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3 years ago

(a)What is the meaning of subsidiary company (2)

Business

1 answer:

netineya [11]3 years ago

8 0

Answer:

A subsidiary company is a business that is owned, either partially or completely, by another company. This company is referred to as a parent company.

Explanation:

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Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan

Blababa [14]

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

5 0

3 years ago

Walters manufactures a specialty food product that can currently be sold for $21.20 per unit and has 19,200 units on hand. Alter

sdas [7]

Answer:

$37,760

Explanation:

The income for the current operation, without further processing, is given by:

$I_1 = 19,200*\$21.20\\I_1=\$407,040$

If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:

$I_2= 11,200*\$31.80+5,200*\$19.20-\$11,200\\I_2=\$444,800$

Therefore, the incremental net income of processing further would be:

$\Delta I=I_2-I_1=\$444,800-\$407,040\\\Delta I=\$37,760$

The incremental net income would be $37,760.

5 0

3 years ago

Richards Company manufactures a single product. All raw materials used are traceable to specific units of product. Current infor

Mice21 [21]

Answer:

what im iin 5th grade

Explanation:

8 0

3 years ago

Jim saw a decrease in the quantity demanded for his firm’s product from 8000 to 6000 units a week when he raised the price of

Delicious77 [7]

Answer:

The demand for Jim’s product is elastic

Explanation:

In this question, we are to calculate the price elasticity of demand for the product.

We proceed as follows;

The formula for calculating elasticity of demand is

e = [(Q2 - Q1) / {(Q1 + Q2) / 2}] / [(P2 - P1) / {(P1 + P2) / 2}]

Here, Q2 = 6000

Q1 = 8000

P2 = $250

P1 = $200

e = [(6000 - 8000) / {(8000 + 6000) / 2}] / [($250 - $200) / {($200 + $250) / 2}]

e = [(- 2000) / 7000] / [(50 / 225]

e = - 1.3

That means absolute value of e is 1.3.

So, as the absolute value of e is more than 1 (i.e., 1.3), that means the demand for the product is elastic.

6 0

3 years ago

Read 2 more answers

Suppose you purchase a 10-year bond with 6.5 % annual coupons. You hold the bond for four years, and sell it immediately after

Andrews [41]

Answer:

a. What cash flows will you pay and receive from your investment in the bond per $ 100 face value?

Year 0 Year 1 Year 2 Year 3 Year 4

-$109,13 $6,50 $6,50 $6,50 $112,53 (6,5+106,03)

b. What is the annual rate of return of your investment?

5,3%, the YTM of the bond.

Explanation:

If the YTM of the bond does not change during the year, it means that at the time the bond was sold, the total rate of return would be the same as was when the bonds were purchased, in this case 5,3%.

Bond Value

Principal Present Value = F / (1 + r)^t

Coupon Present Value = C x [1 - 1/(1 +r)^t] / r

Price of the Bond at the moment it was purchased:

The price of this bond it's $59,66 + $6,5 = $109,13

Present Value of Bonds $59,66 = $100/(1+0,053)^10

Present Value of Coupons $49,47 = $6,5 (Coupon) x 7,61

7,61 = [1 - 1/(1+0,053)^10 ]/ 0,053

Price of the Bond 4 years later:

The price of this bond it's $73,66 + $32,68 = $106,03

Present Value of Bonds $73,66 = $100/(1+0,053)^6

Present Value of Coupons $32,68 = $6,50 (Coupon) x 5,03

5,03 = [1 - 1/(1+0,053)^6 ]/ 0,053

4 0

4 years ago

(a)What is the meaning of subsidiary company (2)​

(a)What is the meaning of subsidiary company (2)