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drek231 [11]
3 years ago
12

Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net co

st of the goods if Glenn Company pays within the discount period? a. $8,100 b. $8,280 c. $8,820 d. $9,000
Business
1 answer:
Charra [1.4K]3 years ago
5 0

Answer:

The correct answer is B

Explanation:

The net cost of goods is computed as if the paid in the discounting period:

Net Cost of goods = Inventory cost - (Inventory cost × Discounting percentage)

where

Inventory cost is $9,000

Discounting percentage is 2%

Putting the values above:

Net Cost of goods = $9,000 - ($9,000 × 2%)

Net Cost of goods = $9,000 - $180

Net Cost of goods = $8,280

Therefore, the amount of $8,280 will be paid by the company if paid within the discounting period and avail the discount of $180.

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A difference between explicit and implicit costs is that a) explicit costs must be greater than implicit costs. b) explicit cost
Andrej [43]

Answer:

Implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.

Explanation:

Rent, salary, and other operating expenses are considered explicit costs. They are all recorded within a firm's financial statements, meaning they are present and clearly shown or reported as a separate cost. The main difference between the two types of costs is that implicit costs are opportunity costs, meaning that it is present but it is not initially shown or reported as a separate cost, while explicit costs are expenses paid with a company's own tangible assets. In other words, explicit costs are always shown, implicit costs are not, at least initially, exactly like the meaning words suggest.

8 0
3 years ago
Suppose your firm just issued a 20-year, $1000 par value bond with semiannual coupons. The coupon interest rate is 9%. The bonds
sergiy2304 [10]

Answer:

<em>4.78%</em>

Explanation:

<em>From the question given, we solve the issue</em>

<em>the calculation of he bond price is:</em>

<em>Price of bond = per value * (1- flotation cost)</em>

<em>$1000 *  (1- 0.05)</em>

<em>= $950</em>

<em>For the calculation of semi-annual coupon payments, </em>

<em>Semi -annual coupon payment  = Par value * Interest/2</em>

<em> $1000 * 0.09/2 = $45</em>

<em>Calculation of semi- annual yield to maturity</em>

<em>Let recall the following</em>

<em>YTM = yield to maturity</em>

<em>C = The semi-annual coupon payment</em>

<em>FV= Face value or par value </em>

<em>PV= Price of a bond </em>

<em>n = Maturity years of the bond </em>

<em>Therefore,</em>

<em> YTM= C + FV - PV/n/ FV + PV/2</em>

<em>which is</em>

<em>$45 + $1000 - $950/40/$1000 + $950 / 2 = 4.78%</em>

4 0
3 years ago
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not r
goldfiish [28.3K]

Answer:

Don't mind this, my bad

Explanation:

8 0
3 years ago
Advance, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 11 years to maturity that is
Usimov [2.4K]

Answer:

a. 3.56%

b. 2.31%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

Present value = $1,040

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 4% ÷ 2 = $20

NPER = 11 years × 2 = 22 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

1. The pretax cost of debt is = 2 × 1.78% = 3.56%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 3.56% × ( 1 - 0.35)

= 2.31%

5 0
3 years ago
_____________ occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.
andriy [413]

<u>An </u><u>oligopoly</u> occurs when circumstances have allowed several large firms to have all or most of the sales in an industry.

Oligopoly markets are markets dominated with the aid of a small range of suppliers. They can be determined in all international locations and throughout a large range of sectors. some oligopoly markets are aggressive, even as others are appreciably much less so, or can as a minimum seem that way.

A number of the most exquisite oligopolies within the U.S. are in film and television production, recorded track, wi-fi companies, and airlines. for this reason the 1980s, it has become greater, not unusual for industries to be ruled with the aid of or three companies. Merger agreements among foremost gamers have ended in industry consolidation.

An oligopoly is a market structure in which a market or enterprise is ruled by means of a small wide variety of big sellers or manufacturers. Oligopolies regularly end result from the choice to maximize profits, leading to collusion among corporations.

Learn more about oligopoly here brainly.com/question/3227891

#SPJ1

3 0
1 year ago
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