Answer:
Check the answers below
Explanation:
- The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526
- Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days
- Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days
The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.
Answer:
Stockholders’ equity ≡ Assets −Liabilities
Explanation:
The Balance Sheet equation is also known as the Accounting equation. It can be written in 3 ways as :
Assets = Equity + Liabilities
or
Equity = Assets - Liabilities
or
Liabilities = Assets - Equity
Answer:
D. Predictor
Explanation:
The predictor are behaviors that tends to be repeated by a person, when you analyze them it implies a possible repetition of an action in the future. In this case of a person who did not stay with his past employer more than two years and changes job frequently, will tend to be with the company for a short time and change job again
Answer:
The correct answer is: The firm would present the order to the Options Clearing Corporation.
Explanation:
The Options Clearing Corporation or OCC works under the Securities and Exchange Commission (<em>SEC</em>) and acts as a guarantor and the issuer of options and futures contracts. The OCC is also in charge of clearing transactions for stock indexes, interest rate composites, and foreign currencies.
Given, Operating income = 7,200
Fixed expenses = 1800
Let the target sales be assumed to be X
Sales = 7200 + 1800 + 0.6*Sales
X = 7200 +1800 +0.6X
X-0.6X = 9000
0.4X =9000
X = 22,500
Target Sales = 22,500
Break even point = Fixed Costs/(Price -Variable cost)
Break even point = 1,800/(1-0.6) = 1,800/0.4 = 4,500
Break even point =4,500
Margin of Safety = (Target sales - break even point)/ Target Sales
Margin of Safety = (22,500-4,500)/22,500 = 18,000/22,500 = 0.8 = 80%
Margin of Safety =80%
