Answer:
$475,000
Explanation:
Calculation for By what amount would LBM credit capital in excess of par
Dr Cash $500,000
(25,000 shares*$20 per share)
Cr Common Stock $25,000
(25,000 shares*$1 per share)
Cr Capital in excess of par $475,000
($500,000-$25,000)
Therefore based on the above Journal entry and calculation the amount that LBM would credit as capital in excess of par will be $475,000 ($500,000-$25,000).
Answer:
A person has a comparative advantage in the production of a good when she or he can produce the product at a lower opportunity cost compared to another person.
Explanation:
Comparative cost advantage is a concept that emphasizes on an individual, a firm or a county specializing in the production of goods in which it has a greater advantage over others. In other words, a country is expected to produce goods in which it can produce with less opportunity cost than its trade partner.
Answer:
the indifference between receiving $250 today or is $235.85
Explanation:
The computation of the indifference between receiving $250 today or is shown below:
Here we determine the present value
= Amount ÷ (1 + risk free rate of interest)
= $250 ÷ (1 + 0.06)
= $250 ÷ 1.06
= $235.85
Hence, the indifference between receiving $250 today or is $235.85
The same is relevant and considered too
Answer:
P = $1664.12 pay with 9% compounded monthly
P = 1652.98 pay with 9% compounded continuously
Explanation:
given data
time period = 20 year
amount = $10000
solution
we get here compound interest for 9% compounded monthly that is express as
FV = .................1
here P is principal amount and r is interest rate and n compound in year and FV is future value
$10000 =
solve it we get
P = $1664.12 pay with 9% compounded monthly
and
for 9% compounded continuously
FV = ............2
$10000 = P\times e^{0.09\times 20}
solve it we get
P = 1652.98 pay with 9% compounded continuously
Most definitely and without a doubt C