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Kisachek [45]
3 years ago
8

If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate: a.

​$0 worth of buyer surplus and unknown amount of seller surplus. b. ​$0 worth of seller surplus and unknown amount of buyer surplus. c. ​No information provided. d. ​There is no surplus created for either of the party.
Business
1 answer:
Rainbow [258]3 years ago
6 0

Answer:c. No information provided

Explanation:

The fact that the house would be sold for $500.000 does not give us direct information about how much the seller was expecting, only what he or she accepted to sell it for, depending on the conditions it could mean they had no better offer and needed to sell it and therefore accepted what was offered even if it meant to lose a bit o gain much less that what they wanted, so since we are not offered information on the expectations of the seller we cannot say anything about it, then the other options are false, because it could even mean loss and no surplus.

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Solaris, Inc. has 2000 shares of 5%, $10 par value, cumulative preferred stock and 50000 shares of $1 par value common stock out
lubasha [3.4K]

The annual dividend on the preferred stock is $1000 in total.

<h3><u>What is an Annual dividend?</u></h3>
  • An annual dividend is a payment made by an insurance firm to its policyholders each year in the insurance sector. Annual dividends are most frequently given out in combination with plans that provide long-term disability insurance and permanent life insurance.
  • A payment made annually to an insurance policyholder, frequently under a long-term disability or permanent life insurance policy, is known as an annual dividend.
  • The insurance company's income, the success of investments, and the amount of money invested all affect the dividend amount.

Annual profits may be paid as cash, used to pay for further insurance, or added to premiums to lower future total payments.

The company has 2000 shares of 5% that is: (2000*5)/100 = 100

with a par value of $10, which becomes:

100*$10 = $1000.

Know more about Annual Dividend with the help of the given link:

brainly.com/question/15871366

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3 0
2 years ago
Which of the following account groups are temporary accounts?
victus00 [196]

Answer: d. Rent Revenue, Fees Earned, Miscellaneous Expense

Explanation:

Temporary accounts are also referred to as nominal accounts and they are the accounts that are closed when the year ends and began afresh the following accounting period and they basically relates to fees, expenses and gains.

From the options above, the answer will be option D "Rent Revenue, Fees Earned, Miscellaneous Expense"

8 0
3 years ago
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If a firm has a cost of equity of 15 percent, and the firm is 100 percent equity financed. The firm is contemplating a $150 mill
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Answer:

c. $166.67 million

Explanation:

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cost of expansion = $150 million / (1 - 10%) = $150 million / 90% = $166.67 million

Flotation costs increase the cost of equity, since they are an expense that decreases the net amount of money received by a corporation when it issued new stocks or new bonds.

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Codetermination ensure that workers also also part of the decision makers in a corporate entity.

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3 years ago
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Answer:

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To cash                                                                                  $14,630.77

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To cash                                                         $14,630.77

(To record the first two semiannual interest payments)

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