Answer:
Medium of exchange
Explanation:
Fresh fish is not an effective form of money. Fresh fish lacks medium of exchange, which makes it ineffective.
Answer:
7.52%
Explanation:
First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:
=rate(nper,pmt,-pv,fv)
the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times
pmt is the amount of annual coupon payment which is $106
pv is the current price of the bond at $860
fv is the face value of the bond at $1000
=rate(20,106,-860,1000)=12.54%
The yield to maturity on the new issue is 12.54% as well
after-tax cost of debt=pretax cost of debt*(1-t)
pretax cost of debt is yield to maturity of 12.54%
t is the tax rate of 40% or 0.4
after-tax cost of debt=12.54%
*(1-0.4)=7.52%
Answer:
Part a
2021 = $7,000
2022 = $6,000
Part b
2021 = $5,250
Explanation:
Sum of the year`s digit method provide for higher depreciation in early life of the asset with lower depreciation in later years.
Step 1
<em>Some of digits calculation :</em>
Year Digits
2021 7
2022 6
2023 5
2024 4
2025 3
2026 2
2027 1
Total 28
Step 2
<em>Determine the depreciable amount</em>
Depreciable amount = Cost - Residual value
= $40,000 - $12,000
= $28,000
Step 3
<em>Depreciation expense calculations</em>
2021 = 7 / 28 x $28,000 = $7,000
2022 = 6/ 28 x $28,000 = $6,000
assuming the equipment was purchased on March 31, 2021
2021 = $7,000 x 9/12 = $5,250
Answer:
The correct answer is (2)The workers on shop floor lack the autonomy to stop the manufacturing on their own initiative.
Explanation:
The company operates on a push system, where products are made and inventory built up based on best-guess forecasts.
The push system of inventory control involves forecasting inventory needs to meet customer demand. Companies must predict which products customers will purchase along with determining what quantity of goods will be purchased.
So, from the given options, the correct answer is (2)The workers on shop floor lack the autonomy to stop the manufacturing on their own initiative
