Answer:
Explanation:
A. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. - Credit Swiss bank and Debit Capital account as purchase of German Stock
B. An American buys a share of German stock, paying the seller with a check on an American bank. Credit American bank and Debit Capital account as purchase of German Stock
C. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. Credit American bank and Debit Capital account as foreign currency exchange
D. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. Credit Traveler's check (Current Account) and Debit Currency transfer (payment for service)
E. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. it has no financial implication as its a donation.
F. A U.S.-owned factory in Britain uses local earnings to buy additional machinery. No entry as the transaction has nothing to do with country's asset.
Answer:
$44.25
Explanation:
<u>procedure 1:</u>
we can determine the present value of the stock using the following formula:
present value = future value / (1 + constant growth rate)ⁿ
- future value = $50
- constant growth rate = 13%
- n = 1
present value = $50 / (1 + 13%) = $50 / 1.13 = $44.25
<u>procedure 2 (optional):</u>
future value = future dividend / (required rate of return - constant growth rate)
$50 = future dividend / (18% - 13%)
future dividend = $50 x 5% = $2.50
now we must determine the dividend for the current year:
current dividend = future dividend / (1 + constant growth rate)
current dividend = $2.50 / (1 + 13%) = $2.50 / 1.13 = $2.21
now we apply the Gordon growth model:
present value = dividend / (required rate of return - constant growth rate)
present value = $2.21 / (18% - 13%) = $2.21 / 5% = $44.25
Economic profit<span> is the difference between total monetary revenue and total costs, but total costs include both explicit and implicit costs. </span>Economic profit<span> includes the opportunity costs associated with production and is therefore lower than </span>accounting profit<span>.</span>
Answer:
People usually prefer saving their time by buying at a place where they can find all the necessity products, they pay a few cents more for a single product just because they don't have to visit another store in order to buy the remaining goods.
Explanation:
Sometimes we pay a few cents extra for a product as compared to the same product available somewhere else at a cheaper price because a great variety of product is available.
People usually prefer saving their time by buying at a place where they can find all the necessity products, they pay a few cents more for a single product just because they don't have to visit another store in order to buy the remaining goods.
Answer:
Net gain = $60,000
Explanation:
Given:
Sale value of house = $540,000
Adjusted value = $220,000
Selling expenses = $10,000
Computation of gross profit on the house:
Gross profit on sale = Sale value of house - Adjusted value - Selling expenses
Gross profit on sale = $540,000 - $220,000 - $10,000
Gross profit on sale = $310,000
Maximum limit on gain from sale of house = $250,000(Form number 1040, Schedule D)
Computation of net gain:
Net gain = $310,000 - $250,000
Net gain = $60,000
