Answer:
Option (B) $5,000
Explanation:
Data provided in the question:
Repayment of Loan = $50,000
Interest = 8%
Cash flow Probability
$65,000 70%
$45,000 30%
Tax rate = 0%
Now,
Interest on loan = 8% of $50,000
= $4,000
Expected value of cash flow = ∑[cash flow × Probability ]
= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )
= $45,500 + $13,500
= $59,000
The owner's expected cash flow after debt service
= Expected value of cash flow - Interest on loan - Repayment of Loan
= $59,000 - $4,000 - $50,000
= $5,000
Hence,
Option (B) $5,000
Answer:
The total surplus from Andrew's sale to Nick is $35.
Explanation:
The total surplus is the sum of producer surplus and consumer surplus.
The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.
While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.
Consumer surplus for Nick
= $80 - $60
= $20
Producer surplus for Andrew
= $60 - $45
= $15
Total surplus from generated from Andrew's sale to Nick
= $20 + $15
= $35
Answer:
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
Explanation:
The journal entry for issuance of the common stock for cash is shown below:
Cash A/c Dr $70,000
To Common stock $50,000 (5,000 shares × $10)
To Additional paid in capital A/c - Common stock A/c $20,000
(Being the common stock is issued for cash)
While recording this entry it increased the assets so the cash account is debited while at the same time it also increased the common stock for $50,000 and the additional paid in capital in excess of par value i.e $20,000 so both these account are credited
Answer: Nothing
Explanation:
From the question, we are informed that Z chooses a life income with 10 year period certain settlement option for the annuity Z owns and that Z dies after 15 years of receiving income benefit payments. Based on the above situation, Z's beneficiary receive will receive nothing.
This is because Z has already gotten the income benefits payment since it's for a 10 year period
No, Cobin should have been stay to see the result of the academic misconduct hearing because he has some facts available in this case.
<h3 /><h3>What is the William J Upchurch medal? </h3>
The William J Upchurch medal is a final undergraduate award, which is given annually to the outstanding seniors in the Hopkins college of Business.
The criteria for the award consists overall GPA, GPA in business courses, involvement in student organization etc.
The facts available in this case are: Cobin was attending the orientation session in his junior year, & went to two career fairs in the past two year. He was also a member for two years. He should stay to see the result of the academic hearing.
Learn more about the William J Upchurch medal here:-
brainly.com/question/1413612
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