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Arada [10]
3 years ago
12

Morgan Pharmaceutical spends $50,000 this year in research and development for a new drug to cure liver damage. By the end of th

e year, management feels confident that the new drug will gain FDA approval and lead to higher future sales. What impact will the $50,000 spending have on this year's financial statements?
Business
1 answer:
kenny6666 [7]3 years ago
3 0

Answer:

The impact of spending $50,000 on the research and development for a new drug to to cure liver damage will increase the expenses of the Morgan Pharmaceutical in the years financial statements.

Explanation:

Morgan pharmaceutical is pending $50,000 on he research and development of new drug which can cure the liver damage, from this spending company is expecting that after they have successfully created new drug it will lead to the increase in sales , which will ultimately lead to increase in profits , which then would totally recover the initial cost incurred on research and development but until then these expenses would be shown in the current years financial statement as expenses, and thus would increase the total expenses of the company.

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Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt.
velikii [3]

Answer: $47.50

Explanation:

The price pr share given debt and the number of shares if the company had both an all equity structure and a mixed structure can be expressed as;

Price per Share = Debt Value / (Number of Shares under All-equity plan - Number of shares under mixed plan)

Price per share = 109,250 / (15,000 - 12,700)

= 109,250 / 2,300

= $47.50

4 0
4 years ago
Quality, personal attention, leadership, and respect are examples of what? A. A company's values B. A company's mission statemen
Sholpan [36]
These are description of A. A company's values.A mission statement is usually about what they are trying to accomplish in their business, possibly related to their products/services. An elevator pitch is more about selling their products as well. Employee morale is more dependent on working conditions like benefits, work/life balance, and trust in the executive team. The given in the question reflects individual values that a company wants to inculcate in its people.

7 0
4 years ago
Read 2 more answers
Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,700, and h
RSB [31]

Answer:

10.05%

Explanation:

Carter Pearson is a partner in event promoters

His beginning partnership balance is $55,700

His ending partnership balance is $62,700

His share of this year's partnership income is $5,950

Therefore his partner return on equity can be calculated as follows

= $5,950/$55,700+$62,700/2

= $5,950/$59,200

= 0.10050 × 100

= 10.05%

Hence his partner return on equity is 10.05%

5 0
3 years ago
g An individual has $20,000 invested in a stock with a beta of 0.8 and another $50,000 invested in a stock with a beta of 1.6. I
Free_Kalibri [48]

Answer:

1.37

Explanation:

The computation of the portfolio beta is shown below:

<u>Value                   Weight             Beta       Weighted Beta </u>

<u>of Investment    of Investment    (weight of value × beta) </u>

$20,000              0.2857           0.8       0.22856

$50,000               0.7143            1.6         1.14288

Total = $70,000     1                                  1.37

We simply multiplied the weight of investment with the beta of each investment so that the portfolio beta could come

7 0
4 years ago
I cant find the right answer:
Whitepunk [10]

Answer : $4938.80

A sinking fund is a term that can be broadly used to describe putting a fixed amount of money aside at regular intervals for a given time frame and investing this money at a given interest rate with an objective of saving a desired amount of money at the end of the time period.

In finance it's referred to commonly as an annuity payment.

For this question, we can use the formula for Future Value of an annuity to arrive at the answer.

FVA = P\left [ \frac{(1+r)^{n}-1}{r}\right ]

where

FVA = future Value of an annuity

P = periodic payment

r = interest rate per period

n = number of periods

The following information is given in the question:

FV = $120,000

Interest Rate = 8% p.a

No. of years = 5 years

No. of compounding periods in a year = 4

So,

i = \frac{Annual Interest rate}{number of compounding periods in a year}

i =0.02

n = {number of compounding periods in a year} * no. of years

n = 20 ( 5 * 4)

Substituting these values in the FVA equation, we have

120000 = P\left [ \frac{(1+0.2)^{20}-1}{0.02}\right ]

120000 = P\left [ \frac{0.485947396}{0.02}\right]

120000 = P * 24.2973698

P= \frac{120000}{24.2973698} = 4938.806175.


6 0
3 years ago
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