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3 years ago

If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

Business

1 answer:

aev [14]3 years ago

8 0

Answer:

If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero.

True

Explanation:

Reason being that it does not take any cost to secure such capital i.e no interest, then there is no cost for such capital

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Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of the British pound to be $1.

wariber [46]

Answer:

Sell pound forward

Explanation:

Forward rate = $1.51 *(1+2.65%) = 1.51 * 1.0265 = 1.55

Amount receivable in case of forward hedge = 100,000 * 1.55 = 155,000

Premium payable on put options = 100,000 * 0.3 = 3,000

Amount receivable in put options = 100,000 * 1.54 = 154,000

Net receivables in put options = 154,000 - 3,000 = 151,000

Conclusion: Higher amount is available in case of forward hedge. So, sell pound forward

5 0

3 years ago

Under which component of the business model would people and culture fall? Multiple Choice Key customer Value proposition Enviro

natulia [17]

Answer:

customer Value

Explanation:

The business models describe the rationale of organizations crate and deliver and capture values in terms of socio-economic and the cultural contexts and these involve the innovation.

This form a part of the business strategy and is used for a broad range of the formal and the informal decisions including the business process and the target customers.

7 0

3 years ago

Listed below are a few events and transactions of Kodax Company.

Arada [10]

Answer:

Jan. 2

Investment in Associate $526,000 (debit)

Cash $526,000 (credit)

Sept. 1

Cash $138,000 (debit)

Dividend Received $138,000 (credit)

June 1

Cash $349,600 (debit)

Dividend Received $349,600 (credit)

Dec. 31

Cash $96,500 (debit)

Investment in Associate $96,500 (credit)

Explanation:

When Kodax Company purchased 92,000 shares of Grecco Co she had significant influence (more than 20% of shareholding in Grecco Co). We call this an Investment in an Associate.

The Investment in Associate is a Financial Asset to the Holder (Kodax Company) and an Equity Element to the Investee (Grecco Co) and should be recorded appropriately as above.

3 0

3 years ago

Roy and Monica are married and will file a joint return. They have a daughter, Rachel, age 5. While Roy works and Monica looks f

garik1379 [7]

Answer:

Unfortunately, like Monica had no earned income and they're filing jointly, Roy and Monica can't claim the credit. The correct answer is B. US$ 0.

Explanation:

1. Let's review the information given to us to answer the question correctly:

Roy and Monica are married and will file a joint return.

While Roy works and Monica looks for work, Rachel stays at Wee Care.

Amount paid by child care in 2011 = US$ 1,500

Roy's earned income = US$ 24,000

Monica's earned income = US$ 0

2. What is the amount of their child and dependent care credit?

IRS, on publication 503, related to Child and Dependent Care Expenses is crystal-clear. Taking from the official document, "You Must Have Earned Income . To claim the credit, you (and your spouse if filing jointly) must have earned income during the year."

Unfortunately, like Monica had no earned income and they're filing jointly, Roy and Monica can't claim the credit.

3 0

3 years ago

Business Plan/Legal Software, Plan Magic Business, and Ultimate Business Planner are software programs designed to help you

balu736 [363]

The correct answer is letter A, determine the basic structural elements of your business plan.

These programs are designed to give you a strong foundations as to what you need to do in your business, what you need to prioritize, and what you need to strengthen or isolate. These programs are all forms of technology that aid and make your life in business easy and quick.

5 0

3 years ago