Answer: It is important to establish limits through the partnership agreement, because by trust there could be disagreements in the future, some ideas for this agreement are the following:
I. The dividends resulting from the coffee shop profits must be distributed equally and will correspond to the amount resulting from discounting sales less costs and expenses.
II. Personal loans will not be allowed to the owners with the money taken from the coffee shop box.
III. It will not be allowed to consume the products of the coffee shop without paying what corresponds.
IV. Both owners will have the same rights to perform the duties of a manager.
Answer:
The cash payments for September are $646000
Explanation:
The cash payments for merchandise are divided into to parts. The previous month's 70% payments and this month's 30% payments. Thus, the cash payments for the month of september will be 70% for AAugust purchases and 30% for september's purchases.
Thus the cash payments for merchandise will be,
Cash Payments = 0.7 * 610000 + 0.3 * 730000 = $646000
Answer:
Present value (PV) = $1,000
Interest rate (r) =8% = 0.08
Number of years (n) = 18 months = 1.5 years
No of compounding periods in a year = 4
Future value (FV) = ?
FV = PV(1 + r/m)nm
FV = $1,000(1 + 0.08/4)1.5x4
FV = $1,000(1 + 0.02)6
FV = $1,000 x 1.1262
FV = $1,126
Explanation:
The amount to be received in 18 months is $1,126. This is obtained by compounding the present value at 8% compounded quarterly for 18 months. The formula to be applied is the formula for future value of a lump sum(single investment).
If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>
Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.
Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.
Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.
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Answer: c. No, since the MC and AVC curve intersect at the minimum of AVC
Explanation:
Marginal cost is the cost of producing one extra unit of a product while average cost is the average of all the units produced so far. Therefore, when Marginal cost is low, it pulls the average costs down with it because it will be lower than the Average costs.
However, as Marginal costs start to rise, average cost will still be low because it is taking into account the lower previous marginal costs. Marginal cost will then keep rising until it intersects the average costs at it's minimum. Once this happens Average cost will start being pulled up because the current high costs will on average eclipse the current low costs.