Answer:
The correct option is B. False.
Further explanation is given below in the explanation section.
Explanation:
Offer From ABC Company to XYZ Company:
1,000,000 widgets to sell.
Selling Price of 1 widget = $1.00
Total Price = $1,000,000
Counter Offer from XYZ company to ABC Company.
Selling Price = $0.75
Total Price = 0.75 x 1,000,000 = $750,000
But in the end, ABC company sold its widgets to GHK company.
The correct option to this question is false.
This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.
XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.
Answer:
Purchasing $18,000 (000) worth of plant and equipment
Explanation:
The purpose of an emergency loan is to help a company pay its current liabilities and obligations because they temporarily o not have enough cash. A company might be economically very healthy, but financially unstable. E.g. a company increased its total sales by handing out more credit to its customers, but it cannot collect its accounts receivables fast enough to pay for its current obligations.
In this case, since we do not know the number of outstanding stocks nor the value of the oldest bonds, we cannot choose these options. While liquidating the inventory would increase the cash balance, not decrease it. The only action that we know for sure would severely affect the cash position of the company is purchasing a lot of equipment in cash.
Answer:
His total economic profit for the year was –$1,000. The right answer is b.
Explanation:
In order to calculate the total economic profit for the year, we have to use the following formula:
Total economic profit = total revenue - total explicit cost - implicit cost =
Acording to the data:
Total Revenue=$100,000
Total explicit cost= ($3,000×12)+($2,000×12)+($500×12)=$ 66,000
implicit cost= $ 35,000
Hence, Total economic profit= $100,000 - $66,000 - $35,000 = -$1,000
Investment
institutions is a specialize in raising money (investment capital) for
governments and corporations by issuing securities such as stocks or bonds.
People buying a company's securities are buying into a portion of a company and
its earnings or income. Investment institutions offers shares or units.
Answer:
$862
Explanation:
We assume the face value of the bond to be $1000
Coupon rate is 5% paid annually
Coupon payment = 5% x $1,000 = $50
Current market rate or Yield to Maturity (YTM) = 8.50%
We need to calculate the current market price of this bond.
Current price = 
+ [ Coupon payment x 
]
Where,
Face Value = $1000
Coupon Payment = $50
N = 5
r = 0.085 or 8.50 %
After plugging in the values in the above equation We get the current price as $862
$862 is the maximum amount Jason should be willing to pay for this bond
