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AleksAgata [21]
2 years ago
11

Jacobi Supply Company recently ran into certain financial difficulties that have resulted in the initiation of voluntary settlem

ent procedures. The firm currently has $150,000 in outstanding debts and approximately $75,000 in liquidatable short-term assets. Each creditor will be paid 50 cents on the dollar immediately, and the debts will be considered fully satisfied. Indicate whether the plan is an extension, a composition, or a combination of the two. Indicate the cash payments and timing of the payments required of the firm under the plan.
Business
1 answer:
Mashcka [7]2 years ago
5 0

Answer: Composition

Explanation:

The company owes $150,000 and would pay $0.50 on every dollar immediately.

The cash payment required of the company would therefore be:

= Amount of debt in $ - Amount to be paid per dollar.

= 150,000 * 0.5

= $75,000

Timing of payment is immediately.

A composition refers to an agreement between a debt and its creditors that would allow it to pay off part of its debt in lieu of the total value. This is usually done when the debt risks being insolvent or bankrupt but can still pay off part of its debt.

The agreement would enable it pay off some of the debt and the entire debt would be written off. The benefit to the debtor is that they avoid bankruptcy and the benefit to the creditor is that they get more than they would have gotten had bankruptcy been declared.

A composition is what happened here as a part of debt was paid to satisfy the full thing.

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Answer:

The correct answer is (E)

Explanation:

Louisa is using avoiding strategy, which is an important conflict resolution strategy. Individuals generally pick this technique when the distress of encounter exceeds the potential reward of the disagreement. In this scenario, it is better to avoid someone rather than to enter into a conflict that could affect the company's goals and objectives.

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3 years ago
Jeff wishes to accumulate $5,000 in 5 years. Use the appropriate formula to find the sinking fund payment she would need to make
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Answer:

$1, 154.873

Explanation:

The appropriate formula is

P   = PV ×      <u>       r     </u>

                    1 − (1+r)−n

P is the amount that needs to be set aside every year

Where PV  is $5000

r is 5% or 0.05

n is five years

P = 5000 x  <u>    0.05          </u>

       1-(1+0.05)-5

P= 5000 x <u>      0.05      </u>

             1-0.783526166

P= 5000 x (0.05/0.216473834)

P = 5000 x 0.2309747976

P= 1, 154.873

3 0
2 years ago
A portfolio manager at an investment firm is responsible for handling the account of a particular corporate client. The client w
garri49 [273]

Answer:

A portfolio manager at an investment firm is responsible for handling the account of a particular corporate client. The client want to pay the manager a $100K bonus over and above his regular compensation from the investment firm if the manager achieves an 18% annual return on the account. To comply with the Code and Standards, the manager:

B. cannot accept this offer because it will interfere with his independence and ability to be objective regarding investment decisions and recommendations.

Explanation:

According to the Standard I(B) guidance of the CFA Institute, it is the responsibility of members "to maintain independence and objectivity." These include avoiding potential conflicts of interest and other adverse circumstances that can prejudice one's judgment.  The standard specifically forbids members from offering, soliciting, or accepting any form of gift, benefit, compensation, or consideration that can compromise their independence and objectivity.

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3 years ago
Fruits in their season cost less than when they are not in season. This is an example of a situational influence on value. Which
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Answer:

d. Time of the year

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3 years ago
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. L
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Answer: low (near 0%)

Explanation:

The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.

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