the bank a penalty, typically three months' interest.

kolezko [41]

Answer:

A) pay the bank a penalty, typically three months' interest.

Explanation:

Most commercial banks and credit unions charge a premature withdrawal fee to individuals that cash out a CD before its maturity date. Generally the withdrawal fee equals 3 months worth of interest, but this is not a fixed rule, some banks may charge a lower fee or others a higher one.

For example, I have a CD in a commercial bank, and if I withdraw the money early (at least after 1 month of making the CD) it will not pay me any interest at all.

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2 years ago

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Who plays f o r t n i t e

ohaa [14]

Answer:

not me i play buildroyal.io

Explanation:

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2 years ago

LBM, Inc. issues 25,000 shares of common stock for $20 per share. The stock has a par value of $1 per share. By what amount woul

Arisa [49]

Answer:

$475,000

Explanation:

Calculation for By what amount would LBM credit capital in excess of par

Dr Cash $500,000

(25,000 shares*$20 per share)

Cr Common Stock $25,000

(25,000 shares*$1 per share)

Cr Capital in excess of par $475,000

($500,000-$25,000)

Therefore based on the above Journal entry and calculation the amount that LBM would credit as capital in excess of par will be $475,000 ($500,000-$25,000).

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3 years ago

Indigo Ink Supply paid a dividend of $5 last year on its common stock. It is expected that this dividend will grow at a rate of

pychu [463]

Answer:

1st $5.43

2nd $5.89

3rd $6.39

4th $6.93

5th $7.52

6th $7.81

$75.85

Explanation:

Dividend is the payment to the stockholders out of earning of the company. Companies have a dividend policy which determine the future dividend payments.

Dividend of each year can be calculated by using the growth rate as a discount in the compounding formula.

Dividend Payment

First year = $5 x ( 1 + 8.5% )^1 = $5.43

Second year = $5 x ( 1 + 8.5% )^2 = $5.89

Third year = $5 x ( 1 + 8.5% )^3 = $6.39

Fourth year = $5 x ( 1 + 8.5% )^4 = $6.93

Fifth year =$5 x ( 1 + 8.5% )^5 = $7.52

Sixth year = $7.52 x ( 1 + 3.8% )^1 = $7.81

Intrinsic value of the stock is the present value of all the associated dividends

We need to calculate the present value of all the dividend payment.

First year = $5.43 x ( 1 + 11.5% )^-1 = $4.87

Second year = $5.89 x ( 1 + 11.5% )^-2 = $4.74

Third year = $6.39 x ( 1 + 11.5% )^-3 = $4.61

Fourth year = $6.93 x ( 1 + 11.5% )^-4 = $4.48

Fifth year = $7.52 x ( 1 + 11.5% )^-5 = $4.36

After fifth year the dividend will be discounted as follow

PV of dividend after fifth year = [ $7.81 / (11.5% - 3.8%) ] x [ (1+11.5%)^-6 ] = $52.79

Intrinsic Value of Stock = Sum of PV of all dividends = $4.87 + $4.74 + $4.61 + $4.48 + $4.36 + $52.79 = $75.85

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3 years ago

Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happ

4vir4ik [10]

Answer:

Equilibrium wage increase
Level of employment increase

Explanation:

A shift rightward in the labor market of a single employer would imply that the employer wants more labor. They will therefore increase the wages that they are paying their labor to entice more labor and the level of employment in the industry will increase as the employer hires more people.

Graphically speaking, when the labor demand curve shifts right, it will intersect with the labor supply curve at a higher equilibrium wage. The quantity of labor will also increase as it goes to a new equilibrium point.

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2 years ago