Answer:
a. $58,400
Explanation:
A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.
<em><u>Calculations</u></em>
principal x discount rate x time = discount
<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.
60,000 x 0.08 x 120/360 = 1,600
Now, we subtract this amount form the nominal:
nominal - discount = net
60,000 - 1,600 = <u>58,400</u>
Answer:
(European) goldsmiths
Explanation:
European goldsmiths (Italian goldsmiths were the first) formulated a principle that only 5% of deposits were needed in reserve at any particular time, therefore they could lend 95% of the gold they held in deposit.
Goldsmiths would rent space in their vaults that allowed other people to keep their gold in a safe place. That led to transactions were notes indicating the amount of gold deposited would be traded instead of trading gold itself.
Eventually goldsmiths discovered that they could trade (lend) more money than the amount of gold they held in deposits, inventing fractional reserve banking.
Answer:
$12,000 and $6,000
Explanation:
For computing the dividend, first we have to find out the yearly dividend which is shown below:
= Number of shares × par value per share × dividend rate × number of years
= 1,000 shares × $100 × 6% × 2 years
= $12,000
Out of $18,000, the $12,000 will be paid to preferred stockholders and the remaining $6,000 will be paid to common stockholders
Longchamp’s iconic merchandise, Le Pillage is a range of
foldable, leather-trimmed nylon bags. The huge success is labelled as
“eternal”. Le Pillage’s achievement can be regarded as a perfect practice of
marketing mix. Part of 4P model can be used to analyze this case.
Product
Le Pillage’s successful product positioning is “Quality”. Intended
as a functional bag, Le Pillage accepted one of the most practical and unusual
materials, nylon which is durable, sturdy, light as well as cheap.
Price
Le Pillage’s price plan, that average price is €90, made
this sequence of bags reasonable to most of the consumers.
Promotion
In 2006, Le Pliage sprang its first marketing campaign with
Kate Moss. Even in this campaign, model didn’t carry Le Pliage, halo effect of
Longchamp brand has enthused its trades.
Place
Longchamp brand as the strongest support plays the crucial
role in Le Pliage’s successful distribution.
Answer:
$5100
Explanation:
The cost of the inventory in $25000 and the cost of shipping it to the consignee, $500.
The cost of marketing brochures an comissions are recognized as expense and do not affect inventory. If 80% of the inventory was sold, 20% remains, which will have a carrying value of $25,500 X 20% = $5100
