The reason why commodity futures contracts are transferable is: <span>They can be bought and sold but the obligation in the contract remains valid.
Commodity futures contract is an agreement to buy or sell a specific asset at a specific price somewhere in the future.
This contract does not specify the name of the person who should buys the asset, so it could be transferable as long as the exchange is still fuiflled.
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Answer:
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 * (1+g) is dividend expected for the next period
- r is the required rate of return
or market rate of return
Plugging in the values for P0, D1, and g, we can calculate the value of r or market rate of return on the stock to be,
37.73 = 3.70 / (r - 0.058)
37.73 * (r - 0.058) = 3.7
37.73r - 2.18834 = 3.7
37.73r = 3.7 + 2.18834
r = 5.88834 / 37.73
r = 0.1560652001 or 15.60652001% rounded off to 15.61%
Answer: The amount invested in the dogwood tree was $5000, while $35000 was invested in the red maple tree.
We arrive at the answer as follows:
Let the proportion of dogwood trees be x.
Then the proportion of red maple trees in the nursery will be 1-x, since there are only two types of trees in the nursery.
We use the following formula to find the proportion dogwood and maple trees in the nursery:
Solving for x we get
We can find the proportion of maple trees as follows:
Since we have the proportions, we can easily find the amount invested in type of tree as follows:
Answer:
Net Income will be overstated
Explanation:
The journal entry for salaries payable is
Salaries Expense Dr.
To Cash A/C
(Being salaries paid recorded)
Salaries expense is charged to net income and the journal entry is
Net Income Dr.
To Salaries Payable
Salaries expense reduces net income as it being a deductible expenditure for a corporate.
In the given case, salary expense has been accounted as a product cost. This would reduce the expenses and thus would overstate the net income.
Answer: General Chennault established specific and measurable goals for the pilot.
Explanation:
From the question, we are informed that in Flying Tigers case study from lesson two, General Chennault established an organization in which reward pay was contingent on performance based standards.
The kind of goal setting and pursuit strategy represented in this case study show that General Chennault established specific and measurable goals for the pilot. The pilots know what to do in order for them to get rewarded.
