Answer:
B) $ 1,614
Explanation:
Given the information
Production= 3,350 units
Direct labor cost= $159,786
Direct labor hours= 13,450
=> rate per hour = $159,786 / 13,450 = $11.88
4 direct labor-hours for 1 unit
$12.00 per direct labor-hour
Budgeted production : 3,350 + 150 = 3500 units
=> The labor rate variance for the month was:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
= ($12.00 - $11.88 )*13,450
= 1614
We choose B
Answer:
A right to force the business into bankruptcy if dividends are not paid.
Explanation:
These are the characteristics of Equity Financing:
-Maturity. Equity funding does not need to be repaid.
-Claim on income. At management´s discretion and if the company is profitable, shareholders may receive dividends after creditors have been paid.
-Claim on assets. Shareholders have claims only after the firm satisfies claims of lenders.
-Influence over management. As owner of the company, shareholders can vote on some aspects of corporate operations, although in practice only large shareholders have much influence. Private equity holders can have considerable influence.
The most difficult to construct.
Answer:
This was an actual court case that ended in the Court of Appeals of the First District of California. Initially a lower court had ruled against the Sharabianlous and set extremely high compensations for damages to Berenstein. I do not understand why the court did it since it was proven that the land was contaminated and couldn't be sold under unless cleaned.
Finally, the court of appeals ruled in favor of the Sharabianlous, not because they thought they were right, but due to errors in the original trial.
The big issue in this case was that the contract signed by the Sharabianlous wasn't clear enough about what would happen if the land was not suitable for sale and they also failed to seek a lawyer when the contamination issues became obvious. If you read the case, even the real estate broker acted against the Sharabianlous when the property was appraised since he didn't tell the appraiser about the contamination issues.
The final ruling was made in 2010, 8 years after the parties engaged in the transaction, which gives us an idea of how complicated things can get when legal procedures are not followed, even though the outcome should be obvious.
If I was part of a jury and the case was about property that couldn't be sold due to contamination, I would probably vote in favor of the buyer, not the seller. It's common sense, but sometimes it you do not follow the appropriate legal path, common sense makes no sense at all.
Answer:
All the options written are the steps involved in solving the problem. The formula that would be used is compounding formula because we have future value which is $150,000 and rate of return which is 10.25%. Furthermore, here n is 10 years time.
The formula is:
Future Value = Present Value * (1 + r)^n
$150,000 = Present Value * (1.1025)^10
$150,000 = Present Value * 2.6524
$150,000 / 2.6524 = Present Value
Present Value = $56553
So the amount that we should deposit in mutual funds today to buy Ferrari is $56553. The difference is due to rounding off.
