1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vodomira [7]
3 years ago
9

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly fro

m the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 13,000 shares at a time when the market price of the shares on the New York Stock Exchange was $15 per share. KL will record compensation expense asscoiated with the May purchases of:
A.) $24,200
B.) $0
C.) $195,000
D.) $23,400
Business
1 answer:
JulijaS [17]3 years ago
4 0

Answer:

d. $23,400

Explanation:

The computation of compensation expense is shown below:-

Total number of shares purchased = 13,000

Market price of share = $15 per share

Compensation expenses per share = issue price at 12% discount

= $15 × 12%

= $1.8

Total compensation expenses = Compensation expenses per share × Total number of shares purchased

= $1.8 × 13,000

= $23,400

So, for computing the compensation expenses we applied the above formula.

You might be interested in
Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $
mote1985 [20]

Answer: $28940

Explanation:

Their QBI deduction for the year goes thus:

Jason's QBI amount will be:

= $173000 × 20%

= $173000 × 0.2

= $34600

Paula's QBI amount will be:

= $28,300× 20%

= ($5660)

Therefore, their combined qualified business income will be:

= $34600 - $5660

= $28940

The overall limitation which is based on th modified taxable income will be:

= $247000 × 20%

= $49400

Since $28940 is lesser than $49400, their QBI deduction for the year is $28940

7 0
3 years ago
You want to buy a new car, but you can make an initial payment of only $1,200 and can afford monthly payments of at most $850. a
Leviafan [203]

Answer:

a. The maximum price you can pay for the car is <u>$33,477.87</u>.

b. The maximum price you can pay for the car is <u>$39,411.78</u>.

Explanation:

a. If the APR on auto loans is 12% and you finance the purchase over 48 months, what is the maximum price you can pay for the car? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can be determined as follows:

<u>Calculation of the Present Value (PV) of the monthly payments</u>

To calculate, the formula for calculating the present value of an ordinary annuity is used as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the monthly payments = ?

P = Monthly payment = $850

r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01

n = number of months = 48

Substitute the values into equation (1) to have:

PV = $850 * ((1 - (1 / (1 + 0.01))^48) / 0.01)

PV = $850 * 37.9739594934803

PV = $32,277.87

<u>Calculation of the maximum price you can pay for the car</u>

Given in the question is initial payment of only $1,200.

The present value of the monthly payments calculated above is $32,277.87.

Therefore, we have:

Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $32,277.87 = $33,477.87

Therefore, the maximum price you can pay for the car is <u>$33,477.87</u>.

b. How much can you afford if you finance the purchase over 60 months? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

This can also be determined as follows:

<u>Calculation of the Present Value (PV) of the monthly payments</u>

To calculate this, we use equation (1) in part (a) above, change number f months to 60 and proceed as follows:

PV = Present value of the monthly payments = ?

P = Monthly payment = $850

r = monthly interest rate = annual percentage rate (APR) / 12 = 12% / 12 = 1%, or 0.01

n = number of months = 60

Substitute the values into equation (1) to have:

PV = $850 * ((1 - (1 / (1 + 0.01))^60) / 0.01)

PV = $850 * 44.9550384062241

PV = $38,211.78

<u>Calculation of the maximum price you can pay for the car</u>

Given in the question is initial payment of only $1,200.

The present value of the monthly payments calculated above is $38,211.78.

Therefore, we have:

Maximum price = Initial payment + Present value of the monthly payments = $1,200 + $38,211.78 = $39,411.78

Therefore, the maximum price you can pay for the car is <u>$39,411.78</u>.

5 0
3 years ago
As owner of a retail franchise food store, Mary Grey purchases supplies based on specials advertised nationally throughout the f
drek231 [11]

Answer:

a. sharing information across the organization

Explanation:

A franchise is an organisation that is authorised to use the brand of another to conduct business. The parent company provides support such as information about the brand and their business activity, and training to the franchise.

In the given scenario Mary Grey was surprised to find customers asking for specials she hadn't been informed of in advance.

This is a failure in the function of sharing information across the organisation.

Ideally information.on products and various campaigns should be first communicated to the franchises before they get to the customer

4 0
3 years ago
Security a has an expected rate of return of 0.12 and a beta of 1.2. the market expected rate of return is 0.10, and the risk-fr
ivanzaharov [21]

The alpha of the stock is <u>6.6%</u>.

Alpha is also a degree of risk. With an alpha of - 15 means, the investment changed into far too risky given the go back. An alpha of 0 suggests that an asset has earned a return commensurate with the risk. Alpha of more than 0 means an investment outperformed, after adjusting for volatility. The process to calculate the alpha of the stock is: 0.12-[0.33+1.2(0.10+0.33)]= 0.066 = 0.066 * 100 = 6.6%

The expected return on monetary funding is the predicted fee of its return. it is a measure of the middle of the distribution of the random variable this is the return.

The risk-free rate is the rate of return offered by funding that consists of zero threat. Each investment asset contains a few levels of risk but is small, so the risk-free fee is something of a theoretical idea. In exercise, it is considered to be the interest rate paid on brief-term government debt.

Learn more about risk-free rates here brainly.com/question/19568670

#SPJ4

3 0
2 years ago
2. An organization's products and services are the driving force in accomplishing
Levart [38]
I believe the answer is B. False
4 0
3 years ago
Read 2 more answers
Other questions:
  • What is digital citizenship?
    10·1 answer
  • Washington state university lost its football game against notre dame in overtime, when the kicker missed. the kicker got death
    9·2 answers
  • At the first meeting, team members appear to have a difference of opinion regarding the direction of the project. Robin and Khal
    11·1 answer
  • The more _______________ you recieve; the more money you will likely earn in your career.
    14·2 answers
  • Susan leads a product innovation team. Her team meetings usually involve heated arguments, and many of the team members are know
    14·1 answer
  • Consulting firms are frequently characterized according to whether their primary skill is strategic planning or tactical analysi
    5·1 answer
  • By making minimum payments on a credit card, the consumer can​
    8·2 answers
  • What costs are considered “relevant” and which are considered “irrelevant “to a business
    10·1 answer
  • Suppose that the Lorenz Curve for the U.S. in 2019 lies completely below the Lorenz Curve for Switzerland in 2019. This implies
    6·1 answer
  • Lack hshshahababahjjss<br>​
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!