True or false: all of the points along a production possibilities frontier are efficient

Hammerstein Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock award plan,

LekaFEV [45]

Answer and Explanation:

As per the data given in the question,

1)

Fair value per share = $20.4

Number of Share = 2 million

Fair value of award = Fair value per share ×Number of Share

= $20.4 × 2 million

= $40.8 million

2) No Entry

3)

Compensation expense($40.8 million÷4 years) $10.2 million

To Paid in capital - restricted stock($20.4-$10.2) $10.2 million

(Being the compensation expense is recorded)

4)

Fair value per share = $20.4

Share granted = 2 million

(100%-10%) forfeiture rate = 90%

fair value of award = $20.4×2×90%

= $36.72 million

5 0

4 years ago

Alvin's credit card charges him 18% interest on his unpaid balance. His bank is offering him 1% interest on a savings account. T

Marrrta [24]

Answer:

Alvin should pay off the unpaid money.

Explanation:

The Alvin should pay off the balance of credit card with his extra money because the interest rate charged by the bank on the unpaid balance is very high (18 %) and the interest rate on saving is 1 % which is very low. If the unpaid balance will not be paid then Alvin’s extra money will go into the payment of interest rate. So, at first thing he should pay off the unpaid money.

7 0

3 years ago

The consumer price index (CPI) is calculated a. using a fixed basket of goods and, therefore, will tend to understate inflation.

jasenka [17]

Answer: b. using a fixed basket of goods and, therefore, will tend to overstate inflation.

Explanation:

CPI uses a fixed basket of goods each year and measure inflation by monitoring the changes in this basket over several years/ periods.

This has the tendency to overstate inflation however, due to three(3) main reasons: Substitution bias, Quality bias and New product bias.

With substitution bias, the CPI does not take into account that when products increase in price, people will substitute them for lower priced goods. Quality bias means that CPI does not account for change in quality. New Product bias means that CPI does not account for new and better products as it uses a fixed basket.

Put together these three can cause CPI to overstate inflation by as much as 1% sometimes.

7 0

3 years ago

Mad Hatter Enterprises purchased new equipment for $373,000, terms f.o.b. shipping point. Other costs connected with the purchas

Wewaii [24]

Answer: $332,540

Explanation: find attached my solution in the document below.

NB : note that the Insurance after equipment placed in service and Insurance for the first year of operations was not added because these are to be termed expenses to be deducted in the P & L account.

6 0

3 years ago

N the knowledge economy, if a large portion of company value is in intellectual and human assets, the difference between the mar

Stells [14]

It will be expected that the difference between a company's market value and book value should <u>be larger than</u> a company with mostly physical and financial assets if the large portion of company value is in intellectual and human assets.

<h3>What is an intellectual/human assets?</h3>

These are asset possessed by a firm that ranges from human capital, information capital, brand awareness, instructional capital etc.

These are assets that can be improved when a firm hires better employees, conduct training programs, develops new patents etc

In conclusion, since the large portion of company value is in intellectual and human assets, then, the market/book value would be larger than a company with mostly physical/financial assets.