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3 years ago

Multiple choice!

Business

1 answer:

kodGreya [7K]3 years ago

7 0

Answer:

Spillover cost.

Explanation:

Spillover cost refers to those costs or changes in the value of a certain good that are caused by issues external to the intrinsic characteristics of said good. Thus, for example, external influences such as limitations on oil extraction or the development of electric cars can generate a massive drop in the prices of conventional gasoline cars. Another clear example of this situation is the one described in the question, where a negative change in a certain neighborhood can lower the prices of the houses found there.

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Muriel buys a $2,000 savings bond with a 4% coupon and 20 years to maturity. How much interest will she earn over the life of th

irina1246 [14]

To solve: use the simple interest calculation.

interest earned over the life of the bond = (bond price)(coupon rate)(years)
= (2,000)(0.04)(20)
= $1,600

So after 20 years on a 4% coupon bond starting at $2,000 Muriel will earn $1,600 in interest.

3 0

3 years ago

Prepare journal entries to record the issuance of the bonds and the retirement of bonds. (Show computations and round to the n..

Vikentia [17]

Answer:

issuance entry:

cash 2,850,000 debit

discount on BP 150,000 debit

bonds payable 3,000,000 credit

--to record issuance--

bonds payable 600,000 debit

loss on redemption 30,000 debit

interest expense 56,250 debit

cash 662,250 credit

discount on BP 24,000 credit

--to record redemption ---

Explanation:

proceeds at issuance : $3,000,000 x 95/100 = 2,850,000

the difference will be the discount.

Now, when the bonds are retired we have to check the weight:

3,000,000 --> 120,000

600,000 --> 120,000/3,000,000 x 600,000 = 24,000

cash outlay 600,000 x 101/100 = 606,000

loss redemption

we pay 606,000

for bonds which are worth: 600,000 - 24,000 = 576,000

The loss is the difference.

then, we calcualte the accrued interest:

principal x rate x time

3,000,000 x 7.5% x 3/12 = 56,250‬

this will be an interest expense

as well as an additional cash outlay

5 0

4 years ago

You are a senior manager at a large consumer goods company. The company president has noticed that recent college graduates and

Lostsunrise [7]

Answer:

The president realizes that you are acting as a mentor to junior employees.

Explanation:

Mentors are very experienced people that provide advice to less experienced peers to help them reach their full potential, make wise decisions and advance in their careers. They become role models to others as they have experienced success in their fields.

A good mentor is characterized by their leadership, knowledge and willingness to help others in their professional development. They are able to effectively transmit their expertise and provide feedback to others on how they can improve.

8 0

3 years ago

The consumer decision making process is comprised of these five steps: Need recognition, Environmental Scanning, Evaluation of a

Goshia [24]

Answer:

need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior

Explanation:

In simple words, A consumer refers to an individual who acquire a resource in exchange of money or some other resource, to satisfy his or her needs.

The customer decision-making process involves consumers becoming aware of and identifying their interests, gathering input about how to better meet those needs, weighing alternative possible choices, making a buying judgment as well as evaluating their investment.

5 0

3 years ago

Ms. Pay, who has a 40.8 percent marginal tax rate on interest income (37 percent income tax 3.8 percent Medicare contribution ta

Butoxors [25]

Answer:

After tax cash flow $44,281.60

After tax cash flow ($30,518.40)

After tax cash flow $8856.32

Explanation:

In the first case when the interest income of $74,800 ,the after-tax cash flow would be taxed as follows"

before tax cash flow $74,800.00

tax at 40.8%*$74,800 ($30,518.40)

After tax cash flow $44,281.60

If the entire interest income is re-invested after tax cash flow is computed thus:

before tax cash flow $0

tax at 40.8%*$74,800 ($30,518.40)

After tax cash flow ($30,518.40)

If the entire interest income represents the original issue discount,which is the difference between the face value and the issue price,after tax cash flow is computed thus:

The OID is taxable as if it accrues over the duration of the investment(bonds),hence a portion of the OID would be assessed to tax each year (assume the duration of investment is 5 years)

Annual portion of OID=$74,800/5

before tax cash flow $14,960 .00

tax at 40.8%*$74,800 ($6103.68 )

After tax cash flow $8856.32

After tax cash flow $44,281.60

3 0

3 years ago