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blsea [12.9K]
3 years ago
9

Joe and Mike have been friends since college and both work in the financial industry. The two work for two un-affiliated broker/

dealers and Mike calls Joe to let him know that he may not meet his quota for sales unless he gets some new customers. If he fails to meet his quota, he will lose his job. Joe has done very well and sends some of his clients over to Mike in an attempt to help Mike out. Mike agrees to split all commissions on sales from these clients, since Joe has done him a favor. Which of the following most accurately describes how the NASAA might classify this type of arrangement?
A. Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.
B. As long as Mike makes the appropriate dis-closures to these new clients with regard to the splitting of commissions with Joe, the arrangement is acceptable.
C. Because splitting of commissions is never permitted under any circumstances, this arrangement is un-acceptable.
D. As long as Mike discloses the arrangement to his firm, the arrangement is acceptable.
Business
1 answer:
castortr0y [4]3 years ago
5 0

Answer:

A) Because Joe and Mike work for un-affiliated broker/dealers, they are not permitted to share or split commissions, making this arrangement un-acceptable.

Explanation:

Even though Joe and Mike are friends and know each other for a long time, in the real world where money has an almost divine status, they must follow the rules. Commissions can only be split between agents that work for the same broker-dealer firm and are registered to work in the same state.

Since Joe and Mike work for unaffiliated broker-dealers, they cannot share clients or split commissions. Following the rules will not only help them professionally, but probably will help their friendship.

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Hey does anyone have any good communication sites?
N76 [4]

Answer:

Try Discord

Explanation:

Discord is an instant messaging app where you can get involved with the community, its free! I hope this helps have a nice day! ;)

5 0
3 years ago
Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes a
Ann [662]

Answer:

A. The answer is:

Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000

B. The answer is:

Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

Explanation:

A.

Denote X is the total revenue Qwik Service has to earn.

We have:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet break-even, the total contribution margin should be equal to fixed cost or: 0.3X = 12,000,000 <=> X = $40,000,000

=> Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

    Repair-related revenue = 0.25 x 40,000,000 = $10,000,000.

B.

The note Y is the total revenue per one outlet.

At one outlet, revenue and margin will be:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet net income target of $45,000, the total contribution margin should be equal to fixed cost of $60,000 and delivering $45,000 net income or: 0.3X = 45,000 + 60,000 <=> X = $350,000.

=> Oil-related revenue = 0.75 x 350,000 = $262,500;

    Repair-related revenue = 0.25 x 350,000 = $87,500.

6 0
3 years ago
Which expense category will most likely be changed to allow money for the purchase of a car?
Ivan
<h2>Reducing the "Entertainment " will hold good for the given scenario</h2>

Explanation:

There things which a man needs like food, water, shelter, etc.

Savings : This aspect is necessary for helping us in crucial point. It can serve as an another hand on demand.

Groceries : This is most important component of every men and women for living. So it cannot be reduced.

Utilities : This is equally important.

Entertainment : This shows luxurious aspect and not a mandatory one. So the amount spent in this category should be reduced.

7 0
3 years ago
On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,0
Dima020 [189]

Answer:

1. The amount Montgomery should record the note payable and corresponding cost of the building on January 1, 2021. is $136,907.65.

2. The amount of interest expense on this note which Montgomery will recognize in 2021 is $13,690.76.

Explanation:

Note: This question is not complete. The complete question is therefore presented before answering the question as follows:

On January 1, 2021, the Montgomery Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2021, 2022, and 2023. The last three are to be $40,000 each and will be paid on December 31, 2024, 2025, and 2026. Montgomery borrowed other money at a 10% annual rate. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021?

2. How much interest expense on this note will Montgomery recognize in 2021?

Explanation of the answer is now given as follows:

1. At what amount should Montgomery record the note payable and corresponding cost of the building on January 1, 2021?

Note: See the attached excel file for the calculation of the present value of all payments (In bold red  color).

From the attached excel file, we have:

Present value of all payments = $136,907.65

This present value of all payments of $136,907.65 is the amount Montgomery should record the note payable and corresponding cost of the building on January 1, 2021.

2. How much interest expense on this note will Montgomery recognize in 2021?

This can be calculated as follows:

Interest expense = Cost of the building * Interest rate = $136,907.65 * 10% = $13,690.76

Therefore, the amount of interest expense on this note which Montgomery will recognize in 2021 is $13,690.76.

Download xlsx
4 0
2 years ago
Taggart Goods Corp. just reported a net income of $8,000,000, and its current stock price is $17.50 per share. Taggart is foreca
Whitepunk [10]

Answer:

$15.2279

Explanation:

Current P/E = Price per share * Share outstanding / Net Income

Current P/E = 17.5 * 5,500,000 / 8,000,000

Current P/E = 12.03

The Current P/E will remain the same next year

Next year P/E = Price * (New shares + Existing shares) / Next year earnings

12.03 = Price * (5,500,000 + 2,400,000) / 8,000,000 * 1.25

12.03 = Price * (7,900,000) / 10,000,000

12.03 * 10,000,000 = Price * (7,900,000)

Price = 120,300,000 / 7,900,000

Price = 15.22785

Hence, the price of shares next year will be $15.2279

5 0
3 years ago
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