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2 years ago

Which factor makes a currency more attractive to investors

Business

2 answers:

Mrrafil [7]2 years ago

8 0

Answer:

A low inflation rate

Explanation:

just took the quiz

Anna007 [38]2 years ago

3 0

The correct answer is B. A low inflation rate! I hope this helps you!

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TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc

alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = $\frac{45,000}{2,500}$ = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0

3 years ago

Which of the following statements is false? Multiple Choice Prepaid insurance is a deferred expense. Prepaid insurance represent

inna [77]

Answer:

B. Prepaid insurance is shown on the income statement

Explanation:

Prepaid insurance first and foremost is a current asset and as such will not reflect in the income statement but in the statement of Financial Position or Balance Sheet.

Although, prepaid insurance will be shown as paid within the year, it must be deducted from the insurance premium paid for the current year and then reported in the balance sheet as a current asset.

Prepaid insurance is treated as a current asset because it is an indication of insurance premiums paid for by the company in advance. It is a payment for economic benefits that will be enjoyed in the future, therefore it is a current asset. The only part of an insurance premium that shows in the income statement is the insurance expense paid for insurance benefit enjoyed in the current period

3 0

3 years ago

Childers Company, which uses a perpetual inventory system, has an established petty cash fund in the amount of $500. The fund wa

Salsk061 [2.6K]

Answer:

c. A credit to Cash of $272.75.

Explanation:

These transactions can be explained with the help of T- Account .

<h2> Cash </h2><h3>Debit Credit </h3>

Bal $ 500

Freight $61

Shipping

Charges $ 85

Supplies $ 50

Donation $ 69

Suspense 7.75

Fund $ 227.25

Fund $ 227.25

Reimbursement  $272.75

$ 500

As there is shortage of $ 272.25 in the amount of $ 500 the petty cash will be reimbursed with this amount.

An amount of $ 7.75 is short which is dealt in suspense account and reimbursed with the amount falling short.

5 0

3 years ago

Star Studios is looking to purchase a new building for its upcoming film productions. The company finds a suitable location that

andriy [413]

Answer:

Present value for option 1 = $1,460,000

Present value for option 2 = $1,460,971.84

Present value for option 3 = = $1,324,815.67

Present value for option 4 = $1,614,077.65

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

For the first option, the present value is $1,460,000.

For the second option:

Cash flow in year zero = $460,000

Cash flow each year from year one to ten =

$136,000

I = 6%

Present value = $1,460,971.84

For the third option:

Cash flow each year from year 1 to 10 = $180,000

I = 6%

Present value = $1,324,815.67

For the fourth option:

Cash flow each year from year 1 to 4 = 0

Cash flow in year 5 = $2,160,000

I = 6%

Present value = $1,614,077.65

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

8 0

3 years ago

Cullumber Inc. had sales of $2,300,000 for the first quarter of 2020. In making the sales, the company incurred the following co

yarga [219]

Answer:

Net Income $ 494,000

Explanation:

Cullumber Inc.

CVP income statement

For the Quarter Ended March 31, 2020.

Sales of $2,300,000

Variable

Cost of goods sold $941,000

Selling expenses 104,000

Administrative expenses 108,000

Total Variable Expenses $1153,000

Contribution Margin $ 1147,000

Fixed

Cost of goods sold $474,000

Selling expenses 77,000

Administrative expenses 102,000

Total Fixed Costs $ 653,000

Net Income $ 494,000

7 0

3 years ago