The right to trade an investment over a certain period of time is called a(n):

Assume that ABC had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions durin

Lostsunrise [7]

Answer:

ABC's retained earnings balance at the end of April is $11,400

Explanation:

The addition to retained earnings in the current month is revenue derived from providing services to customers minus the expenses such as rent and employee salaries

Net income for the month=$2,000+$900-$800-$700=$1400

Retained earnings at month end=opening retained earnings+net income

Retained earnings at month end=$10,000+$1,400=$11,400

8 0

3 years ago

An agent's customer says that ABC Corporation is about to be bought out. The customer wishes to place an order to buy ABC common

tankabanditka [31]

Answer:

Explanation:

In this specific scenario, the best thing for the agent to do would be to bring the information to the attention of the firm's supervisory principal named to handle such matters in a Supervisory Procedures Manual. That is because inside information or insider trading is illegal and even though it does not need to be reported to the state securities Administrator, it should still be handled by the firm's supervisory principal in order for it to be handled correctly so that the firm does not get into trouble.

3 0

3 years ago

Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal

Korvikt [17]

Answer:

Results are below.

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point (units)= Total fixed costs / Weighted average contribution margin

Weighted average contribution margin= 0.2*33 + 0.5*22 + 0.3*41

Weighted average contribution margin= $29.9

Break-even point (units)= 4,544,800 / 29.9

Break-even point (units)= 152,000 units

Now, for each product:

Lawnmowers= 0.2*152,000=30,400

Weed-trimmers= 0.5*152,000= 76,000

Chainsaws= 0.3*152,000= 45,600

8 0

3 years ago

Golden Eye Co., a hi-tech satellite company, has asked you to value the company for possible cross-listing in the U.S. The compa

EastWind [94]

Answer:

Explanation:

Let's first determine the free cash flow of the firm

Particulars Years

1 2 3

EBIT 540 680 750

Tax at 36% (0.36*540) (0.36*680) (0.36*750)

Less: 345.6 435.2 480

Net Capital -

Spending 150 170 190

Change in NWC 70 75 80

Less: 125.6 190.2 210

The terminal value at the end of T =(3 years) is:

$= \dfrac{Free \ cash \ flow}{unlevered \ cost - expected \ growth \ rate}$

$= \dfrac{250}{0.1643-0.04}$

$= \dfrac{250}{0.1243}$

= 2011.26

Finally, the value of the firm can be computed as follows:

Years Free Cash Flow PVIF PV

1 125.6 0.6589 107.88

2 190.2 0.7377 140.31

3 210 0.6336 133.06

Terminal Value 2011.26 0.6336 1294.33

Value of the firm ⇒ $1655.58

5 0

3 years ago

Under the sales comparison approach to valuation, a subject property has 3 bedrooms, two bathrooms and is on a golf course. The

kondaur [170]

Answer:

The subject property should be valued at $760,000

Explanation:

Sales comparison approach to valuation in real estate values properties by comparing their similar characteristics, and the features are priced. The total value of a property is thus the addition of all features.

In the instance given, both properties have 3 bedrooms and 2 bathrooms and so using comparison theses features are equally priced at $690,000.

So the property with the golf course will have $690,000 added to the value of the golf course ($70,000).

That is $760,000.

8 0

3 years ago