Answer:
$1,114.86
Explanation:
$1,000 in a 3 year CD
total amount received if CD cashed on maturity = $1,000 x (1 + 4%)³ = $1,124.86
total interest = $1,124.86 - $1,000 = $124.86
penalty = interest for 3 months = 4% x 3/12 = 1% ⇒ $1,000 x 1% = $10
total money received = principal + earned interest - penalty = $1,000 + $124.86 - $10 = $1,114.86
Answer:
C. Purchase of treasury stock
Explanation:
The purchase of treasury stock results in a change in the stockholder's equity and as such is recognized as a financing activity in the statement of cash flows.
For the other options, amortization expense is a non-cash item and is adjusted for in the net cash flows from operating activities.
Collection of notes receivable is a change in current assets hence it is reported under net cash flows from operating activities.
Sale of equipment is reported under net cash flows from investing activities.
Hence the right option is C. Purchase of treasury stock.
Answer:
b) Cut hours and workers in order to minimize costs
Explanation:
Rational decision making is the process by which a business manager analyses different factors and outcomes before choosing a particular line of action.
The manager will have to choose between alternative options that are available.
In the given instances only the option to cut hours and workers in a bid to reduce cost shows the manager made a decision to achieve a goal (cost reduction).
The other options do not define a clear business goal and a strategy to achieve it
Answer:
D. weak form of the efficient market hypothesis.
Explanation:
Weak form efficiency is also known as the random walk theory. According to this theory, past events do not have any effect on future prices. The individual supporting weak form efficiency advocates that the current value does not have any relationship with past information. In the above case, the investor finds that the past and the present situation is equivalent and therefore this proves to be the violation of the weak form efficiency.
Answer:
Payback period = 3.57 years; No, dont make the movie based on payback period of 2years
NPV=$1.479 million; Yes, make the movie based on NPV is positive
Explanation:
The movie will show sign of recovering after the end of the 3rd year.
Therefore, Payback period = 3 + (1.2/2.1)
Payback period = 3 + 0.57
Payback period = 3.57
No, I would not make the movie if i require a payback period of 2years.
NPV = -(10.8/1.108)+(4.8/1.108²)+(4.8/1.108³)+(2.1/1.108⁴)+(2.1/1.108⁵)+(2.1/1.108⁶)
NPV = -9.747+3.91+3.529+1.393+1.2575+1.136
NPV=$1.479 million
Yes, make the movie since NPV is positive.