When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should increase the initial project cost by dividing that cost by (1-0.068). The flotation cost is the cost which emerge when a corporation gather its fund by issuing new securities. Underwriting fees, legal fees, registration fees are the common fees that will increase corporate's expense when they issue securities. Therefore, we can consider those fees as a flotation cost.
<u><em>Capitalists want to make money . . . the best way to do that is to make businesses/production more profitable by increasing production to a large scale (i.e. industrialization)</em></u>
Answer: sorry i took long
3. the time lost looking at both items
4. The cost of growing peppers, compared to the cost of growing tomatoes.
5.The net value to Kendra of going to Samuel's house to play games.
6. $150
9. The producers decide what should be produced.
10. Producers decide what should be produced.
11. property rights - producers can own or rent the building they manufacture in
12. A student learns to make web pages and starts making websites for local small businesses.
13. a personal computer or tablet used to access the internet
14. the decrease of pollution in the city
Electronic communications tend to be more casual
Answer:
Dr Bond investment $50,000
Cr cash $50,000
Dr cash $1,250
Cr interest revenue $1,250
Dr cash $50,000
cr bond investment $50,000
Explanation:
On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount
On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.
Upon receipt of face value at redemption,the journal entry would be opposite of the initial one
