Answer
1. D
2. C
3. A
Explanation
1.
To identify the return below is the formula to calculate the Return
Net Return = Current Worth - Total of Purchase
Net Return = $260,000 - $250,000
Net Return = $10,000
Answer 1 = D
2.
below is the formula to calculate Rate of Return
Rate of Return = ( Current Value - Original Value)/Original Value
Rate of Return = ($260,000-$250,000)/$260,000
Rate of Return =
.
Rate of Return = 3.86%
if round off it we found
Rate of Return = 4%
Answer 2 = C
3.
first we need to calculate the what is the value of after the inflation 2.5%
$6,500
current worth - inflation amount
$260,000 - $6,500
$253,500
now calculate the rate of return
($253,500 - $250,000)/($253,000)
$3,500/$253,000
1.38%
if we round off 1.38% then we found 1.5%
Answer 3 is A 1.5%
Answer:
Deitz Corporation
Cash Budget
For the Quarter ended March 31, 2020:
Beginning balance $33,300
Cash Collections From Customers 205,350
Sale of Equipment 3,330
Total available cash $241,980
Cash Payments:
Direct materials $47,730
Direct labor 77,700
Manufacturing overhead 38,850
Selling & Administrative 49,950
Purchase of Securities 15,540 $(229,770)
Ending Balance $12,210
Minimum Balance 27,750
Shortfall $15,540
Explanation:
Deitz Corporation uses this Cash Budget which it has prepared to understand its financial needs for the next quarter. For example, with the minimum balance of $27,750 most likely based on past experience the corporation will start making arrangements for some outside funds to the tune of $15,540 or more to meet its cash needs for the first quarter.
Answer: Statement A
Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.
.
Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.
.
Thus, from the above explanation we can conclude that statement A is correct.
Answer:
c. $23,160
Explanation:
Adjusted cash balance per books as at August 31
Cash balance per book $19,500
Add Notes receivable and interest collected by bank $4,800
($19,500+$4800) $24,300
Less:(Deposits in transit $900
-NSF check 1,020) ($120)
NSF check (1,020)
Cash balance per books $23,160
Answer:
5.5%
Explanation:
The underwriting spread = $0.66 per share
the percent underwriting spread = ($0.66 / $12) x 100 = 5.5%
The underwriting express is the fee that the underwriter of the stock (usually an investment bank) will charge the company for carrying out the transaction, either an IPO or simply issuing more stocks.
