Given that <span>Java Jane's first coffeehouse was very successful due to the unique flavors,
on-site baked goods, and inviting ambiance. the owner, jane phillips,
decided to franchise her operation when she was approached by several
interested investors.
The type of marketing system Java Jane's has
most likely adopted is </span><span>a contractual marketing system.</span>
Answer:
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
Explanation:
Current price of gold=$1,400 per ounce
Forward price=$1,500
The arbitrageur can either pay the forward price or borrow $1400 and pay the interest of 4% in a year. Consider option 1 paying the forward price of 1500
Option 1
Since there are no additional costs, the total cost for buying the gold=forward price=$1,500
Option 2
If the arbitrageur borrows the 1400 to pay for the gold now, then pay the interest in 1 year;
The total cost=Amount borrowed+interest accrued in 1 year
Total cost=1400+(4%×1400)
1400+((4/100)×1400)
1400+56=$1456
Since there are no additional costs, option 2=$1456
If we compare option 1 to option 2, we notice that option 2 is slightly cheaper than option 1 by $44
(Option 1-Option 2)=(1500-1456)=$44
The arbitrageur should borrow money at 4% per annum since it is cheaper than paying the forward price for delivery
Answer:
The land should be reported in the financial statements at $40,000
Explanation:
At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price
Since in the question, the land was purchased at $40,000 and moreover, it is assessed for the tax purpose for $27,000 and by other appraisers it was valued at $48,000 plus there is an offer of cash payment for $46,000
But at the time of recording, the balance sheet would show at the purchase price i.e $40,000
Answer:
Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.
