Answer:
The correct answer is durable; instability.
Explanation:
The stock of capital goods in hand affects investment spending. If there are sufficient capital goods in hand, the purchase of more goods will be uneconomical.
Capital goods are durable so their purchase can be postponed just like durable consumer goods. But this makes changes in investment spending unpredictable and unstable.
Answer:
D)The yield to maturity of a callable bond is calculated as if the bond were called at the earliest opportunity.
Explanation:
The callable bond should be trade at the less price so it would generate the high return as compared with the non-callable bond. Whenever it is low it generated the high return but it could not increase over and above to the call value at the time when the yield is less. Also prior to the call date the investors expected that the issuer would follow and the price of the bond represent the given strategy
but the yield to maturity should not be measured at the time when the bond can be called
Therefore d option should be considered
Answer:
The cost of Goods Sold is $142,000
Explanation:
The equation for determining the ending inventory is:
Opening Inventory + Purchases - Closing Inventory = Cost of Goods sold
By solving the equation with the available data;
$12,000 + $150,000 - $20,000 = $142,000
so the cost of goods sold as calculated is $ 142,000.
Answer:
15,684.97 units
Explanation:
Given that
Initial investment = $229,700
Project life = 4 year
Fixed cost = $66,800
Price variable cost = $5.07
Selling price = $12.99
Variable costs = $5.07
The computation of break-even point is shown below:-
Depreciation = Initial investment ÷ Project life
= $229,700 ÷ 4
= $57,425
Break even point = (Fixed cost + Depreciation) ÷ (Price variable cost)
= ($66,800 + $57,425) ÷ ($12.99 - $5.07)
= 15,684.97 units
Answer:
The correct answer is C
Explanation:
The journal entry for the re- issuance will be as follows:
Cash A/c....................................................Dr $6,500
Treasury Stock A/c...........................................................Cr $5,500
Paid-In Capital from Sale of Treasury Stock A/c........Cr $1,000
Working Note:
Paid-In Capital from Sale of Treasury Stock = Cash - Re-issued amount
Paid-In Capital from Sale of Treasury Stock = $6,500 - $5,500
Paid-In Capital from Sale of Treasury Stock = $1,000
