Electronic cover letters are longer than traditional paper cover letters.

An annuity that goes on indefinitely is called a perpetuity. The payments of a perpetuity constitute a/an series. The equation i

Alborosie

Answer:

Present value of the security = $1,888.89

Explanation:

The annual dividend of $170 represents a perpetual income stream. The present value of a perpetuity is calculated as follows:

$PresentValue=\frac{Coupon}{r}$

where r =interest rate per annum that would be compounded for each year

Therefore, present value of the security = $\frac{170}{0.09}$ = $1,888.89

4 0

3 years ago

Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positiv

Genrish500 [490]

Answer:

Inflow of innovation

Explanation:

Negacho introduced its new flavoured chips and received positive response. This shows that the market is open to adopting new innovative products

This is what prompted Brex Mex to introduce their own flavored potato chips.

Basically the market is favorable to introduction of new ideas and products.

8 0

2 years ago

On April 1, 2021, Shoemaker Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules,

Vlad [161]

Answer:

Explanation:

The journal entries are shown below:

1. Notes receivable A/c Dr $450,000

To Cash A/c $450,000

(Being the notes receivable acceptance is recorded)

2. Interest receivable A/c Dr $40,500

To Interest revenue $40,500

(Being the interest is collected)

Interest = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (9 months ÷ 12 months)

= $40,500

The 3 months is calculated from April 1 to December 31

3. Cash A/c Dr $504,000

To Notes receivable A/c $450,000

To Interest receivable A/c $40,500

To Interest revenue A/c $13,500

(Being cash collected recorded)

Interest revenue = Principal × rate of interest × number of months ÷ (total number of months in a year)

= $450,000 × 12% × (3 months ÷ 12 months)

= $13,500

The 3 months is calculated from December 31 to April 1

6 0

3 years ago

Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco

wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

= $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0

3 years ago

Hor to attract teenagers to go to shopping mall (no discounting)

Radda [10]

Hello!

Often people put up signs that, that person likes and is interested in. People also can bargain with a person. So if they are leaving because they think the product is to high of a price for them, then you can tell them you can lower the price.

( word of advice, this is a last resort option)

I hope it helps!

6 0

3 years ago

Read 2 more answers