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Alexus [3.1K]
3 years ago
9

Klein Company issues a four-year note in exchange for a license agreement with fair value of $100,000. The contract requires pay

ment of $27,956 at the beginning of each of the four years. The approximate effective interest rate associated with the notes payable is:_____.
a. 10%.
b. 8%.
c. 6%.
d. 7%.
Business
1 answer:
aliina [53]3 years ago
4 0

Answer:

b. 8%.

Explanation:

The effective interest rate can be determined using the rate function in excel as shown below:

=rate(nper,pmt,-pv,fv,type)

nper=period of license=4 years

pmt=27956

pv=-100000(the initial value of the license)

fv=0

type=1(1 for beginning payments, 0 for end of the period payments)

=rate(4,27956,-100000,0,1)

rate=8.00%

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Answer:

b. SaaS

Explanation:

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Therefore the option b is correct

3 0
3 years ago
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Answer:

Explanation:

Cash: generally classify cash as a cuffent asset Cash conststs of coins, currency, and available on deposit at the bank Cash the most liquid of as*ts, is standard medium of exchange and fre basis for meas_wtng and accountmg for all other items

Cash quivalents: cash equivalents are short-term, highly liquid investments that are both readily convertible to known amount of cash.

Accounts Receivable: Receivables are clams held against customers and others for money, goods, or services

Short term investments: Investments for one year or less called as short-tem investments

Long-term assets: Long-term means more than one accounting cycle period

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a) Coins and currency                                                                   Cash

b) U S treasury (government) bonds                                            Cash equivalent

c) Certificate of deposit (matures in 5 months)                           Short term investment

d) Cash in a bank that is in receivership                                     Account receivable.

e1) NSF check ( Returned with bank statement)(if uncollectible)                           A loss if uncollectible

e2) NSF check ( Returned with bank statement)(if collectible)                           Accounts receivables

f1) Deposited in foreign bank (exchangeability limited )(if not expendable)               Other assets, if not expendable.

f2) Deposited in foreign bank (exchangeability limited )(if expendable)       Cash if expendable for goods and services in a foreign country

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g2) Postdated checks (if collection expected within beyond year)                                                                    long term investments

8 0
3 years ago
When computing yield to maturity, the implicit reinvestment assumption is that the interest payments are reinvested at the:
Vlad1618 [11]

Answer:

The remaining part of the question is:

The interest payments are reinvested at the:

a.Coupon rate.

b.Current yield.

c.Yield to maturity at the time of the investment.

d.Prevailing yield to maturity at the time interest payments are received.

e.The average yield to maturity throughout the investment period

<u>Correct Answer:</u>

b.<u>Current yield. </u>

<u></u>

Explanation:

7 0
3 years ago
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<h3>What is unaccredited investors?</h3>

Any investor who does not meet the Securities and Exchange Commission's income or net worth requirements is considered a non-accredited investor (SEC).

Because of the limitations described above, many companies discover that raising funds from non-accredited investors often results in incremental professional fees equal to or greater than the amount raised from these investors.

The Securities and Exchange Commission's rules distinguish between "accredited investors" and "non-accredited investors." "Accredited investors" may purchase securities that have not been registered with regulatory authorities, whereas "non-accredited" investors have fewer investment options.

To know more about unaccredited investors follow the link:

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