Answer:
Option B- He acted in good faith.
Explanation:
The person who is trading with the other party owes the duty of care which is well stated in the negligence act. However in this case we saw that though the law was unclear but still the CEO acted in best interest of the public at large by consulting the attorney to shed light on the issue. Remember law is ethically minimum that is desired but in this situation the CEO was committed to comply with law that's why he consulted attorney. So saying that he acted in good faith is the best defense in the court.
Answer: Sensitive analysis
Explanation:
Sensitivity analysis this is a financial standard that is used to regulate how target variables can be affected based on changes in other variables which known as input variables. This is also known as what-if or simulation analysis. It is a way used in predicting an outcome of a decision under a known range of variables.
Answer:
By 110,000 the retained earnings reduced by the property dividend.
Explanation:
Retained Earnings: The retained earnings is that earnings which is left after all payments relating to the business expenses, shareholder dividend. The earnings which is to be retained so that it can come in use in near future.
For retained earning calculation, the stock market value is recorded when the date is declared not on distribution date.
So, the calculation is computed below:
As the 50,000 shares is given for every 10 shares. So, first we have to compute for 1 share which comes by dividing shares to number of shares i.e. 50,000 shares ÷ 10 shares = 5,000 for 1 share.
Now, multiply by market value which comes = 5,000 × $22 = $110,000.
So, by 110,000 the retained earnings reduced by the property dividend.
Answer:
$245
Explanation:
Surrender Charge is a fee on the withdrawal of fund invested in an annuity contract or mutual fund. This charge is placed to restrict or discourage the investor from withdrawing money from the fund.
In this question Sophia paid $25,000 for annuity contract and there are surrender charges as below:
First year surrender charges = 7%
Declines by 1% each year
Withdrawal limit without charge = 10% of Investment = 10% x $25,000 = $2,500
Withdrawal Amount = $6,000
Withdrawal over 10% = Withdrawal Amount - Withdrawal limit without charge
Withdrawal over 10% = $6,000 - $2,500
Withdrawal over 10% = $3,500
Surrender charges = Withdrawal over 10% x First year surrender charges
Surrender charges = 3,500 x 7%
Surrender charges = $245
