Answer:
In other words,this redemption transaction results in $60000 charge to e&p and $85000 reduction of Caramel's paid capital account
Explanation:
E&P in relation to redemption is =total e&p/total shares*shares redeemed
E&P in relation to redemption is =$300000/5000shares*1000shares
E&P in relation to redemption is =$60000
The reduction in Caramel's paid-in-capital is $85000 ($145000-$60000)
Answer:
Results are below.
Explanation:
Giving the following information:
Present value(PV)= $7,000
Number of periods (n)= 4 years
Interest rate (i)= 8% annually
<u>To calculate the future value of the investment, we need to use the following formula:</u>
FV= PV*(1 + i)^n
FV= 7,000*(1.08^4)
FV= $9,523.42
<u>Now, the interest earned:</u>
Interest earned= FV - PV
Interest earned= 9,523.42 - 7,000
Interest earned= $2,523.42
The 4-year term instrument's nominal rate is higher than the 2-year term instrument's nominal rate.
What is nominal rate?
The increase in payment you make to the lender for using the borrowed funds is known as the nominal interest rate.
The rate of compounding is higher for 2-year investments than for 4-year investments, which are compounded semi-annually.
As a result, option (b) is correct.
Learn more about on nominal rate, here:
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Answer: A) cost-leadership business strategy
Explanation:
Cost leadership business strategy is a
- strategy of getting a competitive advantage by having the lowest cost of operation in the entire industry.
- makes a reasonable profit on each sale because you've reduced costs.
Here, To gain an advantage over other computer chip makers, Sematech focuses on <u>reducing its costs below all of its competitors</u> .
where as product differentiation is a technique use to differentiate a product from similar offerings on the market.
So, Sematech is pursuing a<u> cost-leadership business strategy</u>.
So, correct option is (A).
The package software company, intuit, bought mint.com as one strategy for anticipating the future and avoiding disruptive innovation.
A disruptive innovation is one that makes products and services simpler and more accessible to underserved or untapped markets.
Traditionally, established businesses focus on refining their goods and services for their lucrative clientele, usually ignoring the requirements and preferences of undeveloped markets. This lack of focus allows smaller businesses or newcomers the opportunity to reach this disregarded group with easier, more accessible choices.
On the other side, sustaining innovation refers to the practice of inventing to improve current goods and services for the client base already present, either in response to consumer or market demands.
To know more about disruptive innovation.
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