Answer: Mutual funds
Explanation: Mutual fund is a pool of securities in which the assets are purchased by procuring fund from several different investors. Mutual funds includes different type of securities so that diversification benefits could be taken. These are generally managed by investment professionals.
Generally mutual funds include stock, bonds and debt. Thus, an investor seeking diversified portfolio can seek for mutual funds.
The entry for the dividend declaration is as following:
Debit Cash Dividend $12,000
Credit Dividend Payable $12,000
To acquire the amount we must multiply the dividend per share which is 0.06 with a number of common shares issued which is 20,000. Capston, Inc have to entry this transaction as the dividend declares although the cash has not yet disbursed to comply with the accrual principle.
The treasury stock must be ignored because it is the portion of stocks which held by the company in its own treasury and the amount of authorized stock because it is not yet issued and the company doesn't have the obligation to pay that portion of stocks dividend<span>.</span>
Answer: $4
Explanation:
The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.
When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.
The Variable Costs for the containers is $4 so that is the transfer price as well.
Answer:
Type A is 7%, type b is 11%
Explanation:
We have these two firm's as type a and type b
For type A
Interest would be = risk Free rate of 2% + risk free rate of 5% = 7%
For type B
= Risk free rate of 5% + risk free rate of 6% = 11%
I would use the average of this two 9% as interest but this is not going to work for type A because this interest rate is too high. People won't want to pay this much.
