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4 years ago

Identify the following transactions that they are whihc type of market.

Business

1 answer:

BartSMP [9]4 years ago

7 0

Answer:

A. Future market

B. Capital market

C. Secondary market

Explanation:

A) A futures market is an auction market in which participants buy and sell commodity and futures contracts for delivery on a specified future date. In here farmer agrees to sell 10,000 bushels of wheat to the buyer on a specified future date.

B) A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold

C) The secondary market, also called the aftermarket and follow on the public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold.

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________ unemployment is the natural movement of workers into and out of jobs, such as when a person quits one job without first

ICE Princess25 [194]

The type of employment described above is FRICTIONAL UNEMPLOYMENT. Frictional unemployment is said to occur in an economy when the people move from one job to another. Frictional unemployment is always present in an economy because of temporary changes made by both workers and employers.

7 0

3 years ago

Precision Tool is trying to decide whether to lease or buy some new equipment for its tool and die operations. The equipment cos

Alexeev081 [22]

Answer:

-$51,566.

Explanation:

So, we are given the following parameters in the question above;

Cost of equipment = $1.2 million, pre-tax cost of borrowed funds = 8 percent, tax rate = 32 percent and the equipment can be leased for = $242,500 a year.

Step one : Calculate the After-Tax lease payment .

The After-Tax lease payment = ($242,500) × (1 - 0.32) = $164,900.

Step two: Calculate the Annual Depreciation Tax-Shield.

Annual Depreciation Tax-Shield = ($1,200,000/7) × (0.32) = $54,857.

Step three: Calculate the After-Tax Discount Rate.

The After-Tax Discount Rate = 0.08 × (1 - 0.32) = 5.44%.

Step four: Calculate the Net Advantage to Leasing.

The Net Advantage to Leasing = $1,200,000 - ($164,900 + $54,857.14) × (PVIFA 5.44%, 7).

= -$51,566

3 0

3 years ago

You decided to save all of tax refunds next four years. Given your projection of your annual income and effective tax rate, you

Galina-37 [17]

Answer:

Final value= $15,101.13

Explanation:

Giving the following information:

You believe that you will be able to invest $3,000, $3,300, $3,800, and $4,000 next four years. The interest rate is 5%.

To calculate the final value of each deposit we need to use the following formula:

FV= PV*(1+i)^n

Year 1= 3,000*1.05^3= $3,472.88

Year 2= 3,300*1.05^2= 3,638.25

Year 3= 3,800*1.05= 3,990

Year 4= 4,000

Total= $15,101.13

7 0

4 years ago

Determine the total assets of Novak Corp. at December 31, 2020.

andreyandreev [35.5K]

Answer: $76,220

Explanation:

Total Assets = Current Assets + Fixed Assets

Current Assets = Cash + Accounts Receivable

= 13,320 + 19,980

= $33,300

Fixed Assets = Equipment = $42,920

Total Assets = 33,300 + 42,920

= $76,220

5 0

3 years ago

Cutter Enterprises purchased equipment for $72,000 on January 1, 2021. The equipment is expected to have a five-year life and a

maxonik [38]

Answer:

$19,200

Explanation:

Given

Cost of equipment = $72,000 Date of purchase = January 1, 2021.

Useful period = 5 years

Residual value = $6,000

Annual depreciation using straight line method

= ($72,000 - $6,000)/5

= $66,000/5

= $13,200

Annual depreciation using the double declining method

= $13,200 * 2

= $26,400

By December 31, 2022, 2 years depreciation would have been computed on the asset, hence

Book value at December 31, 2022 = $72,000 - 2($26,400)

= $72,000 - $52,800

= $19,200

4 0

3 years ago