If investors sell their stocks and increase their money holdings due to a bad economy then is the demand or supply affected?

Evaluate this statement: "If the yield of two bonds having equal maturity changes the same amount, the price of the lower coupon

AfilCa [17]

Answer:

FALSE

Explanation:

As the lower coupon means there is less amount of cash subject to variation of interest rate.

We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

8 0

3 years ago

Why don't most tax expenditures help much if your federal tax bill is zero? You don't qualify for tax breaks if your federal tax

MakcuM [25]

Answer: Most tax breaks reduce taxable income, but reducing taxable income below zero does not reduce the tax bill.

Explanation:

Tax breaks can be used to reduce your taxable income sometimes all the way to zero. This however simply means that you don't have to pay income tax but does not mean that there won't be other taxes to pay.

Because of these additional taxes left to pay, a person will still pay certain taxes even if their taxable income is below zero. Tax expenditures therefore do not help much with a federal tax bill of zero.

6 0

3 years ago

repare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the

Umnica [9.8K]

Question Completion:

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,509,000 567,040 941,968 1,036,000 $ (94,040) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Division Central $389,000 $600,000 $520,000 East West Sales Variable expenses as a percentage of sales Traceable fixed expenses 27% 36% $283,000 $336,000 $203,000

Prepare a contribution format income statement segmented by divisions Division Total Company East Central West

The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 19%.

Answer:

Wingate Company

a. Contribution format income statement segmented by divisions

Division Total Company East Central West

Sales $ 1,509,000 $389,000 $600,000 $520,000

Variable expenses 567,040 217,840 162,000 187,200

Contribution margin 941,960 $171,160 $438,000 $332,800

Traceable fixed expenses 822,000 $283,000 $336,000 $203,000

Non-traceable fixed expense 214,000

Net operating income (loss) $ (94,040) ($111,840) $102,000 $129,800

b. If the marketing department's proposal is implemented, the net operating loss will decrease by $38,232, i.e from $94,040 to $55,808.

Explanation:

a) Data and Calculations:

Wingate's most recent monthly contribution format income statement:

Sales $ 1,509,000

Variable expenses 567,040

Contribution margin 941,968

Fixed expenses 1,036,000

Net operating income (loss) $ (94,040)

Additional information:

Division Central East West

Sales $389,000 $600,000 $520,000

Variable expenses as a

percentage of sales 56% 27% 36%

Traceable fixed expenses $283,000 $336,000 $203,000

Increase in Division West's fixed expenses by $25,000

Expected increase in Division West's sales = 19%

Contribution format income statement segmented by divisions

Division Total Company East Central West

Sales $ 1,509,000 $389,000 $600,000 $520,000

Variable expenses 567,040 217,840 162,000 187,200

Contribution margin 941,968 $171,160 $438,000 $332,800

Traceable fixed expenses 822,000 $283,000 $336,000 $203,000

Non-traceable fixed expense 214,000

Net operating income (loss) $ (94,040) ($111,840) $102,000 $129,800

Based on new proposal:

Contribution format income statement segmented by divisions

Division Total Company East Central West

Sales $ 1,607,800 $389,000 $600,000 $618,800

Variable expenses 602,608 217,840 162,000 222,768

Contribution margin 1,005,192 $171,160 $438,000 $396,032

Traceable fixed expenses 847,000 $283,000 $336,000 $228,000

Non-traceable fixed expense 214,000

Net operating income (loss) $ (55,808) ($111,840) $102,000 $168,032

5 0

3 years ago

An insurance policyholder must pay a _______________ for each ______________ service, before insurance covers the rest.

dusya [7]

Answer:

D. copayment; insured

Explanation:

When the person takes insurance than the person called as insurance policyholder who is holding his or her own policy so he or she must have to pay the copayment i.e. fixed amount for the service covered prior to receiving the service for each insured service prior to the insurance that covers the rest

Therefore the correct option is D

And, the rest ones are incorrect

5 0

3 years ago

The process of assimilating mass-media advertisements with other promotional elements such as direct marketing, public relations

VMariaS [17]

Answer: Integrated Marketing communication.

Explanation:

Integrated marketing communication is a form of marketing strategy, where a business brand sends out several interconnected adverts and promotions, which all function to highlight the need for a consumer to purchase a certain product/service.

4 0

3 years ago