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3 years ago

Why is nominal value important ?

1 answer:

3 0

Answer: A preferred stock's nominal (par) value is important in that it is used to calculate its dividend while the nominal value of common stock is an arbitrary value assigned for balance sheet purposes. In economics, nominal value refers to the current monetary value and does not adjust for the effects of inflation.

Explanation:

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North Around, Inc. stock is expected to return 22 percent in a boom, 13 percent in a normal economy, and −15 percent in a recess

almond37 [142]

Answer:

4.53%

Explanation:

Data provided in the question:

Expected return = ∑ (Return × probability)

Thus,

Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))

= 12.98%

Now,

Probability Return Probability × (Return-Expected Return)²

0.06 22 0.06 × (22% - 12.98%)² = 4.8816

0.92 13 0.92 × (13% - 12.98%)² = 0.000368

0.02 -15 0.02 × (-15% - 12.98%)² = 5.657608

========================================================

Total = 20.5396%

Standard deviation = $\sqrt{\frac{\text{Total probability}\times(\text{Return-Expected Return})^2}{\text{Total probability}}$

= √(20.5396)

= 4.53%

6 0

3 years ago

The following data apply to keefin booni company (million of dollars)

777dan777 [17]

The correct answer is BOE *]

4 0

3 years ago

The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following

Maurinko [17]

Answer:

Net income = $364,000

Earning per share (EPS) = $0.36 per share.

Explanation:

A continuous multiple-step statement of comprehensive income is a form of income statement shows in a categorical and continuous manner operating income, i.e. the profit earned from the primary activities of an entity through buying and selling merchandise, other income and expenses, and net income.

For this question, continuous multiple-step statement of comprehensive income can be prepared as follows:

Lindor Corporation

Multiple-step Statement of Comprehensive Income for 2016

Details $ 

Sales revenue 2,300,000

Cost of goods sold 1,400,000

Gross profit 900,000

Operating expenses:

Selling and administrative expenses (420,000)

Operating income 480,000

Non operating income and exp.:

Unrealized holding gains on inv. sec. 80,000

Interest expense (40,000)

Income before tax 520,000

Income tax (30% * $520,000) (156,000)

Net income  364,000 

EPS (364,000 / 1,000,000) 0.36

8 0

3 years ago

When a seller advertises goods for sale on a web site, that seller is making an offer to potential buyers.

Stels [109]

I believe that the answer is true.

7 0

3 years ago

Read 2 more answers

When you have an exclusive contract with a real estate agent, what should you expect and not expect?

zhenek [66]

Answer:

You should expect the following when you sign an exclusive contract with a real estate agent as a buyer:

the agent has to locate and identify potential properties that might interest you, and advice you about a fair market price
the agent is responsible for reviewing the paperwork
the agent is also responsible for preparing purchase offers, and other related services

You should expect the following when you sign an exclusive contract with a real estate agent as a seller:

the agent has to locate and identify potential buyers that might be interested in your property, and try to obtain the best possible price.
the agent is responsible for reviewing the paperwork
the agent is also responsible for negotiating purchase offers

4 0

3 years ago