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2 years ago

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

1 answer:

6 0

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?
<span>
It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.</span>

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Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b

OlgaM077 [116]

Answer:

$14,837

Explanation:

Calculation for what The adjusted cash balance should be

Bank balance$14,237

Add Deposit in transit$4,500

Less Outstanding checks ($3,900)

Adjusted bank balance$14,837

($14,237+$4,500-$3,900)

Book balance$13,162

Less Bank service fees ($50)

Add Note collected $1,725

Adjusted book balance$14,837

($13,162-$50+$1,725)

Therefore The adjusted cash balance should be:

$14,837

8 0

2 years ago

Megan's salary for three consecutive years, along with other values, are presented in the table below.Year

garik1379 [7]

Answer:

242.65

Explanation:

Data provided in the question:

year 2011 2012 2013

Salary $65,000 $72,000 $76,000

Consumer Price Index 226 230 235

Real Interest Rate 2.5% 2.7% 1.8%

Nominal interest rate for 2013 = 7.3%

Now,

Rate of inflation for 2013 = Nominal rate - Real rate

= 7.3% - 1.8%

= 5.5%

Therefore,

CPI in 2013 = Consumer Price Index in 2012 × (1 + inflation )

= 230 × ( 1 + 0.055 )

= 242.65

3 0

3 years ago

On January 1, 2004, Kay Inc. issued its 10% bonds in the face amount of $400,000, which mature on January 1, 2014. The bonds wer

DaniilM [7]

Answer:

Unamortized discount is $43,700

Explanation:

Unamortized bond discount=original bond discount-amortization to date

original bond discount is $46,000

Amortization =interest payable-interest expense

interest payable=$400,000*10%*6/12

=$20,000

Interest expense=$354,000*10%*6/12

=$17,700

amortization of discount=$20,000-$17,700

=$2300

unamorized bond discount=$46000-$2300

=$43,700

The unamorized bond discount at the end of the first six months is $43,700

3 0

2 years ago

Luke Corporation issued at a premium of $5,000 a $100,000 bond issue convertible into 2,000 shares of common stock (par value $2

In-s [12.5K]

Answer:

Face Value of Bonds = $100000

Unamortized Premium = $2000

Conversion of Equity Shares = 2000 * $20 = $40,000

Paid in Capital in Excess of Par = $100000 + $2000 - $40000 = $62000

Journal Entries

Account Title & Explanation Debit Credit

Bond Payable Account $100000

Unamortized Premium $2000

Common Stock $40000

Paid in Capital in Excess of par $62000

(To record conversion of Bonds)

8 0

2 years ago

Katlyn Williams owns a company that makes specialized components for the aerospace industry. Her most important customer is a co

omeli [17]

Answer:

Need to accommodate the growth of a key customer.

Explanation:

In the given scenarios Katlyn is motivated to keep her company growing because her most important customer is a company that is growing at a rate of 33% per year.

To satisfy the customer needs for specialised components of aerospace equipment, Katlyn's company must also grow in output or they will not be able to satisfy the customer's need.

This demonstrates need to accommodate the growth of a key customer.

7 0

2 years ago

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