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Scrat [10]
3 years ago
6

The cash flows associated with common stock are more difficult to estimate than those related to bonds because the stock has a r

esidual claim against the company versus a contractual obligation for a bond. True or False?
Business
1 answer:
Dafna11 [192]3 years ago
5 0

Answer:

The answer is True.

Explanation:

Common stock holders is the firm's owner. Unless their voting rights is large enough, they will not have the power to demand certain dividend amount be paid out every year as it is at the firm's board of management authority. Moreover, common stock has perpetual lifetime which only ends when the company shut down and has residual claim against the company, thus, the recovery of initial investment in common stock is harder to estimate as it is usually the stock's price at exit time.

For bond, it is a contractual obligation, thus interest payment and face value repayment have been stated very clear in amount and in time and these payments are put into priority over common stock in the event of default.

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Higgins Company plans to incur $380,000 of salaries expense if a capital project is implemented. Assuming a 40% tax rate, the sa
AlexFokin [52]

Answer:

d) $228,000 outflow

Explanation:

Calculation for the amount that the salaries should be reflected in the analysis

Using this formula

Salaries=Salaries expense-(Salaries expense*Tax rate)

Let plug in the formula

Salaries=$380,000-($380,000*40%)

Salaries=$380,000-$152,000

Salaries=$228,000 Outflow

Therefore salaries should be reflected in the analysis by a: $228,000 outflow

8 0
3 years ago
Shopping online allows customers to compare prices of many goods and services. This technology will likely:
Murljashka [212]

Answer: d. cause businesses to increase their focus on nonprice aspects of their promotional message.

Explanation: The internet has made it possible for shopping to be done online. Businesses will most likely increase their focus on nonprice aspects of their promotional message as a result of the technology. This would be largely due to an increase in price competition as more and more consumers have instant access to prices from all around the world and in response to this, nonprice competition is more likely to be on the rise.

4 0
3 years ago
Journalize Period Payroll The payroll register of Chen Heritage Co. indicates $3,000 of social security withheld and $750 of Med
bearhunter [10]

Answer:

Following are the journal entries recorded for the payroll of current time period;

Debt: Salary Expense = $50,000

Credit: Tax Payable by Medicare = $750

Credit: Deduction Payable For Employee Saving = $2,550

Credit: Income Tax payable for Federal Employees = $9,000

Credit: Tax payable for Social Security = $3,000

Credit: Salaries payable to Employees = $34,700

6 0
3 years ago
After the death of her husband, Gina Baker, 35, received a check for $350,000 from a life insurance company. Gina has two small
rosijanka [135]

Answer:

b. safety

Explanation:

"it wants to make sure are taken care of in the future"

This means it prefers a safety investment.

The beta of the investment should be lower to reduce the deviation from the expected market return

The liquidity is not as important right now as the children are young. Once they start highschool or collegue Gina will need to make higer withdrawals. Plus, she want's to look into the future, this also is a clear inshight that Gina do not require liquidity right now

The market risk a global variance Gina cannot reduce the risk inherent to the market.

The business failure would be associate with safety which is a most suitable term.

7 0
3 years ago
Kelsey owns a cottage in which her aunt Matilda lives. Kelsey wants to insure that Matilda can live in the cottage for the remai
Inessa [10]

Answer:

Kelsey owns a cottage in which her aunt Matilda lives.  

Kelsey wants to insure that Matilda can live in the cottage for the remainder of her life, but when Matilda dies, title to the property will return to Kelsey.

Kelsey can accomplish this objective by granting Matilda a Drag and Drop the appropriate terms into the spaces provided

A life tenant has the OBLIGATION to keep the property in good repair and to pay property taxes.

The two types of CURRENT ownership are tenancy in common and joint tenancy.  

Concurrent ownership MENTIONATED can also be held in a tenancy by the entirety or as community property.

In most states, it is PRESUMED that a co-tenancy is a tenancy in common.

With a joint tenancy a deceased joint tenant's interest IS TRANSFERED to the surviving joint tenant or tenants.

The right of survivorship DISTINGUISHED a joint tenancy from a tenancy in common.

When a joint tenant transfers her or his rights to another without the consent of the other joint tenants, doing so TERMINATED the joint tenancy.

Explanation:

Kelsey and her aunt Matilda, they made an agreement so that Matilda can usufruct the house while she lives, and when she dies she becomes Kelsey.

3 0
3 years ago
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