Answer:
a. Financing for public corporations must flow through financial markets.
FALSE, it can flow through financial markets or financial intermediaries.
b. Financing for private corporations must flow through financial intermediaries.
FALSE, it can flow through financial markets or financial intermediaries.
c. Almost all foreign exchange trading occurs on the floors of the FOREX exchanges in New York and London.
FALSE, they are traded in many different markets around the world.
d. Derivative markets are a major source of finance for many corporations.
FALSE, the major source of financing for corporations are stock markets.
e. The opportunity cost of capital is the capital outlay required to undertake a real investment opportunity.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
f. The cost of capital is the interest rate paid on borrowing from a bank or other financial institution.
FALSE, opportunity cost of capital refers to lost earnings resulting from choosing one investment over another alternative.
Answer:
1. $108 million fair value of award
2. December 31, 2021
($ in millions)
Dr Compensation expenses 54
Cr Paid-in capital—restricted stock 54
December 31, 2022
Dr Compensation expenses54
Cr Paid-in capital—restricted stock 54
Dr Paid-in capital—restricted stock 108
Cr Common stock 18
Cr Paid-in capital—excess of par (remainder) 90
Explanation:
Allied Paper Products, Inc
1.
$6 fair value per share x 18million shares granted
= $108 million fair value of award
2. Journal entries
December 31, 2021
($ in millions)
Dr Compensation expense ($108 million ÷ 2 years) 54
Cr Paid-in capital—restricted stock 54
December 31, 2022
Dr Compensation expense ($108 million ÷ 2 years) 54
Cr Paid-in capital—restricted stock 54
Dr Paid-in capital—restricted stock 108
Cr Common stock (18 million shares x $1 par) 18
Cr Paid-in capital—excess of par (remainder) 90
If i could be become invisble,id prank people
Answer:
36.26%
Explanation:
Simple rate of return:
return/investment
<u>return:</u>
In this case, it will be the cost saving for the new machine: 161,000
<u>investment</u>
We will decrease the investment by the recovery from the old machine.
468,000 new machine - 24,000 salvage value of new = 444,000
<u>Then, proceed to calculate:</u>
161,000/444,000 = 0.3612 = 36.26%
Consideration:
Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.
