Answer: B) balances of the partners' capital accounts.
Explanation:
Final cash distributions should be made proportionally to partners based on what they have in their Capital Accounts.
The balance in the Capital accounts of Partners shows the level of contribution that each partner has made to the business as well as their ownership proportion. When cash is to be distributed finally, it should therefore be based on the proportion of these Capital account balances to reflect the contribution and ownership.
The correct answer is extra commissions.
Travel agencies will often recommend a preferred supplier because they are receiving extra commissions from the suppliers. The extra commissions do not necessarily need to be in cash. Often the extra commissions will be in the form of things like trips, free hotel rooms and cruises for the travel agents.
Answer: Bond issuer
Explanation:
A callable bond is the type of bond which gives privilege to the issuer of the bond to redeem the bond before the bond will reach its date of maturity.
Therefore, the party that has the right to exercise a call option on callable bonds is the bond issuer.
Answer:
$31.82
Explanation:
market price $50
expected rate of return /Re) = 14%
Div = $50 x 14% = $7
risk free rate (Rf) = 6%
market premium (Rm - Rf) = 8.5%
beta = ?
14% = 6% + (beta x 8.5%)
beta x 8.5% = 14% - 6% = 8%
beta = 8% / 8.5 = 0.941
if beta doubles to 1.882, then Re will be:
Re = 6% + (1.882 x 8.5%) = 22%
new market price of the stocks = $7 / 22% = $31.818 = $31.82
Answer:
The correct answer is $23,260.69.
Explanation:
According to the scenario, the given data are as follows:
Payment (pmt ) = $7,000
Time period (n) = 3
Rate of interest (r) = 5.2%
So, we can calculate the future value by using following formula:
FV = Pmt ( 1 + r)^n + Pmt ( 1 + r)^n-1 + Pmt ( 1 + r)^n-2
By putting the value, we get
= $7,000 ( 1 + 0.052)^3 +$7,000 ( 1 + 0.052)^2+$7,000 ( 1+ 0.052)^1
= $23,260.69
hence, The future value after 3 years will be $23,260.69.
