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3 years ago

A forward contract is described by:_______.

Business

1 answer:

Inga [223]3 years ago

6 0

Answer:

Agreeing today to buy a product at a later date at a price set today.

Explanation:

Forward contract can be described as a type of contract that exists between two parties. Both parties agree on a specific and defined price to buy and sell their assets at a later date. The specific price agreed upon by the both the buyer and seller is known as forward price.

It is necessary for the buyer and seller to ensure the forward contract is completed before the fixed date to prevent problems that might arise. The advantages of this type of contract include: consistency in the price agreed upon by both parties, downside risks are prevented due to the ability to determine future rate.

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If a family spends its entire budget in a given time frame, the family can afford either 90 cans of vegetables or 60 frozen pizz

Alborosie

Answer:

60 frozen dinners is better

Explanation:

4 0

4 years ago

Example : Yazici Advertising purchased supplies costing 2,500 on October 5. An inventory count at the close of business on Octob

Over [174]

Question Completion:

Journalize the adjusting entries:

Answer:

Yazici Advertising

Adjusting Journal Entries:

Date Account Titles Debit Credit

October 31:

1. Supplies Expense $1,500

Supplies $1,500

To record the supplies expense for the year ended October 31.

2. Insurance Expense $50

Prepaid Insurance $50

To record the insurance expense for the month of October.

Explanation:

a) Data and Analysis:

October 31:

1. Supplies Expense $1,500 Supplies $1,500 ($2,500 - $1,000)

2. Insurance Expense $50 Prepaid Insurance $50 ($600 * 1/12)

3. From the scenario, the year-end is October 31.

7 0

3 years ago

Gilmore, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6

egoroff_w [7]

Answer:

$66.78

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Value of Share = Dividend / (Rate of return - Growth rate)

P0 = D0 ( 1 + g ) / ( r - g )

where

P0 = Value of stock at time 0 / today = ?

D0 = Dividend paid at time 0 / current = $3.15

g = growth rate = 6%

r = rate of return = 11%

Placing all these values in the formula

P0 = $3.15 ( 1 + 6% ) / ( 11% - 6% )

P0 = $3.339 / 5%

P0 = $66.78

4 0

4 years ago

Read 2 more answers

Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $

Art [367]

Answer:

The statement of stockholders’ equity for the month ended October 31 is $18,450,000.

Explanation:

Noric Cruises Inc.

Statement of stockholders’ equity for the month ended October 31

Common stock Paid-In Capital Retained Earnings

Opening balance $150,000 $3,225,000 $12,400,000

Addition 800,000 - -

Net income - - $2,350,000

Cash dividends - - (475,000)

Balance at Oct 31 $950,000 $3,225,000 $14,275,000

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3 years ago

What is the difference between marginal values and average values?

tester [92]

What is the difference between marginal values and average values? Marginal values show the additional benefit or cost from consuming an additional unit of a good, while average values are the benefit or cost per unit of a good. When finding the marginal value a marginal analysis is conducted to figure out at what value a person will receive another benefit from making another purchase or consumption of a good or service.

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3 years ago