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3 years ago

Presented below is information related to Lexington Real Estate Agency.

Business

1 answer:

Ber [7]3 years ago

3 0

Answer:

Oct 1

DR Cash............................................................................$20,000

CR Common Stock.........................................................................$20,000

Oct 2. No entry required

Oct 3

DR Office Furniture .....................................................$2,300

CR Accounts Payable................................................................$2,300

Oct 6

DR Accounts Receivable.............................................$3,600

CR Service Revenue - Realty services...................................$3,600

Oct 27

DR Accounts Payable ..................................................$850

CR Cash .......................................................................................$850

Oct 30

DR Salaries Expense ....................................................$2,500

CR Cash ..........................................................................................$2,500

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Answer:

D) demographic

Explanation:

The market is been divided as per income, race, age, religion and family size, this is usage of the demographic segmentation.

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4 years ago

The Pecking Order Theory of capital structure implies that (a) high-risk firms will end up borrowing more. (b) firms prefer inte

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Answer:

The correct answer is letter "D": firms prefer debt to equity when external financing is required.

Explanation:

According to the Pecking Order Theory, managers rely on three sources from where to obtain resources at the moment of investing. The order they select to choose between one or another is retained earnings, debt, and equity financing at last. This approach was spread by American Economy Professor Stewart Myers (born in 1940) and Chilean consultant Nicolas Majluf (born in 1945).

Therefore, debt is preferred to equity at the moment of financing the company's projects.

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3 years ago

The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a

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Answer:

Yes; $2.0 million

Explanation:

Yes, SHOULD YOU GO AHEAD and do so reason been that the TOTAL LOSS would then be the amount of $3 million instead of the amount of $5 million which therefore means that The MOST YOU SHOULD PAY in order to complete the development would be the amount of $2 million calculated as ($5 Million-$3 Million).

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3 years ago

Mega skateboard supplier had net sales of $2.8 million, its cost of goods sold was $1.6 million, and its net income was $0.9 mil

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The gross margin ratio is also sometimes referred to as the gross profit percentage or the gross profit margin. To solve for its value, we divide the net profit of a certain company or group by its net sales. From the given above,
gross profit margin = $0.9 million / $2.8 million = 0.32

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3 years ago

Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.85% Economy Fund charges a front-end load of 2%, bu

erma4kov [3.2K]

ANSWER:

1) Loaded-Up Fund = $ 108.15

Economy Fund = $ 107.65

2) Loaded-Up Fund = $187.16

Economy Fund = $207.79

3) 1.2953years = 15.54months, approximately 16months

EXPLANATION:

Labelling of values;

Loaded-Up Fund 12b-1 fee (b1) = 1%

Loaded-Up Fund front end load (f1) = 0%

Loaded-Up Fund expense ratio (e1) = 0.85%

Economy Fund 12b-1 fee (b2) = 0%

Economy Fund front end load (f2) = 2%

Economy Fund expense ratio (e2) = 0.15%

Loaded-Up Fund returns is also the Economy Fund returns = r1 = r2 = 10%

Therefore;

Returns from a fund = (1 - f) × (1 + (r - b - e))^n............(1)

Where;

Investment final value = Investment amount × (1 + return from the fund)

Therefore, equation becomes:

Investment amount × (1 - f) × (1 + (r - b - e))^n............(2)

(1)

Using equation 2

Investment amount = $100

Number of years = n = 1

Substitute the given values for

LOADED-UP FUND:

Investment final value = $100 × (1 - 0%) ×(1 + (10% - 0.1% - 0.85%))^1

= $108.15

ECONOMY FUND:

Investment final value = $100 × (1 - 2%) × (1 + (10% - 0% - 0.15%))^1

= $107.65

Therefore the investment of $100 in one year will become;

Loaded-Up Fund = $ 108.15

Economy Fund = $ 107.65

(2)

Using equation 2

Investment amount = $100

Number of years (n) = 8

Substitute the given values for

LOADED-UP FUND:

Investment final value = $100 × (1 - 0%) ×(1 + (10% - 0.1% - 0.85%))^8

= $187.16

ECONOMY FUND:

Investment final value = $100 × (1 - 2%) × (1 + (10% - 0% - 0.15%))^8

= $207.79

Therefore the investment of $100 in 8 years will become;

Loaded-Up Fund = $187.16

Economy Fund = $207.79

(3)

To find n, we equate loaded-up fund with economy fund.

Therefore;

$100 × (1 - 0%) ×(1 + (10% - 0.1% - 0.85%))^n = 100 × (1 - 2%) × (1 + (10% - 0% - 0.15%))^n

Solving out gives;

100 × (1.0815)^n = 98 × (1.0985)^n

Cross multiplying gives;

100/98 = (1.0985/1.0815)^n

Taking the natural log of both side;

n × ln(1.0985/1.0815) = ln(100/98)

Therefore

n(0.015597) = 0.020203

n = 0.020203 ÷ 0.015597 = 1.295324

n = 1.3 years

To check n in months, 1.295324 × 12 = 15.59 which will be approximately 16months

7 0

3 years ago