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3 years ago

In 1-2 sentences describe why compound interest earns more money than simple interest.

1 answer:

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Simple interest refers to the amount of money that one has to pay for borrowing a particular sum of money for a specified period of time.The simple interest is a one time calculated amount.
The compound interest is a type of interest in which the interest accrues over a period of time is compounded with the amount borrowed in order to arrive at a new principal amount. Compound interest has to be calculated regularly.
Compound interest earns more money than simple interest because the principal amount increases constantly as the result of the addition of accrued interest to the principal.

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Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, increases are ma

HACTEHA [7]

Answer:

c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.

Explanation:

The journal entry for issuance of the common stock for cash is shown below:

Cash A/c Dr $70,000

To Common stock $50,000 (5,000 shares × $10)

To Additional paid in capital A/c - Common stock A/c $20,000

(Being the common stock is issued for cash)

While recording this entry it increased the assets so the cash account is debited while at the same time it also increased the common stock for $50,000 and the additional paid in capital in excess of par value i.e $20,000 so both these account are credited

8 0

3 years ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

3 years ago

Ralph is a former student in AECN 141. The first exam he scored a 60%, and did not study. The second exam he scored a 75% and st

sergeinik [125]

The marginal productivity of the first hour of studying is 15%.

<h3><u>What is Marginal Productivity?</u></h3>

The additional output, return, or profit generated per unit as a result of benefits from production inputs is referred to as marginal productivity or marginal product.
Raw materials and labor are examples of inputs. According to the rule of decreasing marginal returns, the marginal productivity will normally decrease as production rises when a production element is improved.
This indicates that for every extra unit of output produced, the cost advantage often decreases.
Diminishing marginal productivity is often recognized in its most straightforward form when a single input variable exhibits a drop in input cost.
For instance, a reduction in labor expenses during the car-manufacturing process would result in slight increases in profitability per vehicle.

Formula for Marginal Productivity = (Qn – Qn-1) / (Ln – Ln-1)

The total product value is divided by the difference in labor to determine the marginal product of labor.

Know more about Marginal Productivity with the help of the given link:

brainly.com/question/13623353

#SPJ4

7 0

1 year ago

Minor violations may be granted upwards of _______ days for correction.

Radda [10]

Minor violations that are committed by people could just provide 10-20 days in the correction. However, heinous crimes like murder or homicide or ra pe could lead to reclusion Perpetua or lifetime imprisonment to the guilty or much worse, it could lead to the death penalty which was adopted by some states.

7 0

2 years ago

Read 2 more answers

A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment. Which of the follo

bogdanovich [222]

Answer:

Lets see what are the double entries of borrowings and purchase of new manufacturing equipment and their implications:

Double Entry for borrowings:

Dr Bank $500,000

Cr Notes Payable $500,000

The above double entry shows that the total assets and Notes Payable are increased due to this transaction. Furthermore, in the Statement of Cash flow we see an increase in Cash from Financing activities and decrease in the Cash from investing activities.

The second transaction is purchase of new manufacturing equipment. It must be accounted for as under:

Dr Manufacturing Equipment $500,000

Cr Bank $500,000

This transaction shows that net impact on the total assets is same as one asset has been increased by spending the other asset. This transaction also has no impact on Cash for financing, inventories and notes payable balances. However, their is increased negative balance in cash from investing activities.

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3 years ago