Answer:
Dower will receive $30,856
Explanation:
on March 31 the bank will discount the future value of the note at 8% discount rate:
principal x (1 + rate x time ) = future value of the note
30,000 x (1 + 0.06 x 3/12*) = 30,450
Now, we solve for the discounte value at march 31 using an 8% discount rate:
30,450 x (1 - 0.08 x 2/12) = 30.856
*From Feb 28th to May 31th we have a 3-month period
**we have two month-lapse between maturity and discount date
Answer:
A) have zero alphas
Explanation:
Stock's alpha show show much they have over or under performed in relation to similar peer stocks. But if the stocks were correctly priced, then alpha should be 0 since no variation, either positive or negative should occur. Alpha basically measures the error in the stock's valuation. It is always better to have positive alphas because if you make a mistake then hopefully is in your favor, but alphas can also be negative and that equals unexpected losses.
This is why the CAPM model only considers beta in its calculation.
Answer:
Tax law uncertainty.
Explanation:
The “Tax law uncertainty” is the correct answer because it can be seen in the question that Congress has disallowed the deductions for advertisement in the future tax years. Since the decisions that the government takes are confidential and only a few people are aware of the decisions before its formal announcement. So the same case is here, Jolsen had a contract of $375000 annually and it will estimate that after obtaining the tax deduction, the advertisement cost will be lower. But the changes in the tax laws result in underestimated after-tax cost by Jolsen.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr 15,900
To Notes Receivable A/c $15,000
To Interest Revenue A/c $900
(Being cash is collected with respect of notes receivable and interest revenue)
For recording this transaction, we debited the cash account and credited the notes receivable and interest revenue account
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