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geniusboy [140]
3 years ago
12

d)The owner of a cemetery plans to offer a perpetual care service for grave sites. The owner estimates that it will cost $150 pe

r year to maintain a grave site. If the interest rate is 8.50%, what one-time fee should the owner charge for the perpetual care service
Business
1 answer:
Nana76 [90]3 years ago
4 0

Answer:

The one time fee that the owner should charge is $1764.71

Explanation:

To calculate the one time fee, we take this as a perpetuity and calculate the value or price of the perpetuity based on the fututre cash flows discounted to today's price by a certain dicount rate.

The discount rate is taken as 8.5% which is also the market interests rate.

The formula for the value/price of the perpetuity is,

Value / Price = Cash flow / Discount rate

Value / Price = 150 / 0.085

Value / Price = $1764.705 rounded off to $1764.71

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18. HexaCo has various policies and procedures pertaining to the company’s operations. These policies and procedures are routine
anyanavicka [17]

Answer: Control activities

                 

Explanation: In simple words, control activities refers to the policies and procedures that help the management to reduce the risk they have identified. These activities reports as a support structure for other operating activities of the business.

In the given case, hexa company has policies and procedures that supports managements initiatives. Hence the given case depicts the control activities element.

3 0
3 years ago
The IPO process involves several entities, such as the issuing company, institutional investors, brokers, lawyers, regulators, r
Masteriza [31]

Answer:

The IPO Process

One of the underwriters in the IPO deal described above is.

a. J.P. Morgan Securities Inc.

Explanation:

J.P. Morgan Securities Inc. and the following underwriters, Goldman Sachs & Co., Bear Stearns & Co. Inc., Credit Suisse First Corporation, and Lehman Brothers Inc. was involved in the Initial Public Offering (IPO) in 1999, where $3.6 billion was raised in the United States and Canada.  An underwriter is a financial specialist, working closely with the issuing houses to determine the initial offering price of the securities.  The underwriters usually buy the securities from the issuer and then sell them to investors using its distribution network.

5 0
3 years ago
In applying the high-low method, what is the fixed cost? month miles total cost january 80,000 $144,000 february 50,000 120,000
kupik [55]
The high and low levels of activity are 90,000 miles in April and 50,000 miles in February. The costs at these two levels are $195,000 and $120,000, re-spectively. The difference in costs is $75,000 ($195000-120000), and the difference in miles is 40,000 (90000-50000). Therefore, variable cost per unit is $1.875computed as follows.
75000÷40000=1.875

Determine the fixed costs by subtracting the total variable costs at either the high or the low activity level from the total cost at that activity level
Variable cost=1.875×50,000=93,750

fixed cost=120,000−93,750=26,250


5 0
3 years ago
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The b
Cerrena [4.2K]

Answer:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

Explanation:

The journal entry is given below

Insurance expense A/c Dr $2,400

        To Prepaid Insurance $2,400

(Being insurance expense is recorded)

The computation is shown below:

= Insurance premium ÷ number of months × required months

= $4,800 ÷ 4 months × 2 months

= $2,400 months

The 2 months is taken from November 1 to December 31

6 0
3 years ago
Joe decided to start washing cars on his street. The other kids in the neighbourhood noticed Joe was making a lot of money washi
Norma-Jean [14]

Joe decided to start washing cars on his street. The other kids in the neighborhood noticed Joe was making a lot of money washing cars and decided to open their own car wash. When they opened their own car wash, the equilibrium price decreased and the equilibrium quantity increased.

The price at which the quantity provided and demanded are equal is referred to as the equilibrium price. It is established by where the demand and supply curves cross. If more goods or services are produced than are needed to satisfy demand at the going rate, there is a surplus, which pushes prices lower.

Reduced demand will result in a drop in the equilibrium price and a reduction in supply. With everything else remaining constant, an increase in supply will result in a decrease in the equilibrium price and an increase in the amount required. The equilibrium price will increase as the supply declines, while the quantity needed will go down.

Learn more about equilibrium price and quantity here

brainly.com/question/22569960

#SPJ4

8 0
1 year ago
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