Answer:
The indifference point is 50 minutes.
Explanation:
Giving the following information:
A has a fixed cost of $10 and a variable cost of $0.05 per minute $0.10 per MB. Plan B has no fixed cost and a variable cost of $0.25 per minute $0.20 per MB.
First, we need to formulate the cost equation for each of the plans.
Plan A:
Total cost= 10 + 0.05*x
Plan B:
Total cost= 0.25*x
X= minutes
To determine the indifference point, we need to equal both formulas:
10 + 0.05x= 0.25x
10/0.20= x
50=x
The indifference point is 50 minutes.
Answer:
Total return equals earnings multiplied by the dividend payout rate.
Explanation:
Total return is calculated as appreciation of price plus dividend paid, divided by the original price of the stock.
The income gained on a stock is the increase in its value along with dividend that is paid out. This is compared to the original price (denominator) to determine how much returns is realised on the stock.
Mathematically
Returns= {(New price- Old price) + Dividend} ÷ Old price
So the statement total return equals earnings multiplied by the dividend payout rate is false
Answer:
c) There are no guaranteed investments.
Explanation:
Although all statements are mostly true, the c) answer describes the challenge of investing in the simplest way possible.
The guarantee of investments is not discrete, meaning <u>an investment can never be 100% or 0% guaranteed.</u> Investments are always associated with a certain amount of risk, as numerous factors are always influencing its outcome. Therefore, we can differ only high-risk, low-risk and medium-risk investments.
Answer:
(I)
retained earnings 92,400 debit
common stock 28,600 credit
additional paid-in 63,800 credit
(II)
retained earnings 924,000 debit
common stock 286,000 credit
additional paid-in 638,000 credit
(III) no entry required
Explanation:
22,000 x 10% = 2,200 new shares
market price:
2,200 X $42 = 92,400
book value
2,200 x $13 = 28,600
additional paid-in
63,800
100% sotkc dividends:
22,000 x 100% = 22,000 new shares
market price:
22,000 X $42 = 924,000
book value
22,000 x $13 = 286,000
additional paid-in
638,000
the stock split will not change the accounting as the total value fo the equity remains the same.
B. Mutual-benefit organizations
