1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Rasek [7]
3 years ago
7

The outstanding bonds of Winter Time Products provide a real rate of return of 3.00 percent. The current rate of inflation is 2.

00 percent. What is the nominal rate of return on these bonds
Business
1 answer:
Delicious77 [7]3 years ago
4 0

Answer:

The nominal rate of return on these bonds is 5%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

So,  

Nominal interest rate=Real rate of return+Inflation rate

Nominal interest rate=3%+2%

Nominal interest rate=5%

You might be interested in
(Cash dividends) Marshall Pottery Barn is a privately owned importer of Mexican pottery and garden supplies. The firm plans on p
zhannawk [14.2K]

Answer:

A.The impact on the balance sheet after the payment of the dividends is a reduction in current asset-cash by $8580 as well as a drop in equity-specifically retained earnings by the same amount.

B.Total assets (book and market values) will decrease by $8580 and equity and liabilities on the other hand will also reduce by $8580.

A.The accounting entries in respect of the dividend payment will be :

Debit Retained earnings $8580

Credit Cash                                       $8580

Explanation:

The dividends of $1.43 gives $8580 in total i.e $1.43*6000 shares

The impact of the dividend payment will be in terms of reduction in cash available for daily operations and reduction in funds attributable to shareholders.

3 0
4 years ago
"A customer holds 10 ABC Jan 60 Call contracts. ABC Corporation is paying a 20% stock dividend. On the ex date, the contracts wi
Viefleur [7K]

Answer:

On the ex date, the contracts will show as:

10 ABC Jan 60 Calls

The customer must exercise call contracts to buy the stock prior to the Ex-Date

Explanation:

The reason is that if the customer is not exercising the call contracts then it will not be able to receive the stock dividend. Furthermore, the OCC doesn't adjust the contract because of the dividend announcement prior to exercise of contract. This means it will only adjust if the contract is exercised.

The settlement of the exercise takes around 2 business working days, hence the customer must exercise the option 2 days earlier to the ex-date.

3 0
4 years ago
AP Season tickets for the Dingos are priced at $320 and include 16 home games. An equal amount of revenue is recognized after ea
MissTica

Answer:i just want the points sorrry

7 0
3 years ago
Read 2 more answers
There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, a
Delicious77 [7]

Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.

Explanation:

A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.

The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.

7 0
3 years ago
Which financial institution is known as a cooperative association?
Serhud [2]

Answer:

<em>Credit Unions</em><em> </em>is known as a cooperative association.

hope it helps!

5 0
3 years ago
Other questions:
  • Raven Company has a target of $70,000 pre-tax income. The contribution margin ratio is 30%. What amount of dollar sales must be
    9·1 answer
  • A company recorded 2 days of accrued salaries of $2,150 for its employees on January 31. On February 9, it paid its employees $8
    8·1 answer
  • operation, 2,300 units were produced and 1,800 units were sold. Actual fixed costs are the same as the amount budgeted for the m
    12·2 answers
  • An S corporation earns per share before taxes. The corporate tax rate is​ 35%, the personal tax rate on dividends is​ 20%, and t
    6·1 answer
  • The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviatio
    7·1 answer
  • The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional inves
    7·1 answer
  • How to start a business
    10·1 answer
  • Today's most successful companies are including _____ directly in the product and service development process.
    7·1 answer
  • EvenFlo Pipes forecasts a small increase in sales next year. To achieve this growth in sales, however, the firm must purchase an
    9·1 answer
  • The classical view of the economy holds that transitions to full employment are relatively quick.1. Under what condition(s) can
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!