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3 years ago

Determine which is the better investment: compounded semiannually or compounded quarterly. Round your answers to decimal places.

Business

1 answer:

klemol [59]3 years ago

8 0

Answer:

the numbers are missing, so I looked for a similar question and found:

Determine which is the better investment: 5.22% compounded semiannually or 5.24% compounded quarterly. Round your answers to 2 decimal places.

effective interest rate for semiannual compounding = (1 + 5.22%/2)² - 1 = 5.29%
effective interest rate for quarterly compounding = (1 + 5.24%/4)⁴ - 1 = 5.34%

Compounded quarterly is a better investment than compounded semiannually

Explanation:

The shorter the compounding period, the more interests received (or paid if it is a loan) and the nominal interest rate is the same:

E.g. lets assume that the nominal interest rate is 10% per year:

effective interest rate for annual compounding = 10%
effective interest rate for semiannual compounding = (1 + 10%/2)² - 1 = 10.25%
effective interest rate for quarterly compounding = (1 + 10%/4)⁴ - 1 = 10.38%
effective interest rate for monthly compounding = (1 + 10%/12)¹² - 1 = 10.47%

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shepuryov [24]

Answer:

par value = $0.01 per stock

Explanation:

Retained earnings are capitalized to measure how the issuance of new stocks affects existing outstanding shares. In this case or any other case, retained earnings will be capitalized at par value, since the market value of the shares doesn't affect it.

If new shares were issued in an unrelated operation, the accounts that would be affected are common stock and additional paid in capital, not retained earnings.

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4 years ago

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared mo

Usimov [2.4K]

Answer:

1) Planning Budget

Packaging Solutions Corporation

Production Department Planning Budget

For the Month Ended March 31

Direct labor 66010

Indirect labor 10240

Utilities 8270

Supplies 2520

Equipment depreciation 29890

Factory rent 8400

Property taxes 2600

Factory administration 16380

Total expense 144310

2) Flexible budget :

Packaging Solutions Corporation

Production Department Flexible Budget

For the Month Ended March 31

Direct labor 62790

Indirect labor 9960

Utilities 8130

Supplies 2480

Equipment depreciation 29310

Factory rent 8400

Property taxes 2600

Factory administration 16220

Total expense 139890

3.Packaging Solutions Corporation

Production Department Flexible Budget Performance Report

For the Month Ended March 31

Spending Variances

Direct labor 1540 U

Indirect labor 540 F

Utilities 530 U

Supplies 250 U

Equipment depreciation None

Factory rent 400 U

Property taxes None

Factory administration 610 F

Total expense 1570 U

Explanation:

Based on the information given from the question, the planning budget will look like the following

1) Planning Budget

Packaging Solutions Corporation

Production Department Planning Budget

For the Month Ended March 31

Direct labor 66010

Indirect labor 10240

Utilities 8270

Supplies 2520

Equipment depreciation 29890

Factory rent 8400

Property taxes 2600

Factory administration 16380

Total expense 144310

2) Flexible budget :

Packaging Solutions Corporation

Production Department Flexible Budget

For the Month Ended March 31

Direct labor 62790

Indirect labor 9960

Utilities 8130

Supplies 2480

Equipment depreciation 29310

Factory rent 8400

Property taxes 2600

Factory administration 16220

Total expense 139890

3.Packaging Solutions Corporation

Production Department Flexible Budget Performance Report

For the Month Ended March 31

Spending Variances

Direct labor 1540 U

Indirect labor 540 F

Utilities 530 U

Supplies 250 U

Equipment depreciation None

Factory rent 400 U

Property taxes None

Factory administration 610 F

Total expense 1570 U

7 0

3 years ago

Which of the following contributed to the financial crisis of 2008?

yarga [219]

All of the above given options contributed to the financial crisis of 2008.

Option D

<h3>Explanation: </h3>

The 2008 financial crisis has been cumulative of many factors which started in early 2000. Over the period of time from 2000-2008, the government sought to reduce federal funds rates increasing liquidity. The interest rates started increasing and the real estate market was at its saturation point, furthermore, there was also a subprime crisis in terms of loans and mortgages which negatively affected the market.

2008 recession was the climax of all the bad financial decisions that prevailed for many years prior. However, the recession was a global problem and many governments sought to reduce rates, purchased distressed assets and also sought to the nationalization of some financial institutions.

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3 years ago

Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table s

gavmur [86]

Answer:

a. 42.5%, 34.4%, 34.21%, 30.63%

b. Option D

The question in proper order

Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table summarizes data gathered relative to each of these alternatives,

The table is inserted below

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

a. Calculate the coefficient of variation for each alternative.

b. If the firm wishes to minimize risk, which alternative do you recommend? Why?

Explanation:

Coefficient of Variation = Standard Deviation/Expected Return * 100%

Standard

Expected deviation Coefficient of

Alternative return of return variation

A 20% 8.5% 42.5%

B 25% 8.6% 34.4%

C 19% 6.6% 34.21%

D 16% 4.9% 30.63%

(b)

Coefficient of Variation, CV, denotes the risk per unit of return. This implies that a low CV means a low risk per unit of return. Hence, the firm can minimize risk by opting for option D which gives the lowest CV and therefore offers the lowest risk

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