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3 years ago

Is a market where securities are bought and sold

Business

1 answer:

pantera1 [17]3 years ago

5 0

A primary market is where securities are bought and sold.

You can buy and sell securities through brokerages, the issuing company, banks, or individual investors.

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Consider a mutual fund with $300 million in assets at the start of the year and 10 million shares outstanding. The fund invests

djyliett [7]

Answer: Start = $300 million

End = $318.59 million

Explanation:

NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.

At start of the year NAV is $300 million and NAV per share is therefore,

= 300 million/ 10 million

= $30 per share.

Ending NAV

During the year the fund made Investments and increased by a price of 7%

= 300 million (1 + 0.07)

= $321 million

We still have to subtract the 12b-1 fees that the fund charges though and that would result in,

= 321 million * (1 - 0.0075)

= 318.5925

= $318.59 million.

Dividing this by the total number of outstanding shares we have,

= 318.59 /10

= $31.86

$31.86 is the NAV per share at year end.

5 0

3 years ago

Paney Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable ove

PilotLPTM [1.2K]

Answer:

c.$21,670

Explanation:

The computation of the break-even point in sales dollars is shown below:

Break even point = (Fixed expenses) ÷ (Profit volume Ratio)

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $10 -$1.50 -$1.20 - $0.90 - $0.40

= $6

And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100

So, the Profit volume ratio = (6) ÷ (10) × 100 = 60%

And, the fixed expenses is $13,000

Now put these values to the above formula

So, the value would equal to

= ($13,000) ÷ (60%)

= $21,670

8 0

3 years ago

Both Apple and Google sell electronic devices, and each of these companies has a different product mix.

Marrrta [24]

Answer:

Apple contribution margin

$ 300 per unit

Apple Break even point:

$ 120 units

Google contribution margin

$ 200

BEP

$ 50

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

<em><u>Where:</u></em>

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

Apple contribution margin

550 - 250 = 300 per unit

Apple Break even point:

36,000 / 300 = 120 units

Google contribution margin

470 - 270 = 200

BEP

10,000 / 200 = 50

3 0

3 years ago

On January 1, 2021, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year period ending December 31, 20

Step2247 [10]

Answer and Explanation:

The Journal entries are shown below:-

1. Right of use assets Dr, $371,049

To Lease payable $371,049

(Being lease is recorded)

Working note:-

Present value of periodic lease payment $354,595

($100,000 × (present value of ordinary annuity of $1, n = 4, i = 5%)

($100,000 × 3.54595)

Present value of an estimated cash payment under a residual value

$16,454 (Present value $1, n = 4, i = 5%)

Lease payment = $354,595 + $16,454

= $371,049

2. Amortization expense Dr, ($371,049 ÷ 4 years) $97,262

To Right of use assets $97,262

(Being related to the lease is recorded)

3. Interest expense Dr, (5% × $371,049) $18,552

Lease payable Dr, $81,448

To annual payment of cash $100,000

(Being annual payment of lease is recorded)

3 0

3 years ago

St. Augustine Corporation originally budgeted for $360,000 of fixed overhead at 100% of normal production capacity. Production w

Ksju [112]

Answer:

$9,000 unfavorable

Explanation:

The computation of the total fixed overhead variance is shown below:

= Actual fixed overhead costs - Budgeted fixed overhead

where,

Budgeted fixed overhead is $360,000

And, the Actual fixed overhead cost is computed below:

= Actual fixed overhead × Actual production ÷ budgeted production

= $360,000 × 11,700 units ÷ 12,000 units

= $351,000

Now put these values to the above formula

So, the value would equal to

= $351,000 - $360,000

= $9,000 unfavorable

5 0

2 years ago