1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mademuasel [1]
3 years ago
11

Which one of the following statements is TRUE? a. Company sponsorship of a local charity is an example of a nonpecuniary benefit

.b. Since outside directors have no other connection with the firm, they are indebted to the CEO for putting them on the board.c. An inside director is a board member who also holds a managerial position in the company. d. In a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.
Business
1 answer:
mojhsa [17]3 years ago
5 0

Answer: c. An inside director is a board member who also holds a managerial position in the company

Explanation:

Inside Directors are indeed Board members who are employees/ hold managerial positions in the company.

They are in a unique position to help the board in Corporate Governance because as they are on the ground, they have specialized knowledge of the company and as such can provide complete information to the Board.

They typically include a Company's top executives such as the CEO, CFO and the COO.

You might be interested in
The beginning inventory is 52,800 units. All of the units that were manufactured during the period and 52,800 units of the begin
Kazeer [188]

Answer:

a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations.

b. $776,160

Explanation:

a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations

b. Given that

Beginning inventory = 52,800

Fixed manufacturing costs = $14.70 per unit

Total Beginning inventory = Beginning inventory × Fixed manufacturing costs

= 52,800 × $14.70 per unit

= $776,160

5 0
3 years ago
On June 1, Norma Company signed a 12-month lease for warehouse space. The lease requires monthly rent of $550, with 4 months pai
Sati [7]

Answer:

Balance = $1,650

Explanation:

As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows

Adjusting entry at the end of June would be

                             DEBIT       CREDIT

Entry

Rent Expense     $550

Prepaid Rent                         $550

The balance on Norma's prepaid expense would be

Prepaid Rent  = $2200

Rent Expense = ($550)

Balance = $1,650

7 0
3 years ago
The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bon
MaRussiya [10]

Answer:

Ans. The after tax cost of this bond is 2.09%

Explanation:

Hi, first we need to establish the cash flow of the bond, so we can find the after tax cost of the bond. After we find the after tax cash flow of the bond, we must use the IRR function of MS Excel to find the semi-annual cost of this debt, but, all after tax debts should be presented in annual basis. Let me walk you through the process. First, let me show you how it should look.

Face Value      100  

price              101,4  

years                7 years  

Coupon                9%  

Coupon                4,5% semi-annually  

tax                      30%  

   

Per       Cash Flow After Tax  

0                 101,4 101,4  

1                   -4,5 -3,15  

2                   -4,5 -3,15  

3                   -4,5 -3,15  

4                   -4,5 -3,15  

5                   -4,5 -3,15  

6                   -4,5 -3,15  

7                   -4,5 -3,15  

8                   -4,5 -3,15  

9                  -4,5 -3,15  

10                  -4,5 -3,15  

11                  -4,5 -3,15  

12                  -4,5 -3,15  

13                  -4,5 -3,15  

14               -104,5 -73,15  

   

Cost of Debt 1,04% semi-annually

Cost of Debt 2,09% annually

Ok, now, as you can see, there are 14 periods, that is because the coupon is paid semi-annually, the way to find the cash flow (I mean, the bond´s coupon) is:

Coupon (semi-annual)=(Face Value)x\frac{0.09}{2} =4.5

At the end (period 14), we need to add the face value and the coupon, that is $100+$4.5=$104.5

Now, to find the value of the third column (after-tax cost), we do the following.

After-tax-Cost=Couponx(1-taxes)=4.5(1-0.3)=3.15\\

Now, consider this, you are receiving 101.4 for every 100 of debt, that means that you are receiving more money than the emission value, and paying interests over 100 instead of 101.4, that is why we have to use the IRR excel function to find out the semi-annual cost of debt. That is, 1.04%.

Now, to make this an effective annual rate, we calculate it like this.

EffectiveAnnualRate=(1+semi-annual Rate)^{\frac{1}{2} }  -1=(1+0.0104)^{\frac{1}{2} } -1=0.0209

Finally, the after-tax cost of this debt is = 2.09%

Best of luck.

6 0
3 years ago
Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortun
Vladimir [108]

Answer:

The situation is called insolvency. bank is unable to pay to depositor.

Explanation:

The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt.  The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.

Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.

3 0
3 years ago
During a certain year, the consumer price index increased from 120 to 132 and the purchasing power of a persons bank account inc
Tatiana [17]
The answer is D.} the inflation rate was 12 percent.
4 0
3 years ago
Other questions:
  • Suppose a consumer is purchasing Coke and pretzels in quantities such that she is achieving consumer equilibrium. Then the price
    10·1 answer
  • Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, other operating expenses is $294,000,
    10·1 answer
  • The following PERT network lists all the different tasks that must occur in order for West Coast Aquatics Swim Club to successfu
    15·1 answer
  • You are bullish on Telecom stock. The current market price is $80 per share, and you have $10,000 of your own to invest. You bor
    8·1 answer
  • The Finishing Department of Parker and King​, ​Inc., the last department in the manufacturing​ process, incurred production cost
    5·1 answer
  • There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate
    5·1 answer
  • A(n) ____________ portfolio maximizes return for a given level of risk, or minimizes risk for a given level of return.
    15·1 answer
  • Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,00
    12·1 answer
  • Think through the SWOT analysis and think about your personal product offering. Focus on the specific value you would bring to t
    9·1 answer
  • Secret Trails received payment in full within the credit period for horse boarding for $1,300 plus 4% sales tax. Terms of the sa
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!