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3 years ago

Please, make sure these are correct!

Business

1 answer:

Kitty [74]3 years ago

8 0

Answer:

1. C

2. B

3. C

Explanation:

1. Relevant costs are cost that influence management decision making. Relevant revenues must differ between alternatives

2. Opportunity cost is defined as the next best alternative. Between 2 options one is forgone and the other is taken up due to it being more valuable.

3. Avoidable costs are cost that can be avoided and they differ between alternatives.

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Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is C

sertanlavr [38]

Answer:

C. A smaller proportion of the last monthly payment will be interest, and a larger proportion will be principal, than for the first monthly payment.

Explanation:

I prepared a summary of an amortization schedule to explain this:

principal = $100,000

r = 8% annual

n = 360 months

first payment = $733.76: $666.67 are interests and only $67.09 reduces principal

second payment = $733.76: $665.95 are interests and only $67.54 reduces principal

last payment = $733.76: $4.90 are interests and only $728.86 reduces principal to $0

6 0

2 years ago

. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent

Amanda [17]

Explanation:

Primary market for securities is one that provides access to buy new new issues of stocks and bonds of a company. A good example of primary market is an Initial Public Offering (IPO), organized by a company that wants to sell it's shares for the first time to investors.

While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.

The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.

3 0

2 years ago

In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and depreciation expense of $178,000.

Firdavs [7]

Answer:

3.5

Explanation:

Computation for the firm’s times interest earned ratio

Revenues$ 2.95 million

Cost of goods sold$ 2.45 million

Depreciation expense$ 178,000.00

Book values of Debt outstanding$ 1.15 million

Interest rate8.00

First step is to calculate for the EBIT

Using this formula

EBIT= Revenues -(Cost of goods sold +Depreciation expense$ 178,000.00)

EBIT=$2,950,000-($2,450,000+$178,000)

EBIT=$2,950,000- $2,628,000

EBIT=$322,000

Second step is to find the Interest

Using this formula

Interest =Debt outstanding with book value ×Interest rate

Let plug in the formula

Interest =$1,150,000×8%

Interest =$92,000

Now let find the firm’s times interest earned ratio

Using this formula

Firm’s times interest earned ratio=EBIT/INTEREST

Where,

EBIT=$322,000

INTEREST=$92,000

Let plug in the formula

Firm’s times interest earned ratio=$322,000/$92,000

Firm’s times interest earned ratio =3.5

Therefore the firm’s times interest earned ratio will be 3.5

7 0

3 years ago

In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. It emerged fro

harina [27]

Reorganization

<u>Explanation:</u>

Revamping may allude to the restoration of an organization's funds as per a liquidation. It can likewise allude to any procedure that influences the duty structure of an organization. Furthermore, revamping may allude to a merger or obtaining or offer of an organization that changes the proprietorship, stock, or lawful and the executive's structure.

The redesign is a conventional court-managed procedure of rebuilding an organization's funds after chapter 11. As per insolvency laws, explicitly Chapter 11, an organization is given security from lenders during the timespan when the organization proposes and a liquidation court audits and affirms a particular revamping plan. The rearrangement is planned to reimburse lenders to the most extreme degree conceivable and to rebuild the organization's accounts, the executives, and tasks to keep a similar issue from emerging once more.

8 0

2 years ago

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an in

aivan3 [116]

Answer:

Answer not available.

Explanation:

I did this equation and i got 5,880, and i do believe that my work is correct but it may not be so.....

7 0

3 years ago