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kupik [55]
3 years ago
8

Ben was considering spending his gift card on books, music downloads, or movie tickets. He chose the movie tickets. Any values g

iven up from not choosing the books and music downloads are called _____ .
a. incentives
b. opportunity costs
c. trade-offs
Business
1 answer:
Bess [88]3 years ago
6 0

Answer:

b

Explanation:

You might be interested in
Morin Company's bonds mature in 10 years, have a par value of $1,000, and make an annual coupon interest payment of $60. The mar
m_a_m_a [10]

Answer:

= $865.79

Explanation:

<em>The value of the bond is the present value (PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>

Value of Bond = PV of interest + PV of RV

The value of bond of Morin Company can be worked out as follows:

Step 1

PV of interest payment

PV = A ×  (1-(1+r)^(-n))/r

r- 8%, n- 10, A- interest payment = 60

PV of interest

= 60× (1- (1+0.08)^(-10)/0.08

= 402.60

Step 2

<em>PV of Redemption Value</em>

PV = RV × (1+r)^(-n)

= 1,000 × (1.08)^(-10)

= $463.193

Step 3

<em>Price of bond</em>

= $536.80 + 463.19

= $865.79

7 0
3 years ago
On July 1, 2018, Crane Company issued for $9450000 a total of 90000 shares of $100 par value, 8% noncumulative preferred stock a
RSB [31]

Answer:

Cash 540,000

Paid-in Capital—Stock Warrants $86,400

Common Stock $360,000

Paid-in Capital in Excess of Par—Common Stock 273,600

Explanation:

The Key to this Question is:

Although the right to purchase the common stock was exercised October 31, 2018. Since the warrant has already been issued July 1, 2018, the 36,000 rights exercised will be calculated and valuated based on prevailing prices on July 1, 2018.

Hence, the Par Value = $10, the purchase price allowed by warrant = $15 and the Market price of the rights to use $2.40

Step 1: Calculate the Cash Amount Received from the exercise of the 36,000 rights

= 36,000 Shares (exercised on October 31, 2018) x $15 ( the Warrant right to purchase common Stock)

= 36,000 x $15

=$540,000 (this is the amount paid for the 36,000 rights exercised)

Step 2: Calculate the Paid in Capital

a. Paid in Capital- Stock Warrants- based on the Market Price of Rights on July 1, 2018

= 36,000 x $2.40 (Market Price of the rights on July 1, 2018)

= $86,400 (This is the value of the 36,000 shares purchased based on the prevailing market price @ July 1, 2018)

b. Calculate Paid in Capital based on the Issued warrant's Par value of One Share of Common Stock when the warrant was issued

= 36, 000 x $10

= $360,000

c. Calculate the Paid-in Capital in Excess of Par—Common Stock

= $360,000 - $86,000

=$273,600 (This is the difference between the par value on July 1, 2018 when the rights were issued and the market price of the rights on that same date).

In summary:

Cash 540,000

Paid-in Capital—Stock Warrants $86,400

Common Stock $360,000

Paid-in Capital in Excess of Par—Common Stock 273,600

5 0
3 years ago
Which of the following statements is true?a. The higher the maturity risk premium, the higher the probability that the yield cur
tia_tia [17]

Answer:

b. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease

Explanation:

I have attached an image which plots the behavivour of a yield curve and inflation in a same period. As you can observe, there is an indirect relation between boths curves.

8 0
3 years ago
Cullumber Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $ 90
Llana [10]

Answer:

$102,080

Explanation:

Given that,

Service cost = $90,500

Interest rate = 9 %

Expected return on plan assets = $62,800

Prior service cost amortization = $10,300

Projected benefit obligation at January 1, 2017 = $712,900

Pension expense for the year 2017:

= Service cost + Interest cost - Expected return on plan assets + Prior service cost amortization

= $90,500 + ($712,900 × 9%) - $62,800 +  $10,300

= $90,500 + $64,080 - $62,800 +  $10,300

= $102,080

8 0
3 years ago
Presented below is information related to Lexington Real Estate Agency.
Ber [7]

Answer:

Oct 1

DR Cash............................................................................$20,000

CR Common Stock.........................................................................$20,000

Oct 2. No entry required

Oct 3

DR Office Furniture .....................................................$2,300

CR Accounts Payable................................................................$2,300

Oct 6

DR Accounts Receivable.............................................$3,600

CR Service Revenue - Realty services...................................$3,600

Oct 27

DR Accounts Payable ..................................................$850

CR Cash .......................................................................................$850

Oct 30

DR Salaries Expense ....................................................$2,500

CR Cash ..........................................................................................$2,500

3 0
3 years ago
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