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3 years ago

An increase in the interest rate A. increases the percentage yield of holding money. B. decreases the opportunity cos

Business

1 answer:

Katena32 [7]3 years ago

5 0

Answer:

increases the opportunity cost of holding money

Explanation:

An increase in the interest rate actually increases the opportunity cost of holding money.

The opportunity cost of holding money is the nominal interest rate. Opportunity cost can be referred to as the interest rate that is forgone on alternative assets. So, when interest rate increases, the opportunity cost of holding money also increases.

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53) In the current year, Borden Corporation had sales of $2,000,000 and cost of goods sold of $1,200,000. Borden expects returns

Brums [2.3K]

Answer: See explanation

Explanation:

The adjusting entry or entries to record the expected sales returns are:

Debit: sales return and allowance = $150,000

Credit: Sales refund payable = $150,000

The above $150,000 was gotten as:

= ($2,000,000 × 8%) - $10,000

= ($2,000,000 × 0.08) - $10,000

= $160,000 - $10,000

= $150,000

Also,

Debit: Inventory returns estimated = $90,000

Credit: Cost of goods sold = $90,000

The above $90,000 was gotten as:

= ($1,200,000 × 8%) - $6,000

= ($1,200,000 × 0.08) - $6,000

= $96,000 - $6,000

= $90,000

3 0

4 years ago

Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company

zavuch27 [327]

Answer:

The current share price is $60.97

Explanation:

The values given are

Symon's super corporation is expected to pay a dividend of $4.39

The company expects to increase its dividend by 4.2percent every year

The required return on the company's stock is 11.4 percent

Therefore, the current share price is

= 4.39/( 11.4/100 + 4.2/100 )

= 4.39/( 0.114 - 0.042)

= 4.39/(0.072)

= 60.97

Thus, the current share price is $60.97

8 0

3 years ago

Isabella knows that her customers always shop for top-of-the-line leather purses and price is not a consideration. She decides t

forsale [732]

Answer:

Isabella uses Premium Pricing.

4 0

2 years ago

The law of diminishing marginal returns holds for a situation in which Group of answer choices all inputs are variable. all inpu

Natasha_Volkova [10]

The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.

<h3>What is the law of diminishing marginal returns?</h3>

The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).

In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.

Read more on diminishing marginal returns here: brainly.com/question/13767400

#SPJ1

3 0

2 years ago

The Darwin Company reports the following information that occurred during the current period: Sales commissions expense $15,600

ch4aika [34]

Answer:

The Darwin Company

Calculation of Manufacturing Overhead costs:

= $17,200

Explanation:

a) Data and Calculations:

Depreciation on factory equipment $4,700

Indirect labor 5,900

Factory rent 4,200

Factory utilities 1,200

Indirect materials used 1,200

Total Manufacturing overhead costs = $17,200

b) Darwin's manufacturing overhead costs will include only the above listed costs. Sales commissions, direct materials, direct labor, and office salaries expense do not form part of the manufacturing overhead costs. The manufacturing overhead costs are neither direct materials or labor costs or selling and administration costs.

8 0

4 years ago