Answer:
B) Subtract them from the bank balance.
Explanation:
When you are adjusting your bank statement you must subtract any outstanding checks and add any deposits in transit.
In this case, the checks that were written at the end of December will probably be cashed during the next months, but the company must adjust their bank balance because they know that the checks will eventually be cashed, sooner or later.
Answer:
10.38%
Explanation:
From the question above a bank offers to lend an amount of $10,000 for a period of 1 year
The bank expects an interest of $250 to be paid every 4 months
= $250×4
= $1,000
Total amount of interest= $1,000
The first step is to calculate the nominal interest
= (1000/10,000)×100
= 0.1×100
= 10%
Therefore, the effective annual rate on the loan can be calculated as follows
= (1+r/m)^m-1
r = 10% , m = 4
= [1+(10/100)/4]^-1
=[ (1+0.1/4)^4]-1
= (1+0.025^4)-1
= (1.025^4)-1
= 1.1038-1
= 0.1038×100
= 10.38%
Hence the effective annual rate in the loan is 10.38%
Answer:
Explanation:
Corporate action in which one company buys the assets and obligations of another company and assumes control. - Acquisition
The joining of two or more business entities into a single entity. - Merger
Business entity owned, controlled and operated by a group of users for their own benefit. - Cooperative
Form of business in which one party gives another rights to sell its products or services and use its business format in a certain geographic area. - Franchise
Individual who has shared ownership in a partnership but takes no part in managing it and has limited liability. - Limited Partner
Entity taxed like a sole proprietorship or partnership but maintains benefits of incorporation like limited liability. - S Corporation
An unincorporated business with one owner. - Sole Proprietorship
Business entity with two or more owners who share management and profits or losses. - Partnership
Answer:
Reject,
Explanation:
When calculating the IRR, I got 16.6%, which is less than the wacc. This means that the rate of return is lower than what it costs 18% wacc.
I think the answer should be reject, less.
