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Vilka [71]
3 years ago
13

Sun Inc. assigns $6,000,000 of its accounts receivables as collateral for a $2 million 8% loan with a bank. Sun Inc. also pays a

finance fee of 1% on the transaction upfront. What would be recorded as a gain (loss) on the transfer of receivables
Business
1 answer:
meriva3 years ago
7 0

Answer:

The answer is: Assigning accounts receivables as collateral for a bank is not a asset transfer.

Explanation:

Even as the bank offers Sun Inc. with a factoring limit, the accounts receivables are still in the firm's accounting book. The firm has the obligations to go after their debtors for collections. The account receivables are transferred to creditors when a company becomes defaulted or bankrupted.

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A monopoly is most likely to emerge in a market when
Zanzabum

Answer: there is only one producer of a commodity

Explanation: In simple words, monopoly refers to a market structure in which there is only one participant in the market who is making available the commodity to the customers.

Monopoly can arise from a number of factors such as patents rights, new invention etc. Sometimes the govt. of a country finds it suitable to handle a particular industry for the national benefit such as defense.

Although monopolist is the single producer but still he or she cannot charge any price as the rule of  price and demand is applies to monopoly also.

5 0
3 years ago
A group health plan that saves you money on health insurance is an example of a/an _____.
Ymorist [56]

The answer is C. it helps with medical, disability, life insurance.

Hope this helps!

~LENA~

7 0
4 years ago
Read 2 more answers
Who here plays 7ds grandcross
ololo11 [35]

Answer:

not me

Explanation:

3 0
3 years ago
Pakistan’s GDP in 2010, using the official exchange rate on 1/1/2010, is equal to $300 billion USD ($300,000,000,000). When 2010
docker41 [41]

Answer:

Undervalued

Explanation:

The PPP exchange rate is the implicit exchange rate, so that everywhere, one dollar has the same purchasing power. In general, this exchange rate is different from the exchange rate on the market.

Because the same nominal GDP translates to a higher real GDP by using the PPP exchange rate, one Pakistan Rupee must be valued more in terms of U.S. dollars than in contexts of the market exchange rate under the PPP exchange rate. The Pakistan Rupee is therefore worth less than its true value in the economy, i.e., undervalued.

5 0
3 years ago
stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 4.75% per year. The requ
USPshnik [31]

Answer:

The stock price 5 years from now will be 44.46

Explanation:

The stock price will increase like  compound interest at the same rate as the dividends.

Stock(1+ g)^{time} = Amount

Stock 35.25

time 5

dividend grow rate 0.0475

35.25 (1+ 0.0475)^{5} = Amount

Amount 44.45588696

The stock price 5 years from now will be 44.46

<u>Reasoning:</u>

In five years, if we calcualte the gordon dividend growth model:

\frac{divends_{year5}}{return-growth} = Intrinsic \: Value

and year 5 dividends would be:

Dividend\: (1+ g)^{5} = Divends_{year5}

\frac{Dividend\: (1+ g)^{5}}{return-growth} = Intrinsic \: Value

we can arrange the formula like this:

\frac{Dividend}{return-growth} \times (1+ g)^{5}= Intrinsic \: Value

The first part is the current stock price so our formula is confirmed.

$Market Value Today \times (1+ g)^{5}= Intrinsic \: Value

6 0
3 years ago
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