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Sati [7]
3 years ago
7

Supercircuits is a decentralized company and has a required opportunity cost of capital of 15%. The home computer division, whos

e current ROI IS 10%, is considering an investment which will earn 13% return. The gaming division, whose current ROI is 20%. Is considering an investment which will earn a 17% return. If the objective is to maximize residual income, each division will make the following choice:______. Computer Gaming A. Reject Accept B. Accept Reject C. Accept Accept D. Rejec Reject
Business
1 answer:
stiks02 [169]3 years ago
6 0

Answer:

B. Accept Reject

Explanation:

As we can see that the home computer has the earning of 10% and its return on investment is increased to 13% so it is a better choice for division of home computer to accept the investment and the other division i.e. gaming division should reject the proposal as it is already earned the 20% and if it is accepted so it decreased the return on investment

Therefore the option B is correct

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Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Ama
Kryger [21]

Explanation:

The Journal entry is given below:-

1 January 2020             No Entry

31 December 2020       Compensation Expense Dr,         6,580

                                              To, Paid-In-Capital                         6,580

(Being the compensation expense stock-option plan is recorded)

Working Note:-

Compensation Expense

= $7 × 4,700 ÷ 5

= $7 × 940

= $6,580

7 0
2 years ago
Why is there a difference between interest charged and interest earned? A)Banks are non-profit institutions.B)Banks are profit-m
skelet666 [1.2K]

The correct answer is choice b.

Banks are profit-making institutions. Their purpose is to make a profit for their owners or stockholders. They need to charge more interest on the money that they loan out than what they pay on savings accounts so that there is a profit for them.

5 0
2 years ago
T. L. Jones Trucking Services establishes a petty cash fund on April 3 for $500. By the end of April, the fund has a cash balanc
djyliett [7]

Answer:

The question is missing some figures which can be seen from the attached image.

Petty cash is a fund set aside in the office to pay minor day to day expenses incurred.Usually, an amount is made available at the beginning of period called float,from which expenses can be paid and the amount equal to spend is reimbursed at the end of the month.

In order, to make payment even more easier,some businesses take up credit cards from financial institutions,from  which expenses can be paid on account.

The balance of $415 means in petty fund,implies that $85  spent needs to be replenished at month end and that the remaining expenses were paid with credit card.

Explanation:

Find in the attached spreadsheet the entries posted in respect of petty cash and credit card expenses in the month.

5 0
3 years ago
A) provide funding flexibility to the purchaser.
uranmaximum [27]

Answer:

None

Explanation:

Dear friend,

Kindly input the complete question not just the options.

Thanks

6 0
3 years ago
suppose you are thinking about purchasing a small office building for $1,500,000. the 30 year fixed rate mortgage that you have
Mnenie [13.5K]

$352,696 lender stand to lose in the absence of pmi. A borrower may be required to PMI as a condition of obtaining a conventional mortgage loan.

<h3>What is Private Mortgage Insurance (PMI) ?</h3>

Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. When a buyer puts down less than 20% of the home's price, the majority of lenders demand PMI.

In contrast to most insurance types, this one safeguards the lender's investment in the house, not the policyholder. However, PMI enables some people to purchase a home more quickly. PMI makes it possible for people to get financing if they decide to put down between 5% and 19.99% of the home's cost.

It does, however, incur additional monthly expenses. Until they have built up enough equity in the property that the lender no longer views them as high-risk, borrowers must continue to pay their PMI.

Formula for calculating PMI :Divide the loan amount by the property value. Then multiply by 100 to get the percentage. If the result is 80% or lower, your PMI is 0%, which means you don't have to pay PMI.

To learn more about mortgage refer :

brainly.com/question/24040386

#SPJ4

6 0
1 year ago
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