Answer:
c. $215,000
Explanation:
The computation of the amount charged to income is shown below:
But before that first we have to determine the book value as on Jan 2024 which is
Total patent cost
= $200,000 + $50,000
= $250,000
Amortized cost till year 2024 is
= ($250,000 ÷ 10 years) × 3 years
= $75,000
The three years is counted from 2021 to 2024
Now
Book value on Jan 2024 is
= $250,000 - $75,000
= $175,000
So,
Amount charged to income is
= $175,000 + $40,000
= $215,000
Answer:
The answer is: Stock markets reflect all available information about the value of stocks
Explanation:
Efficient market hypothesis (EMH) is an investment theory about stock markets where the price of stocks is always the fair market value of the stocks. It argues that it is impossible for someone to determine when stocks are either undervalued or overvalued. So all the technical and fundamental analysis techniques are useless.
Answer:
$1,138.92
Explanation:
Current bond price can be calculated present value (PV) of cash flows formula below:
Current price or PV of bond = C{[1 - (1 + i)^-n] ÷ i} + {M × (1 + i)^-n} ...... (1)
Where:
Face value = $1,000
r = coupon rate = 7.2% annually = (7.2% ÷ 2) semiannually = 3.6% semiannually
C = Amount of semiannual interest payment = Face value × r
C = $1,000 × 3.6% = $36
n = number of payment periods remaining = (12 - 1) × 2 = 22
i = YTM = 5.5% annually = (5.5% ÷ 2) semiannually = 2.75% semiannually = 0.0275 semiannually
M = value at maturity = face value = $1,000
Substituting the values into equation (1), we have:
PV of bond = 36{[1 - (1 + 0.0275)^-22] ÷ 0.0275} + {1,000 × (1 + 0.0275)^-22}
PV of bond = $1,138.92.
Therefore, the current bond price is $1,138.92.
Answer: The answer is given below
Explanation:
A best-cost strategy is a strategy that is used by companies as they focus on low cost in order to give their customers better value for the money spent on the purchase of goods or services from them. The goal of this strategy is to keep the prices and costs lower when compared with the other competitors that offer similar products.
This strategy can be very successful in retail stores. Retail stores offer similar products to their competitors and using this strategy could help in making the store get more customers and hence push up its income.
For this strategy to work in such industry, firstly, the company will need to study its market very well, get to know its competitors, have a good working relationship with the manufacturers of different products, and have a friendly and amazing staffs who know what is and expected of them. With all these in place, success will be achievable.
An example of a firm in Jacksonville that is following a best cost strategy is
McDonald. The company over the years, has been successful and laid s foundation of offering fast-food meals that are of low prices and affordable.
