Answer:
d. Claims exchange transaction
Explanation:
Claims exchange transaction -
It refers to any discrepancy in the claims , is referred to as claims exchange transaction .
In this case the claim of one reduces and others increases and hence the total claim remains constant .
Hence , from the given scenario of the question ,
The correct option is d. Claims exchange transaction .
Answer:
The correct answer is that Gloria would have to invest $75,581 today at the rate of 7.25 % to receive $100000 in four years,hence option is correct
Explanation:
FV=PV(1+r)^t
FV=$100000
PV= is unknown
r=7.25%
t=4years
PV=FV/(1+r)^t
PV=100000/(1+0.0725)^4
=$75581
Hence the amount Gloria has to invest today is $75581
Answer and Explanation:
Risk and return are equal companions if we invest in a market with a higher risk that's mean this type of market provides a higher return.
If Investors invest their whole money in the high-risk market for there high return, may they get a huge loss.
So, The exposure must be balanced by investments in diversified markets with different risk weights.
Answer:
a) Contribution from the special order= $52,640.
b) Stuart should accept the order
Explanation:
The amount of contribution to profit from the special order is the difference between the revenue and the relevant cost of variable cost of the special order.
The relevant cost of the special order is equal the sum of all variable cost only.
Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.
Relevant variable costs of special order = (880 + 510) × 47 = $65,330
Sales revenue = 2,510 × 47 = $117,970.00
Contribution from the special order =$117,970.00 - $65,330
= $52,640.00
B) Stuart should accept the special order because it would increase its profit by $52,640.
