Answer:
Everything else being equal, you should invest if the discounted value of the security's expected future cash flows is greater than or equal to the current cost of the security.
Explanation:
You would use the capital budgeting technique known as net present value (NPV) . In order for a project or investment to be accepted, the sum of the present values of future cash inflows generated by the project should be greater than the initial amount invested or the initial cost. If the PV of the future cashflows is lower than the initial cost of capital, the investment would be rejected. On the other hand, if they are equal, the investor would be indifferent between accepting or rejecting the investment.
Answer: MULTINATIONAL
Explanation: MULTINATIONAL ENTERPRISE is any Enterprise that has its presence and does business in two or more countries. The presence can be in the form of Production facilities, Marketing facilities,joint ventures or even Franchise etc
Companies like Green Cleaners Inc., a U.S. company which has expanded to Spain and Poland are multinationals. Multinational organizations or enterprises have huge capital base through which they are able to acquire properties abroad.
Answer:
FALSE
Explanation:
As the lower coupon means there is less amount of cash subject to variation of interest rate.
We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.
If a bonds coupon payment is 40 dollars while another bond coupon payment is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.
Answer:
Explanation:
The journal entries are shown below:
1. Cash A/c Dr$598
To Sales $560
To Cash over and short $38
(Being the cash sales are recorded and the remaining balance is credited to the cash over and short account)
2. Cash A/c Dr $1,112
Cash over and short A/c Dr $36
To Sales A/c $1,148
(Being the cash sales are recorded and the remaining balance is debited to the cash over and short account)
Answer:
Balance = $1,650
Explanation:
As Norma company has paid 4 months rent in advance, therefore at the end of June, norma company will record its 1-month expense as follows
Adjusting entry at the end of June would be
DEBIT CREDIT
Entry
Rent Expense $550
Prepaid Rent $550
The balance on Norma's prepaid expense would be
Prepaid Rent = $2200
Rent Expense = ($550)
Balance = $1,650
